Schneider on Loyalty

Inventing the Future of Loyalty...

Are unexpected brands the new loyalty leaders?

Brand Keys has published their 2025 list of one hundred leaders in brand loyalty. Some of the brands cited are perpetual leaders, while others have made leaps up the list, some are newbies, and some may indicate shifts in the loyalty landscape.

Robert Passikoff, Brand Keys president, as reported by MediaPost, “Sees all these shifts as proof that the loyalty game itself is evolving. Instead of static programs or points systems, AI and digital ecosystems are enabling adaptive loyalty experiences — anticipating mood, context, and life stage in real time.”

“Brands that deliver interaction, personalization, and emotional resonance win,” said Passikoff.

For years we’ve been seeing the evolution of loyalty from what Passikoff calls “static programs” to engaging, experiential ecosystems driven by data and delivered by smart phone technology. Brand Keys cites McDonald’s – which rose in their index from number 31 to the number twelve spot over the past year – as having a robust app that unites ordering, payment, gamification, and loyalty perks. That’s a great example of a successful contemporary loyalty program.

Amazon, at the number one position, has Prime, which we consider one of the greatest loyalty programs of all time. The program’s penetration of US households is just a fraction below 80%.

But the list of one hundred brands, across numerous verticals, includes some names we think require a bit of nuance before we can agree that they are loyalty leaders.

There are a number of subscription / auto-renewal services, from telecom to streaming to insurance. And while that business model is a great driver of customer longevity, it is the model itself that drives “loyal behavior.” It’s easy to be loyal when you’re locked in and there is a penalty for – or great inconvenience in – switching. Then there are companies that enjoy a near-monopoly in their category. With Google capturing nearly 90% of all global search traffic, we would suggest ubiquity, rather than loyalty, is at work.

And without being judgmental, there are some brands on the list – like TikTok and YouTube – that have what many would call addiction to thank for what appears to be loyalty. The compulsive bond between teens and screens is a matter of concern to many health experts (and parents). Pew research finds 63% of US teens visit TikTok daily and over 90% use YouTube, with one in five describing their use of the platforms as “almost constantly.”

AI brand ChatGPT debuts on the list at number eight, raising more questions. MediaPost says, “ChatGPT’s rapid rise proves consumers can form loyalty bonds with AI companions as quickly as with entertainment platforms or favorite foods.” Depending on your point of view, the quick adoption of “bonds with AI companions” may not be seen as positive.

Taking a nuanced look at the list of loyalty leaders, we can see that many factors drive “loyalty,” including habit, convenience, ubiquity, the exercise of near-monopoly power, even compulsive behaviors.

Against these currents swim a number of consumers who shop with their conscience and their wallet, considering values as well as value. These are the folks who avoid or choose brands based on political, social, moral, or environmental concerns. For those customers, these considerations can build loyalty to brands that better align with the customer’s values.

To build effective bonds, brands must consider many factors, and sometimes make hard decisions about how to weigh each one. Loyalty is a complex phenomenon, and the one certainty is that brands must be true to themselves and their customers to drive meaningful (and profitable) engagement. Your thoughts?

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