The Loyalty Code: Cracking the Secret to Lasting Customer Relationships

The world is awash in fleeting trends and transactional exchanges, supercharged by technological advancements and possibility. This atmosphere has created a breakneck purchasing environment, which has fundamentally changed the essence of brand loyalty. Too often, brands and marketers cling to an outmoded definition of brand loyalty, hewing closely to traditional loyalty programs – the points, perks, and subscriptions that get people coming back for more.

Consumers are increasingly more discerning with their time and attention, and choices are abundant; true loyalty is a battle for the heart, not just the wallet. It demands a shift in perspective, a move beyond superficial tactics, and a commitment to understanding what makes customers choose to stay.

If loyalty is to become more strategic than a program, we must better understand its particulars. From a less transactional perspective, loyalty is an expression of individual and group psychology experienced in the context of culture. Ogilvy One surveyed census-balanced cohorts of consumers spanning five industry categories in seven countries. We found that, across demographics and geographies, consumers see loyalty through four dimensions: principle, potential, culture, and community, which are broadly correlated to higher levels of repeat purchases.

Principle - Does a brand align with the consumer’s values?

In a time when people feel increasingly powerless over their lives and the direction of society, consumer choice has become a powerful form of action. Our research reflects that people vote with their wallet. Eighty five percent of respondents said they want brands to behave in ways consumers respect or prefer. People also responded that they prefer brands that make an impact that matters to them, which promote or express things that consumers value, and take actions to improve the world.

The takeaway for brands: Authentically live your values, ensure they resonate with your customers, and communicate them clearly in your marketing.

Potential – How will the brand impact consumers’ worlds, helping them thrive?

Beyond a crisis of values, we also face a crisis of expertise, with people seeking truth within their own information bubbles. In this landscape, consumers gravitate toward brands that offer Potential—the ability to improve their feelings, help them achieve their goals, and shape their identity.

Our research shows that consumers want brands that entertain them and/or make them feel good (particularly in accommodations and entertainment). Brands today play a crucial role in driving positive emotional experiences for their customers, and brands that attend to those needs and help people define themselves will earn their loyalty.

The takeaway for brands: Demonstrate the Potential to enhance customers’ lives by offering goods and services that simplify and improve their experiences.

Culture – Does this brand fit well with the culture, and what is its contribution to society?

As globalisation accelerates and sparks nationalist backlash, brands must navigate the tension between global reach and local preferences. Our research shows that consumers favor brands with distinct personalities that understand and engage with culture.

But in a polarised world, should brands lead culture or reflect it? The answer lies in the balance - those who successfully navigate cultural shifts without alienating key audiences will earn lasting loyalty.

The takeaway for brands: Reflect on culture rather than lead it, stay true to your values, and focus on the cultural factors that unite us.

Community – Will this relationship help foster connection more broadly?

Community has become sacred in a world of distrust, shaping consumer behaviour and brand loyalty. The Edelman Trust Barometer shows that people trust peers as much as scientists, reflected in a review-driven consumer experience and the rise of democratised influence.

Our research found that 76% of consumers prefer brands their friends and family are connected to and value that foster community. Fandoms add emotional depth, driving loyalty in sports, music, or fashion.

The takeaway for brands: Go beyond products or services and create shared experiences that spark excitement.

Conclusion

Loyalty is a primal human need, one that transcends transaction. That’s why, important as they may be, loyalty programs are not representative of the emotional relationship that are required between consumers and the brands they love. Brands looking to build generations-long relationships with people and their families need to understand what drives consumer loyalty - Principle, Potential, Culture, and Community. Together, understanding these drivers can help brands crack the code and start really building those lasting relationships.