Inside the 5 (and Now 6) Types of Loyalty Every Brand Should Know

Loyalty isn’t what it used to be, as today’s consumers demand more than just points and perks. The race is on for CPGs to turn viral moments into meaningful, lasting relationships. Learn about a new loyalty type that's emerging, as well as tips on how CPGs can take advantage of it. April Tomlin, global VP of sales at Emarsys, recently sat down with Lisa Johnston, editorial director of CGT, to discuss how consumer loyalty is evolving beyond traditional rewards programs. The conversation was grounded on Emarsys' new "Customer Loyalty Index Report." The company has been tracking loyalty and how it's changed for more than five years. As part of this, they've classified loyalty into five different types: True: The "ride or die," unshakeable loyalty that can't be changed.Incentivized: Loyalty that's based on discounts and incentives.Ethical: Loyalty that's tied to consumers' personal beliefs.Inherited: Loyalty that's passed down to consumers.Silent: Loyalty that occurs when consumers advocate on behalf of a brand, even if they haven’t been prompted to.Loyalty today extends far beyond traditional rewards programs, noted Tomlin. A decade ago, many brands focused on incentivized loyalty through discounts or points. Now, they recognize the importance of offering functional and socially conscious benefits. Modern loyalty requires a holistic engagement strategy that goes beyond transactions — encompassing retention, emotional connection and shared values to build true, long-term brand allegiance — and it's a strategy more brands are getting their arms around today, she noted. Looking specifically at grocery loyalty, almost one-fifth of grocery shoppers said they’ll shop anywhere to meet their needs, which is both a challenge and an opportunity for grocers. To stand out in a commoditized market, grocery brands must move beyond price and convenience to deliver personalized, connected experiences. Leading retailers are using tools like mobile wallets to link digital and in-store behavior, elevate rewards programs and drive engagement through location-based campaigns, personalized offers and replenishment reminders, according to Tomlin. These efforts can transform routine grocery trips into meaningful, loyalty-building interactions.This year, a new type of loyalty also emerged: Trend loyalty. Capturing this type of consumer requires brands to balance the speed of viral trends with the long game of loyalty, which requires coordination across marketing teams. While trend participation is essential for visibility and acquisition, it’s equally important to convert those “trend loyal” shoppers into lasting customers. To do this, acquisition and retention teams need to work in sync, ensuring consistent messaging and connected data, Tomlin shared. Without that alignment, brands risk wasting resources chasing short-term attention instead of building enduring loyalty.Watch the full conversation to learn more about elevating loyalty strategies.

Inside the 5 (and Now 6) Types of Loyalty Every Brand Should Know

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