A new joint study by Medallia and Ipsos titled Beyond Transactions: The Shifting Dynamics of Customer Loyalty surveyed more than 800 customer‑experience (CX) professionals across industries to uncover how loyalty is both understood and managed in today’s marketplace.
Key findings include the following:
- An overwhelming majority (86%) of CX professionals say customer loyalty will increase in importance as a business metric, while 97% agree loyalty drives overall success.
- While brands often assume loyalty is fragile, the report shows that loyalty is more stable than expected: nearly three‑quarters of customers say it would take around four or more negative experiences before switching away from a brand, contradicting the common belief among brands.
- Critical drivers of loyalty go beyond traditional price or product, with experience quality (88%) and customer experience (85%) now outranking price (70%) as loyalty levers.
- A significant gap exists in perception: many brands under‑estimate how loyal their customers actually are and mis‑assess what loyalty means. For example, some customers feel loyalty after a single positive transaction—but just 4% of professionals believe that.
- Also highlighted: the growing role of AI and feedback‑loops in scaling loyalty initiatives—brands that more fully integrate real‑time feedback and agile responses are better positioned to build lasting loyalty.
For retail and omnichannel professionals, the implications are clear: loyalty is evolving into an integrated metric tied to overall experience, culture and technology.
Investing in the employee experience, feedback systems, and real‑time responsiveness no longer complements loyalty—it lies at its core. As consumers expect seamless, meaningful connections, brands must shift away from discount‑centric loyalty models toward experience‑rich, value‑driven relationships.
