Brand Loyalty Drives 25% Price Premium: UserTesting Study

A recent UserTesting study reveals that strong brand loyalty allows companies to command a significant price premium. Over two-thirds of consumers in the US, UK, and Australia are willing to pay approximately 25% more for products from their favorite brands.

Key Drivers of Brand Loyalty

  • Positive customer experiences
  • Consistent product quality
  • Long-term brand familiarity

According to Bobby Meixner, UserTesting's Senior Director of Industry Solutions, "Price matters, but it's not everything. In today's market, customers stay loyal when brands create experiences that feel personal, reliable, and rewarding."

"During periods of financial strain, consumers are less willing to take chances. They're focused on value and experience — and they're willing to spend more if they trust a brand to consistently deliver on its promise," Meixner added.

Study Methodology and Findings

UserTesting, with support from Talker Research, surveyed 4,000 consumers across the US, UK, and Australia. The study found that 4 out of 5 US consumers can name at least one brand they feel loyal to, with the average person remaining loyal to six brands. Top loyalty categories include grocery and food, clothing, footwear, phones, and electronics.

Nearly three-quarters of US consumers indicated they would continue purchasing their preferred brands even if prices increased significantly. Consumers demonstrated the highest price tolerance for gaming, jewelry and watches, and fitness brands.

While brand loyalty is strong, the study also highlights potential breaking points. Consumers might switch brands if a competitor offers a superior product or if their preferred brand fails to deliver consistent value.

Nostalgia and the Customer Experience

The study found that nostalgia plays a role in brand loyalty, with 71% of US consumers more likely to buy from brands associated with childhood memories. However, while nostalgia can be a powerful tool, consistent positive customer experiences remain paramount.

UserTesting concludes, "For brands looking to build long-term customer relationships, the lesson is simple: invest in customer experience, maintain consistent quality, and engage authentically with your audience. Those that do will create customers for life."