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Do Not Confuse Customer Loyalty with Customer Satisfaction


A customer visits an e-commerce shopping website of a specific brand and checks the apparel section to purchase a pair of jeans. After selecting a pair of jeans, he completes the payment process. The ordered product got delivered to him within the given time. He is very happy. After couple of days he again returns to the website of the same brand to make some purchase again.


So is the customer loyal to that brand? Or is he simply a satisfied client? Is there any comparison between loyalty and satisfaction? What’s customer loyalty and retention is all about? Let’s find it out!

What Loyalty and Satisfaction mean exactly?

Customer Satisfaction measures the degree in which a specific service or product meets a client’s expectations. It’s basically a self-reported measurement or the personal opinion a customer has towards a brand or company. The more satisfied the customer is, the happier he is with the brand or the products purchased or services obtained.


On the other hand, in answering to what is brand loyalty we can say that it is the customer’s intention or likeness to purchase again from the same brand or business. Though customer satisfaction and loyalty may look quite similar (since satisfied customers also more likely to return and purchase again) but they are actually different.


Basically a person who is loyal to your brand, may become your brand ambassador. Your loyal customer himself will tell other people about your brand and this may lead to more sales conversions. Through word of mouth, automatically you will gain brand recognition among others. So building customer loyalty is very important.

So what’s the difference?

Let’s use the same example from above. The customer is satisfied with the specific brand. Now loyalty only enters into the scene when a different apparel brand comes into the picture offering the same jeans under its own brand label at a discounted price and yet the customer continues to purchase from the same brand as before.


Here in this scenario, the customer gets the chance to buy the same jeans at a discounted price, but he chose to return to the same brand for purchase- so this called customer loyalty.



How to measure customer loyalty and satisfaction?

Though customer satisfaction is measured against the benchmark of your customer’s expectations, still there are number of factors though directly not related with business, may influence this aspect.


For example, in a bad mood, customers may not be satisfied with your brand or when they expected a level of service for which your business is known for but had failed to fulfil their expectations and many more. Basically customer satisfaction level is measured through a set of questioners and surveys.


If you are using Live Chat Software, its ‘Chat Rating’ feature enables you to find out the satisfaction level of your customers. With this feature, after the completion of each chat session you can ask your customer to rate your support service. It’s a quick and easy way to gauge the overall customer satisfaction level.


In comparison to customer satisfaction, businesses measure customer loyalty through market research surveys and observations.

How your company may get benefited by customer satisfaction and loyalty

Your satisfied customers will promote your brand through word-of-mouth because satisfaction is something people always talk about.


On the other side, loyal customers directly engage in repeat purchases thus translating words into actions. The best part in loyalty is your loyal customers will always purchase from your brand without going around for the best deals or discounts. Your die-hard customers will insist their friends and family to purchase from you.


Thus it also helps in enhanced revenues. Loyal customers also are much cost efficient as they are already familiar with your brand- thus they don’t require much assistance, introductions and free trials.

Numbers don’t lie

Acquiring new customers costs 5 time more than retaining old customers. So it’s financially wiser for brands to work hard in building customer loyalty and retaining satisfied clients rather than giving huge efforts to attract new customers.


Though your satisfied customers may not be the loyal ones but they are obviously in the long journey towards customer loyalty and retention. Your satisfied customer may not always happy with your brand (it’s just that he/she didn’t find anything wrong), but still will speak positively and return for repeat purchase (only in the absence of other direct competitor).


It’s not only enough to know the benefits of having satisfied and loyal customers. You should also know the ways to transform your regular customers into raving fans. Here the key to success is providing excellent customer support.


So try to provide such an excellent support service to your customers that they will never forget.Live chat can help you out with this. So start using live chat and see the difference.


Recommended for you:  How Importance of Customer Loyalty Impacts on Your Brand Image

Author’s Bio

Suvashree is responsible for handling the website content, blog and social media marketing activities at REVE Chat. Graduated in English literature, she has done her Masters in Journalism and Mass Communications. Her interests include reading, painting and travelling.

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