💡 When Convenience Is Mistaken for Loyalty: The Hidden Friction in Customer Experience

Why Habit Isn’t Loyalty - How Brands Create Barriers to Change and What It Really Takes to Inspire Devotion

We get used to a certain brand. Maybe it’s the coffee shop that remembers your order, the car you’ve driven for years, or the software platform that sits quietly on your desktop. Sometimes it’s the route you drive to work, not because it’s fastest, but because you know every stoplight and pothole. Over time, these preferences become routines, and those routines harden into habits.

But what’s behind these habits? Is it genuine loyalty, or the subtle friction that makes switching feel overwhelming? Think about the last time you considered changing your computer. You weighed the hassle: transferring files, relearning shortcuts, figuring out a new system, and making sure all your accessories still work. The cost to change - time, energy, learning curve - can be higher than the cost to stay, even if you’re not truly satisfied.

Brands know this. They build entire business models on our resistance to change, quietly stacking the deck in favor of inertia over intentional loyalty:

• Trade-in offers and “help converting” that seem like shortcuts, but mask the real pain of switching and getting even more challenging with each successive platform or product launch.

• Upgrades that make your old device or subscription feel outdated - not because it’s broken, but because the ecosystem nudges you forward. Planned obsolescence, but without the reward for upgrading.

• Loyalty programs that shift their rules or devalue your points, pushing you to spend more or differently just to “keep up.”

• Customer service that makes you shout “AGENT” over and over, only to be told that a discount that didn’t work on your purchase is your fault, not theirs.

• New customer deals that shower fresh faces with bonuses, while those who’ve been with a brand for decades are left with business as usual.

• Subtle neglect - like slower service, shrinking perks, or higher prices that quietly encourage less profitable customers to move on, regardless of loyalty to the brand.

Is this the mark of a brand earning devotion, or simply the mechanics of making change inconvenient? Have companies begun to confuse our inertia with true commitment?

The Loyalty Illusion: When Habit Masquerades as Affection

Researchers are increasingly skeptical of what brands call “loyalty.” The 2023 Forrester Customer Experience Index reveals a striking pattern: industries with the highest switching costs - banks, telecoms, cable providers - boast high customer retention, but low emotional loyalty. Retention, in these sectors, is more about the headache of leaving than the joy of staying.

A Harvard Business Review article (“Why Your Loyalty Program Isn’t Working,” 2023) spotlights the danger: “When brands invest more in acquiring new customers than nurturing existing ones, it creates an environment where loyalty is a byproduct of hassle - not admiration.” The data echoes this. Accenture’s global survey (2023) found that 76% of consumers believe it’s easier than ever to switch brands, but most still don’t - citing confusion, time, or the fear of losing accumulated rewards as the real deterrent.

So, loyalty in today’s market isn’t always about preference. Sometimes, it’s just exhaustion.

How Brands Engineer Friction - And What That Costs

Look closely at your digital life. Have you tried to move your data to a new laptop, only to hit snags with incompatible accessories, confusing setup processes, or the need to repurchase apps? Have you shopped for a new audio brand, only to discover you’ll have to replace every charger and headset in your home?

Streaming services and mobile carriers are notorious. While new customers enjoy a buffet of sign-up bonuses and discounted rates, loyal subscribers often get left behind, stuck on legacy plans, watching as perks evaporate and prices inch upward. The Wall Street Journal (March 2024) called this the “loyalty penalty” - a system where sticking around costs you more than being a newcomer.

Retail loyalty programs add another layer. Points expire, tiers get recalibrated, and “exclusive” benefits seem to lose value over time. The 2024 J.D. Power Retail Banking Study found a sharp drop in customer satisfaction when long-term patrons discovered that their history meant less than what a new customer could get with a quick sign-up.

And sometimes, companies simply “fire” their customers through neglect: reducing rewards, making it harder to access help, or quietly tightening return policies, pushing people out without ever having to say goodbye.

The Real Risk: Silent Attrition and the Erosion of Trust

The risk of confusing convenience with loyalty isn’t just academic. It’s existential. When brands rely on friction-heavy retention - making it harder to go rather than easier to stay - they may hold onto customers in the short run, but erode trust over time. Silent attrition builds beneath the surface, as customers who feel trapped become less engaged, more likely to vent online, and ever more open to disruption.

The “streaming wars” provide a cautionary example: price hikes and shrinking libraries have sparked waves of quiet quitting, even among long-term subscribers. Airline and hotel programs - once envied for their perks - now see public backlash when loyalty rewards are slashed and true fans feel abandoned. McKinsey’s 2024 research finds that when a disruptor removes friction, making it easy, even delightful, to leave, the illusion of loyalty can evaporate overnight.

Toward True Loyalty: Earning, Not Assuming, Devotion

What, then, does real loyalty look like? It’s not engineered by making the exit harder, but by making the stay rewarding.

• Costco is a model of this. Others compete on price and selection, and Sam’s Club has continually advanced its technology to enable a smoother customer experience, but Costco has built a reputation for reducing friction, hassle-free returns, consistent value, and constant improvements for members. Renewing isn’t just a habit; it’s a vote of confidence.

• Trader Joe’s bucks the trend entirely: no digital loyalty programs, no app gamification, just the thrill of discovery and the warmth of human interaction. They inspire fans who share their latest finds on social media - not because they’re paid influencers, but because they’re genuinely excited. Trader Joe’s proves you don’t need complex tech to earn true loyalty; you need to make people feel seen and delighted.

• Gymshark, an emerging fitness retailer, has built a cult following not just through innovative products, but by turning every store opening into an event - fans line up for hours, drawn by the sense of community, not just the merchandise.

• LEGO has transcended products to become a community. Through clubs, events, and collaborative experiences, LEGO isn’t just selling bricks - they’re building belonging. Their brand has expanded by making customers feel like co-creators, not just consumers.

True loyalty is built by reducing friction and adding value, by recognizing that retention is earned every day. These brands don’t just ask for our repeat business—they give us reasons to choose them, again and again, even when switching would be easy.

Questions We All Should Be Asking

As retailers and brands, are we rewarding routine, or creating real reasons to stay? Are we making it easy for our best customers to feel valued, or just hard for them to leave? When it costs exponentially more to attract new customers, are we making the investment to ensure that our current customers always feel loved?

As consumers, is this a brand you love, or just a habit that’s hard to break? When you look at your loyalty programs, your subscriptions, your go-to brands - do you feel seen, or just stuck? Are you staying for the perks, or simply because it’s easier than starting over?

The answers shape the future of loyalty, one that’s built on trust, value, community, values, and genuine connection. And the real cost of confusing convenience with loyalty may be higher than brands - and customers- truly realize.

(To be continued…)