The 2025 Brand Loyalty Engagement Index (CLEI), released by Brand Keys, delivers a detailed snapshot of how consumer loyalty operates as a predictive force for market share, profitability, and long-term brand growth. Now in its 27th year, the CLEI has evolved into a gold standard for understanding the complex dynamics that drive customer allegiance in today’s fast-changing marketplace.
Loyalty as the Ultimate Predictor of Success
Loyalty, as highlighted in the CLEI, has cemented itself as the most reliable predictor of consumer behavior. According to Robert Passikoff, founder and president of Brand Keys, the loyalty landscape has transformed over the decades. Brands that excel in delivering on specific consumer-driven metrics—captured through Brand Keys’ rigorous research—are rewarded with superior market shares, repeat business, and advocacy.
This year, the CLEI examined over 1,100 brands across 104 categories, engaging 81,348 consumers nationwide. Participants provided insights on their preferred brands using a sophisticated combination of psychological inquiries and statistical modeling. The findings, which are generalizable with a 95% confidence level, underscore the heightened complexities of fostering loyalty in a marketplace shaped by digital transformation and increased competition.
The Winners: Who’s Dominating in 2025?
The CLEI introduced a new tiered system for recognizing brand loyalty—Gold, Silver, and Bronze—emphasizing excellence in delivering on category-specific drivers. Notable Gold Award winners include:
- Automotive: Hyundai
- Cable News: FOX
- Credit Cards: Discover
- Pizza: Domino’s
- MFP Copiers: Konica Minolta
These brands, among others, have mastered delivering on the factors most critical to their customers, such as “Right Brand, Right Design” in Automotive and “Device-Friendly News” in Cable News.
Insights on Loyalty Economics
The financial implications of loyalty, as outlined in the 2025 CLEI, are striking:
- Retention vs. Acquisition Costs: It now costs 15 to 22 times more to recruit a new customer than to retain an existing one, a staggering 20% increase since 1997.
- Profitability Boosts: A 5% increase in loyalty can drive lifetime profits per customer by as much as 86%.
- Operational Efficiency: A 2% rise in loyalty is equivalent to a 28% cost reduction program in terms of impact—a significant increase over earlier metrics.
The ability to harness these benefits is critical, particularly as brands face the dual challenges of digital acceleration and heightened customer expectations.
A Loyalty Paradigm Shift
Passikoff notes that the concept of loyalty has become more nuanced. It’s no longer about brand awareness or customer satisfaction; loyalty is a dynamic, multifaceted construct. It encompasses emotional connections, perceived value, and the ability to anticipate and fulfill customers’ evolving needs. The CLEI’s methodology reflects this complexity by evaluating brands against the four most relevant category-specific drivers of loyalty, alongside their associated attributes and values.
Lessons from Longstanding Leaders
Several brands emerged as loyalty stalwarts, maintaining category leadership over decades. Discover has topped the Credit Card category for 27 years, Google has led Search for 25 years, and Domino’s has dominated Pizza for 21 years. These brands demonstrate that long-term success is built on consistently delivering value and adapting to shifting consumer priorities.
Industry Implications: Winning Strategies for Loyalty
The findings from the 2025 CLEI provide actionable insights for brands aiming to solidify their loyalty strategies:
- Invest in the Drivers of Loyalty: Understanding and addressing category-specific loyalty drivers is non-negotiable. For example, in fast food, ensuring a balance between convenience, taste, and pricing is key, while in tech, innovation and user-friendliness take precedence.
- Retain Customers Proactively: With the rising cost of customer acquisition, brands must prioritize retention strategies, leveraging data to personalize engagement and anticipate needs.
- Leverage Predictive Metrics: The CLEI’s predictive models allow brands to forecast customer behavior and refine their offerings accordingly, ensuring long-term competitive advantage.
A Glimpse into the Future of Loyalty
As we move further into 2025, the insights from the CLEI provide a roadmap for navigating the intricacies of customer loyalty. Brands that recognize the strategic value of loyalty will not only outperform their competitors but also build a resilient foundation for sustained growth.
From an analyst’s perspective, the CLEI highlights the need for brands to view loyalty as a core business strategy rather than a marketing afterthought. The brands leading their respective categories have demonstrated that a customer-first approach—rooted in deep understanding and tailored delivery—remains the ultimate differentiator.
Photo by Markus Winkler on Unsplash