As people know, I’ve enjoyed horse racing for the better part of 30 years or so, going to races all over the world, but in particular, the Breeders Cup, which is held in different locations every year throughout the U.S. One of the jockeys I root for has had a mount all year on one of the contenders for the Breeders Cup Classic, which is the event’s premier dirt race for older horses.
He’s done well on the horse. Three Grade I victories (the highest level in the sport), including top races such as the Preakness, the Haskell, and the Santa Anita Derby. His two second-place finishes on the horse: The Kentucky Derby and the Pacific Classic. In both cases, he was clearly beaten by a better horse that day.
Despite the success he’s had and his familiarity with the horse, the owners last month decided to move on from him. To try to tap one of the top-earning jockeys in the U.S. (The jockey I root for is a great jockey, but not considered nationwide “one of the top 10.”)
I heard a lot of conversation around that: “Oh, business is business.” Or “It’s their right as owners.”
Yes, all true. But the move by the owners was disappointing.
Because if someone does a good job for you and has been loyal to you, shouldn’t you reward them by reinforcing that back to them? Otherwise, who is going to be loyal to you when you might need it?
It’s not just wealthy people, though the rich today don’t exactly model ideal behavior in this area. A lot of it, I think, has to do with the fact that people are generally more entitled than ever. Indeed, many “consumers” feel they’re owed something more by others and by companies, and will be similarly opportunistic when it comes to their choices, not seeing the need to stay loyal to a single brand.
The data bears this out.
Customer Loyalty Surveys Paint a Pretty Bleak Picture
According to a recent SAP report, in 2025, loyalty to known brands is in decline. True Loyalty dropped by 5% from 2024 to 2025, the most significant drop since the company started its Customer Loyalty Index (CLI). Furthermore, according to Forrester, brand loyalty is predicted to decline by 25% this year, with 75% of customers ready to abandon programs for better prices.
While lower loyalty metrics look bleak, they’re not inevitable. They represent an opportunity for organizations to re-earn customer trust in a more discerning and data-rich environment. As the SAP study notes, consumers today aren’t against loyalty—they simply need clearer reasons to stay. So, what can businesses do in an era when loyalty seems harder to keep than ever?
What can businesses do in an era of declining loyalty? Here are a few thoughts from us.
No. 1: Lead with Real Company Values
The research is clear: shared values are now one of the top drivers of customer loyalty. A 2025 Brandmovers study found that 71% of consumers consider values alignment “very important” in deciding whether to stay loyal, up 23% since 2021. Similarly, other studies have shown that authentic social and environmental action—such as sustainability or DEI initiatives—significantly boosts retention.
Think about brands such as REI, which has excelled by letting customers participate in causes they care about. Customers today can spot superficial “values signaling” quickly, so the lesson is to make your company’s expressed values actionable. That means aligning not just messaging—but operations, giving, and partnerships—with what your audience believes in.
For small and mid-sized businesses, this might start with transparency: highlight local sourcing, fair labor practices, or community investment. Loyal customers want to feel proud to support you. If you can show consistency between what you say and what you do, you earn trust that discounts alone can’t buy.
No. 2: Personalize Outreach
In a recent post, we talked about the importance of integrating your systems. Why? Because integration allows you to better personalize your outreach. According to the McKinsey State of CX 2025 and CMSWire’s Personalization Nation report, 71% of consumers expect personalized interactions, while 76% feel frustration when companies fail to deliver them. In general, customers are more likely to remain loyal when brands personalize experiences, with more than half staying loyal to brands offering tailored experiences.
But here’s the key: It’s not about superficial segmentation or automated email “Hi {FirstName}” campaigns. Real personalization means using data to serve relevant offers, anticipate customer needs, and show empathy through timing, tone, and channel. Integrating CRM, purchase behavior, and feedback data can help mid-sized brands act more like enterprise-level marketers, building human connections through AI-assisted insight.
No. 3: Make Customer Service Your Competitive Edge
Customer service remains the linchpin of lasting loyalty. Nextiva’s 2025 Service Trends Report found that 91% of customers are more likely to buy again after a great service experience, and even a 5% increase in retention can raise profits by 25%. The same study revealed that 63% of customers expect service agents to already know their previous interactions, underscoring how personalization and service intersect.
Loyalty begins with responsiveness. Simple gestures such as proactive communication when issues arise, or rewarding patience during delays, or simply providing reassurance that your customers know that you’re on top of any issues or know where they are in any process, can turn frustrations into emotional loyalty.
A key here: Just reassure your customers you know who they are, where they are, and how they’re doing in any part of the buying or post-purchase process.
No. 4: Use Discounts Strategically, Not Habitually
Discounts have their place, but they’re often overused. According to Tealium’s 2025 Loyalty Crisis Report, 75% of consumers will switch brands for a better price, proving discounts can trigger short-term attraction but weaken long-term retention. Similarly, it’s long been known that frequent discounts may train consumers to wait for deals, cheapen brand perception, and certainly erode margins.
If you do offer discounts, make sure to reserve your best promotions for your most loyal customers. Tie discounts to loyalty status or exclusive events. This creates a virtuous cycle: a feeling of privilege and progress, not expectation. Instead of blanket sales, try curated offers (e.g., “private early access” or “VIP pricing”) that build belonging without racing to the bottom.
Conclusion
At Marketing Nice Guys, we’ve been grateful for the loyalty of the many businesses that have stuck with us over the years. And in turn, we can help you with loyalty strategies or other marketing efforts that will actually move the needle. Contact us today for a free consultation about any of your marketing challenges.
