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Is Brand Loyalty Dead?

2 Mins read

Earlier this month, Klaviyo’s now monthly “Consumer Pulse” blog (for June 4th) looked at whether higher consumer prices were impacting customer loyalty. And the answer seems to be, “Yes, but…”

At the time of the survey, 67% of shoppers said they’d seen price hikes due to tariffs and import fees. Yet 49% of them say they would either stay loyal or comparison shop—if companies were transparent about the price increases. Klayivo says that shows that “honesty and clarity matter more than ever.”

But this doesn’t mean you can breathe easier. Loyalty, the survey shows, is still evolving—rapidly, as 27% of consumers admit they’re loyal to fewer companies this year. An additional 27% want to be rewarded for their loyalty and expect more value and recognition. Consumers are also less patient—23% say they won’t tolerate poor experiences.

Reasons to Leave

What makes consumers leave one business for another?

  • A better price/value—56%
  • More attractive loyalty benefits—25%
  • Poor customer service—23%
  • Better personalization elsewhere—13%
  • More innovative products or services—11%
  • Lack of recognition—9%

Conversely, why do customers stay loyal?

  • Consistent product quality—62%
  • Clear value proposition—42%
  • Loyalty perks—26%
  • Personalization—26%

Consumers are aware of why prices are on the rise, and more say they’re seeking American-made goods. Most (58%) say they’re doing it to support the local economy, while 45% want to avoid tariff-induced higher prices. Other factors include faster shipping (40%) and a perceived higher product quality.

As a result, Klaviyo suggests business owners reevaluate their supply chains now. And make sure you keep your customers informed about any changes—including price hikes.

Winning Customer Loyalty

Klaviyo says communication is key to winning your customers’ trust and keeping them loyal. And that customer loyalty is not “static,” but “conditional.” To win their loyalty and trust, Klaviyo recommends business owners:

Communicate with clarity. 49% of shoppers say they’d be more forgiving of price hikes if brands were upfront about why. Don’t bury the lead—tell the story behind the changes.

Double down on the basics. Consistent quality and a clear value proposition aren’t optional—they’re non-negotiable.

Rethink loyalty. Loyalty in 2025 isn’t just about points and perks. It’s about being the company that listens, delivers on promises, and recognizes customers as individuals.

I’d add that since you know customers are comparison shopping, it’s critical to be aware of what your competitors are up to, especially their marketing, pricing, and communication strategies.

 

Follow-up: I’m going to post this every week until the situation is resolved, because I’m still  “mad as hell.” And I’m still asking you to #StandWithSCORE.

SCORE is too valuable to be cut from the federal budget. The budget is in the hands of the Senate right now, so please contact your senators ASAP. You can get in touch often.

Tell them to stop talking about how “important small businesses are to our national economy” and do something about saving an organization that helps millions of small business owners every year.

If you think it’s not worth funding an organization that helps fuel the nation’s economy by guiding people through starting and growing a small business, you’re wrong. Small businesses create jobs, which in turn provide people with income that they spend in their communities. It’s the way you grow the economy—from the ground up.

Or just fill out this form (it takes less than 2 minutes), which will be sent to your congressional representative’s offices. And message Congress on social media. Tell them to save the people who save small businesses. Include @scorementors in your post. And the hashtag #StandwithSCORE.

Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.

Photo courtesy Getty Images for Unsplash+

 

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