Most company executives think their customers love them.

But there’s a dangerous disconnect between what companies believe about loyalty and what customers actually feel. That gap can be so wide that it’s costing you revenue right now. 

Before you celebrate your retention metrics or launch another rewards program, you need to see what your customers really think.

The truth might sting, but ignoring it will cost you more…

Your customers aren’t as loyal as you think

The view from the C-suite? Rosy. 

From the checkout line? Not so much.

There is a massive 50-point gap between perception and reality. 

While 89% of executives believe customer loyalty has increased in recent years, only 39% of consumers agree.

In fact, 52% of consumers feel there has been absolutely no change in their loyalty levels, and 7% admit they are actually less loyal now.

The implication? Companies are mistaking “repeat purchases due to lack of options” or “habit” for genuine brand loyalty. 

Executives are patting themselves on the back for metrics that don’t reflect the customer’s heart. Don’t fall into that trap.

Stop relying on internal assumptions. Run a Net Promoter Score (NPS) or Customer Satisfaction (CSAT) survey immediately to see where you actually stand. 

How do your customers actually show loyalty?

Are you speaking the same love language as your customers? Probably not. 

Executives seem to overvalue “vanity metrics” while customers speak with their wallets.

Executives think 35% of loyalty is shown through social media engagement, but only 12% of consumers agree that liking a post equals loyalty.

The same goes for subscribing to a brand’s newsletter (14% vs 32%) and continuing to buy stuff even after the brand has experienced controversies or failures (16% vs 34%). 

For consumers, the ultimate sign of loyalty is consistently choosing the brand over competitors (50%), whereas executives undervalue this specific behavior at 41%.

Executives also overestimate how much loyal customers want to give feedback (37% execs vs 25% consumers).

What we think: Engagement does not equal retention. 

Executives are distracted by the “noise” of social media, while customers define loyalty simply by who they give their money to when a choice is presented.

Shift your KPI focus from social engagement rate to repeat purchase rate or “share of wallet rate” to track actual loyalty.

What’s the best way to talk to your customers and not annoy them? 

Despite the rise of TikTok or Slack, when it comes to brand communication, customers are acting like it’s the early 2000s. 

They want you to stay in the inbox:

A massive 59% of consumers prefer email as their primary communication channel with brands.

Text/SMS comes in at 18%, but it’s a steep drop-off from email. Surprisingly, only 5% prefer communicating via social media, and app push notifications sit at 13%

This reinforces that email is the “commercial” channel. People expect offers there. 

Social media is for entertainment, and texts are for friends (or delivery updates). Intruding on the wrong channel can have an effect opposite of building loyalty. 

What you can do: Don’t neglect your newsletter. Send your highest-value loyalty content and offers via email and don’t bury them in an Instagram Story or similar.

How to move beyond table stakes?

Maslow’s hierarchy of needs applies to marketing, too. 

You can’t build a penthouse of “exclusive perks” if the foundation of “product quality” is cracking. No, we won’t take back that allegory.

First, the baseline: To earn loyalty, reliable product quality and fair pricing are the absolute non-negotiables that executives and customers agree on. 

The differentiators: Once the basics are met, personalized experiences and exclusive rewards are where brands can actually earn “lasting loyalty” rather than just a one-off sale.

There is a notable gap in seamless customer experience, where executives think they are doing better or value it more than the impact it actually has on loyalty.

You cannot “perk” your way out of a bad product. Loyalty programs are multipliers, but they aren’t fixers. If the product works and the price is right, then the rewards program kicks in.

The Crew’s suggestion: Audit your “table stakes.” 

Before launching a new membership or a VIP membership, ensure your return rate and customer support ticket volume regarding product quality are low. That’s simple.

The ick list: What kills loyalty? 

Loyalty is hard to build but incredibly easy to destroy.

If you’re wondering why churn is high, it’s likely one of the “big three” offenders:

• Quality is everything: The fastest way to lose a customer is lower product quality, cited by 54% of respondents.
• Price Sensitivity: 49% of customers will walk away if there are price increases—inflation fatigue is real.
• Service Matters: 47% list poor customer service as a dealbreaker.

Interestingly, “irresponsible data use” (34%) and “misleading advertising” (32%) are significant, but secondary concerns.

Marketing often gets blamed for churn, but the data points to Product and Ops teams. 

If quality dips or prices spike without added value, no amount of “we miss you” emails will save the relationship.
Create a churn alert system if you can. For example, if you raise prices, immediately increase perceived value through bundled services or extended support to mitigate the risk.

The power of the program 

Why do people stick around? 

We might like to think it’s our brand values, but often, it’s the gamification.

The number one reason consumers remain loyal (at 41%) is simply that the brand offers a loyalty rewards program. The golden handcuffs, if you like.

Program can be bigger than the product: While 33% stay for high-quality products, the program itself is the stronger tether for this specific segment.

Only 7% stay because the brand aligns with their values, and only 5% because the brand makes them “feel special.” 

This data contradicts the “love brand” narrative. 

For many, loyalty is transactional. They are loyal to the rewards, not necessarily the logo. If the program stops, the customer stops.

The takeaway: If you don’t have a loyalty program, you are losing 41% of your potential retention power. Start simple: a points-for-purchase system is better than nothing.

Bonus chart #1: Another look at loyalty drivers

This chart offers a slightly nuanced view compared to the previous one.

Here, high-quality products (59%) are the clear winner for driving loyalty while the variety of products (41%) are also high up the list. 

On the other hand, even here the personal connection remains low, which shows that products and programs walk the walk, while “building relationships” is all talk.

This doesn’t mean that you should stop your relationship building programs. But if you don’t supplement them with quality products, the “we hear you” copy just won’t resonate.

The core conclusion: Rewards programs keep people locked in, as seen in the previous chart, but product quality is what makes them want to be there. 

You need the quality to get them, and the program to keep them.

Do this: In your marketing copy, lead with product specs and quality guarantees. Use the discounts/loyalty points as the closer, not the hook.

Bonus chart #2: Apps can help maintain loyalty

Getting a presence on someone’s phone is the holy grail of retention. 

The good news? They are surprisingly willing to give it to you, if you pay them in rewards.

A combined 60% of consumers are either very likely (29%) or generally likely (31%) to download a mobile app specifically to earn and track rewards.

Only 5% said they are “not likely at all” to download an app for this purpose.

The friction of downloading an app is high, but wanting points usually overcomes it. An app is a direct line to the customer, bypassing email filters and social algorithms.

If you have an app, gate your best rewards behind it. “download the app to unlock 20% off” is a high-conversion strategy to secure that phone real estate. 

Bonus chart #3: Would your customers use phone apps?

Once they download the app, do they use it? 

The data suggests that loyalty apps aren’t just digital dust-collectors:

52% of users check their loyalty apps weekly. That is a massive recurring engagement.

What do they want? 61% want exclusive deals and content, while 52% want real-time tracking of their points. A dedicated 10% check their rewards daily.

A weekly login beat is a marketer’s dream. It creates a habit loop. If users are checking for points, they are looking at your brand, your new arrivals, and your offers 52 times a year.

Refresh your “exclusive app deals” weekly to match this behavior pattern.

If the content is static, the login frequency will drop.

Another small tip: Let customers customize their rewards

Static rewards are out. Flexible rewards are in.

An overwhelming 81.2% of customers would rather shop with brands that let them pick their own rewards. Only 13.8% say it makes no difference.

A tiny 5% wouldn’t shop with brands that let them pick (which is… an odd hill to die on).

Personalization is more than email subject lines. Giving agency to the customer makes the reward feel earned and valuable. 

A vegan customer doesn’t want a leather keychain reward…

Loyalty ain’t cheap: here’s what you need to give

What is the exchange rate for loyalty? 

Customers have a clear price list for their devotion, and it involves their wallet and their time.

• The top expectation is reduced prices or better deals (55%).
• Great customer service (53%) is statistically tied for first place.
• Loyalty points or cashback comes in third at 50%.
• “Exclusive access to content” (27%) and “Early access to new products” (24%) are much lower priorities.

Marketers often over-index on “community” and “content” perks because they are cheaper to produce. But customers prefer hard currency (discounts) and respect.

Don’t replace a discount strategy with a content strategy. Your VIPs want 20% off, not a PDF guide.

Close the loop with data

Collecting feedback is useless if it sits in a spreadsheet. 

While companies are good at listening, they are bad at using that listening to drive growth.

62% of organizations use feedback to change customer service, and 56% use it to improve products.

Only 43% collect contact data for use in marketing campaigns, and even fewer (48%) “close the loop” with dissatisfied customers. 61% use the data to inform overall business strategy.

There is a disconnect here. 

If you fix a problem based on feedback but don’t market that fix to the people who complained, did it even happen? Marketing needs access to this feedback loop.

What you can do: Set up an automation. When a customer leaves a positive review, trigger an email inviting them to your referral program. 

When they leave a negative one, trigger a personal outreach task.

Boost retention by using contact data for building relationships

Finally, how are smart companies using contact data to boost retention? 

It’s moving beyond “blast emails” toward “relationship repair” and “relevance.”

• 46% use contact data to engage in more targeted/personalized communications.
• 43% use it to request further customer feedback.
• 33% use it to notify about new products or services.
• Interestingly, 31% use contact data specifically to send a personal apology.

The high percentage of “personal apology” usage shows a shift towards “human” CRM management. Data goes beyond selling to saving relationships when things go wrong.

The Crew’s tip: Create a “Win-Back” segment in your CRM. 

If a loyal customer has a support ticket tagged “negative experience,” automatically exclude them from promotional blasts and queue a personal apology email instead.

Loyalty check is a reality check

Customer loyalty isn’t built on assumptions or vanity metrics. 

It’s earned through quality products, fair pricing, and rewards that actually matter to your customers, not to your Instagram analytics. 

The gap between what executives believe and what customers feel is costing you money every day. 

Stop guessing. Start measuring. Build programs around what they actually want, not what you think looks good on a board deck.

Your customers are telling you exactly what they need. The question is: are you listening?