In 2023, 71% of consumers reported switching brands in search of better value or personalized experiences, according to McKinsey. Brand loyalty, once a cornerstone of marketing success, is now harder to earn and even harder to sustain. But why?

The marketplace is more competitive than ever, with countless alternatives just a click away. Add to that the growing demand for tailored experiences: a study by Salesforce revealed that 66% of customers expect brands to understand their unique needs. Simply put, loyalty programs and discounts alone no longer suffice.

Take Netflix, for example. Once synonymous with customer loyalty, the streaming giant has recently faced subscriber churn due to rising competition from Disney+, Hulu, and others. It’s not just about offering content anymore; it’s about consistently delivering value and evolving with consumer preferences.

To counteract this trend, brands need to pivot their strategies toward building genuine, personalized connections. First, embrace hyper-personalization using data insights. Starbucks excels at this with its rewards app, offering custom recommendations and incentives based on individual buying behavior, driving both engagement and repeat purchases.

Second, focus on community-building. Lululemon fosters loyalty by creating a lifestyle brand, offering yoga classes and local events that strengthen emotional connections. People don’t just buy leggings; they buy belongings.

Finally, commit to authenticity and shared values. A 2022 study found that 82% of consumers prefer brands whose values align with their own. Patagonia’s environmental activism, for instance, has turned its customers into brand advocates.

Loyalty isn’t dead—it’s just transformed. To thrive, brands must go beyond transactional relationships and design experiences that keep customers coming back not out of convenience but out of genuine preference.