Although the terms “customer loyalty” and “customer retention” are often used interchangeably, they actually refer to two different things. Customer loyalty refers to customers who have decided to continue to do business with a brand as a preference over that brand’s competitors, i.e., they are loyal to the brand. An example would be a person that prefers McDonalds over Burger King, Wendy’s and Checkers.
Customer retention, on the other hand, is simply a measure of whether or not a customer intends to continue to do business with a brand. That may be because the brand’s products are cheaper, they are located closer than other brands, or they are more convenient.