There are actually more than two common types of customer loyalty, but two of the most fundamental are:

• Transactional Loyalty: This type of loyalty is based on repeated purchases and is often driven by factors like convenience, price, or rewards programs. Customers who frequent a store because it’s close by or offers a loyalty program with points or discounts exhibit transactional loyalty.

• Emotional Loyalty: This type of loyalty goes beyond transactions and is built on a deeper connection with the brand. Customers who are emotionally loyal feel a sense of attachment to the brand, its values, or the experience it provides. They may be willing to pay a premium or recommend the brand to others even if there are cheaper alternatives available.