Dynamics ofCustomer Loyalty The ShiftingDynamics ofCustomer Loyalty Practitioner survey reveals what truly builds lasting connections,from brand strengths to the key role of experience management. Practitioner survey reveals what truly builds lasting connections,from brand strengths to the key role of experience management. IntroIntro Medallia and Ipsos are on a mission to uncover thetruth about loyalty. In 2024, Medallia conducted astudy of over 2,000 global consumers and unlockedinsights that challenge long-held beliefs: As it turnsout, loyalty isn’t as clear-cut as we once thought — itexists on a continuum. Not only that, customers don’tneed countless brand interactions to feel loyal. In fact,loyalty can spark from a single, standout experience. MedalliaandIpsosareonamissiontouncoverthetruth about loyalty.In 2024,Medallia conductedastudyof over2,ooo global consumersandunlockedinsights thatchallenge long-held beliefs:As it turnsout,loyalty isn't as clear-cut aswe oncethoughtitexists ona continuum.Not onlythat,customersdon'tneed countless brand interactionstofeel loyal.Infact,loyaltycansparkfromasingle,standoutexperience Medallia partnered with Ipsos to get insights straightfrom the source: CX leaders and experts. Together,we surveyed over 800 practitioners across industrieslike FinServ, B2B and IT, retail, healthcare, andmore. The result is this comprehensive report thatexplores the true value of loyalty, where brands excel(and fall short), the critical role of experiencemanagement, how loyalty programs fit in, and thetrends shaping loyalty’s future. Medalliapartnered withIpsostogetinsightsstraightfromthe source:Cx leadersand experts.Together,wesurveyed over800practitioners across industrieslikeFinServ,B2B and IT,retail,healthcare,andmore. The result is this comprehensive report thatexplores thetruevalueof loyalty,where brands excel(and fall short),the critical roleofexperiencemanagement, how loyalty programs fit in, and thetrends shaping loyalty's future. This raised a new question: how can organizationsadapt to this shift and create memorable experienceswhile designing strategies that reflect and recognizethis new loyalty landscape?This raisedanewquestion:how canorganizationsadapttothis shiftand creatememorableexperienceswhile designingstrategies that reflect andrecognizethisnewloyaltylandscape? AuthorAuthor AuthorAuthor Jamie Thorpe Chief Experience Officer, IpsosJamie ThorpeChief ExperienceOfficer,Ipsos Andrew Custage Head of Research Insights, MedalliaAndrew CustageHeadofResearchInsights,Medallia ExecutiveSummaryExecutiveSummary Customer loyalty is critical — 97% of CX practitioners agree — butour research shows there’s plenty that leaders still don’t fully grasp.For instance, customers often feel more loyal than brands realize,loyalty can form faster than expected, and while bad experiencescan drive churn, the impact isn’t always immediate. Plus, somerecovery tactics work better than others. Customerloyaltyiscritical-97%ofcxpractitionersagreebutourresearchshowsthere'splentythatleadersstilldon'tfullygraspForinstance,customers often feel more loyal than brands realize,loyaltycanformfasterthanexpected,andwhilebadexperiencescandrivechurn,theimpactisn'talwaysimmediate.Plus,somerecoverytacticsworkbetterthanothers. We also uncovered the powerful roles of experience managementand loyalty programs. Collecting customer feedback tops the list asthe most effective loyalty driver. Brands with rewards programsreport stronger CX performance and use them to fosterpersonalized, proactive engagement.We alsouncoveredthepowerful roles ofexperience managementandloyalty programs.Collecting customerfeedbacktops the listasthemost effective loyalty driver.Brands with rewards programsreport strongerCXperformanceandusethemtofosterpersonalized,proactiveengagement. Looking ahead, brands aiming to strengthen customer relationshipswill need to embrace generation-specific strategies, navigate acomplex tech landscape, and harness AI for loyalty. will needto embracegeneration-specificstrategies,navigateacomplextechlandscape,andharnessAlforloyalty. The future of loyalty isn’t just about retaining customers — it’sabout building smarter, stronger connections. Thefutureof loyaltyisn'tjustaboutretainingcustomersit'saboutbuildingsmarter,strongerconnections. Why does customerloyalty matter, anyway? Why does customerloyalty matter, anyway? Key FindingsKey Findings Customer loyalty isn’t just a nice-to-have; it’s a must-have for thriving brands.Customer loyalty isn't just a nice-to-have; it's a must-have for thriving brands. 87%87% 97%97% 87%87% Loyalty = Business SuccessLoyalty=BusinessSuccess When customers are loyal, they’re morelikely to spread the word and advocate for your brand.When customers are loyal,they'remorelikelytospreadthewordandadvocateforyourbrand. Customer loyalty plays a major rolein driving key business outcomes.Customerloyaltyplaysamajorrolein drivingkeybusiness outcomes. 86%86% 80%80% Big ROI