What Is Brand Loyalty And How To Build It
Tips / 29.08.2024
Consumers nowadays have millions of choices when it comes to online shopping. With a vast range of brands competing for attention, standing out from the crowd as a business can seem like a mission impossible.
The good news is that no matter whether you’re a large corporation or a small business that’s just getting started, you can turn things around with brand loyalty.
In the following sections, we explore what is brand loyalty in detail and offer practical suggestions on how to build brand loyalty for your business.
TABLE OF CONTENTS
What is brand loyalty?
In essence, there are two core types of loyalty – brand loyalty and customer loyalty.
Unlike customer loyalty, which concentrates on spending, brand loyalty is all about the perceived value of a company in the minds of consumers. It’s based on things like brand values, product quality, and all that your brand represents.
Building brand loyalty for your business is vital for growth and success as it helps create an emotional connection and a commitment towards a particular brand among consumers. It helps land repeat business, spread word of mouth about your products and services, and more. Overall, it enables businesses to stand apart from others in the digital and physical battleground.
In short, brand loyalty can help you achieve:
- Stable revenue;
- Cost efficiency;
- Competitive advantage;
- Brand advocacy, and more.
Below, we share valuable tips and tricks on building brand loyalty for your company.
How to build brand loyalty with your customers
No matter whether you run a large or small business, establishing your brand’s values and building brand loyalty is a strategic and results-proven technique.
However, getting started can be a bit of a challenge.
Deliver exceptional customer service
When building brand loyalty, one of the first factors to consider is excellent customer service.
Why?
Because more than half of global consumers believe customer service is crucial to brand choice and loyalty. Offering outstanding customer service builds customer trust and encourages consumers to keep coming back for more.
After all, it’s easy to fall in love with a brand that always has your back, provides instant responses, offers immediate problem resolution, and communicates in a kind and professional manner. To enhance this part of your business, make sure you have a strategic and well-prepared customer service plan.
Note that experienced customer service agents can help you dramatically increase brand loyalty. For example, you could hire a customer service agent for the different platforms that you use to communicate with users and shoppers.
Make sure that you personalise this experience as much as possible for the shopper, addressing them by name, remembering their preferences, and offering them a bespoke solution based on their core needs or challenges.
![Brand loyalty is built with high quality products](https://i1.wp.com/blog.mypos.eu/wp-content/uploads/2024/08/high-quality-products-for-brand-loyalty.jpg?resize=750%2C500&ssl=1)
Create high-quality products
Another guaranteed way to build strong brand loyalty is to simply offer products that consumers can’t resist.
Poor product quality is one of the biggest factors that influence the decision to switch brands. It can lead to losing hard-won shoppers and compromising your competitive edge in your niche.
To avoid this, make sure that you invest time and resources into researching your market in-depth, uncovering all that your target audience needs, prefers, and desires.
Remember that building your products shouldn’t be a reflection of your personal visions and preferences. Instead, it should mimic all that your ideal customers want to see – reliability, durability, and satisfaction.
When creating high-quality products, concentrate on things like:
- Ease of use;
- Design;
- Functionality;
- Durability;
- Comfortability, etc.
Note that the essential factors to assess will vary depending on the type of products or services you offer. Offering quality won’t just build brand loyalty but will also inspire your customers to turn into advocates and share their positive experiences with others.
Develop a strong brand identity
You can think of your brand identity as your brand image – everything that helps create your brand’s reputation on the market. By creating a powerful brand identity, you’re ensuring that your shoppers remember your brand and feel comfortable and safe when purchasing from you.
Make sure that your brand personality is properly managed and is consistent throughout platforms and channels like physical stores, online shops, email marketing, social media, and others.
To create a successful brand that best fits your business, be strategic about the selection of logos, colour schemes, and messaging. Make sure these assets resonate with your target audience and help portray your business values, mission, and objectives.
Engage with customers regularly
Many businesses, both large and small, keep losing customers as a result of poor or insufficient marketing communications. In a digital world where we’re constantly bombarded with information, it’s incredibly difficult to drive brand loyalty without quality and regular engagement.
To make sure that your shoppers remain loyal, you’ll need to put in the effort and demonstrate that your business deserves their time, attention, and money.
When it comes to customer engagement, some of the core aspects to consider include:
- Social media interactions – post consistently, try to respond to comments on time, take an active part in conversations, and be as open and transparent as possible about your production processes, product lines, and more.
- Email newsletters – engage with your customers and stay connected via well-organised email newsletter campaigns. Provide valuable content, personalised messaging, and pamper shoppers with things like birthday discounts and customised recommendations.
- Blogging – although blogging doesn’t entail personal communications with shoppers, it’s a great way to educate your consumers and create a feeling of consistency. Diversify the topics that you cover by focusing on industry updates, company news, informative content, and more.
- Live chat support – provide instant assistance and give your customers peace of mind knowing that they can contact you at any time by implementing live chat support tools and instant messaging. With the help of AI, offering this extra layer of comfort and convenience has become easier than ever.
These are just a few examples of how you can stay in contact with your shoppers and create consistent engagement. Create an engagement strategy that works best for your business, acknowledging the differences between your customer groups.
Implement a customer loyalty program
Loyalty programs are also among the proven marketing strategies for building brand loyalty and making existing shoppers feel appreciated and valued. The good news is that loyalty programs are also much more cost-effective for businesses when compared to attracting new customers.
There are plenty of different loyalty programs that you can choose from. It’s essential that you select the model that fits your business best.
For example, point-based initiatives reward loyalty program members for each purchase, while tiered rewards programs incentivise them with escalating giftcards or discounts for higher spending.
Subscription programs are also incredibly popular, pampering customers with exclusive benefits against a recurring fee. Although in this case redeeming rewards isn’t directly part of the deal, in some subscription programs loyal customers receive much more value and enjoy exclusive treats.
Towards the end of this article, we’ll look at some of the most successful brand loyalty examples, showcasing how loyalty programs have contributed to the success of these brands.
![Encourage customer feedback for brand loyalty](https://i1.wp.com/blog.mypos.eu/wp-content/uploads/2024/08/brand-loyalty.jpg?resize=750%2C500&ssl=1)
Encourage and reward customer feedback
While loyalty programs are an ideal way to reward your loyal customer base, it’s also important to consider rewarding those that take the time to leave reviews and provide feedback on your products or services.
Showing customer satisfaction stories is a powerful way to build trust and stand out from the crowd. However, receiving negative reviews can be equally as important.
Why?
Because it’s the only way to truly understand the negative aspects of your products or services.
By acknowledging these negative experiences and pinpointing the reasons behind them, you can make amends and improve your offering to exceed the expectations of shoppers. Ultimately, customer feedback can equip you with everything you need to offer unmatched quality in the future.
Encourage customers to leave honest reviews and share their experiences with your brand via emails, a rewards program, social media polls, and surveys. Reward them for their time with discounts, coupons, or public recognition.
This approach will not only incentivise your shoppers to keep giving your feedback but will also demonstrate that you value your customers and are interested in what they have to say.
Offer personalised experiences
More than 80% of consumers expect personalised experiences from brands that they’re loyal to. In addition, 31% of shoppers state that personalised shopping experiences are the reason they stay loyal to a brand.
Without a doubt, this position creates positive customer experiences at the forefront of brand loyalty. But keep in mind that personalisation goes beyond addressing customers by their name in an email. Instead, it’s all about crafting a truly tailored journey when communicating with your brand of shopping from your store.
Acknowledge their preferences, analyse their purchase history, and get to know more about their behaviours. By using this information, you’ll be able to provide personalised product recommendations, make special offers based on individual behaviour, and share content that resonates with specific customers.
Some of the most successful brands in the world prioritise personalised experiences, allowing them to establish deeper emotional connections with users, ultimately driving brand loyalty and higher customer lifetime value.
Build a community around your brand
Creating loyalty to a brand is also related to growing a community of like-minded people who have a preference for one brand over another.
In today’s highly dynamic and interconnected world, more and more consumers rely on digital platforms to connect and exchange information with others. Naturally, brand communities open the doors to exciting opportunities for companies to cultivate shopper royalty.
Uniting people with a preference for the same brand is a powerful way to strengthen consumer trust. It’s also an intelligent approach to finding more about some of the most popular topics, questions, or concerns your shoppers may have with your products or services.
Encourage your fans to engage with you by creating brand communities. Let those with an interest in your brand ask you questions, share stories, provide feedback, and more.
You can do so by creating engaging content that triggers conversations and connections. You can also organise live events, Q&A sessions, and interactive polls. Not to mention that you can take advantage of brand ambassadors and brand advocates to get the conversation started.
Provide exclusive offers and discounts
In the previous point, we mentioned that personalisation and exclusivity are proven paths to customer retention. But regardless of whether you have advanced personalisation strategies in place, encourage repeat purchases by simply offering special discounts and offers to consumers.
Naturally, this will make them feel valued and will position your brand at the top of their shopping priorities.
For example, one way to approach this part of brand loyalty building is to reward loyal customers with a unique offer, deal, or coupon. Pamper them with a VIP experience with your brand and incentivise them to continue shopping with your brand.
Where possible, consider partnering with other popular brands in your area to provide joint promotions or bundled deals. This can be an incredibly helpful tool to grow your popularity, especially if the selected partner brand targets the same customers as you.
Measure and analyse customer loyalty metrics
The truth about brand loyalty is that it’s merely impossible to create a large loyal customer base without data collection and analytics. Just like in any other digital marketing strategy, tracking your progress is crucial.
To measure brand loyalty, we recommend monitoring the following metrics:
- Repeat purchase rates;
- Customer lifetime value;
- Net promoter scores;
- Churn rate;
- Customer retention rate.
These insights will allow you to understand how many brand-loyal customers you have, how they’re interacting with your company, and how you can encourage them to stay longer and spend more.
Identify patterns and trends, which can help you make informed decisions and focus on areas that require your efforts and focus the most.
![Adapt to customer needs and build brand loyalty](https://i2.wp.com/blog.mypos.eu/wp-content/uploads/2024/08/how-to-build-brand-loyalty.jpg?resize=750%2C500&ssl=1)
Adapt to customer needs and preferences
Needless to say, customer values and customer expectations constantly evolve, influenced by political factors, market trends, social changes, and more.
But to offer a stand-apart customer journey and establish an emotional connection that will inspire your shoppers to stay loyal to your brand, you’ll need to quickly adapt to the shifts in customer preferences and desires.
It’s crucial to maintain the ability to align your products and services with what your customers want. Keep your ear to the ground by conducting ongoing surveys, staying active on social media, and observing.
Where necessary, improve your products, launch new releases, or add must-have features to stay competitive. This demonstrates your dedication and willingness to continue evolving to meet shoppers’ demands – a key driver of brand loyalty.
Focus on long-term customer relationships
Don’t underestimate the power of existing customers.
Studies reveal that companies have between 60% and 70% chances of selling to existing clients, while there’s only a 5% to 20% chance of selling to new customers. The ability to retain customers loyal to a certain brand speaks for long-term strategic thinking.
Instead of concentrating entirely on immediate transactions and quick gains, focus on nurturing relationships over time. This can be done through excellent customer service, offering quality products, personalising the experience, and offering special discounts and offers.
The best way to build lasting relationships with shoppers is to keep them constantly engaged with your brand. Offer different types of content, pamper them with rewards, and most importantly – show that you know them better than any other brand and can offer exactly what they need.
Stay innovative and relevant
Secure future purchases by staying innovative and relevant in your market. Make sure that you’re in turn with the ever-changing needs of your customers. Assess what other brands in your space are doing differently and seek inspiration from models that already work.
Keep in mind that thanks to technological advancements, the business world is moving quicker than ever. Markets are drastically changing by the day, ultimately pushing shoppers to change their habits, preferences, and desires when it comes to shopping. Dedicate a portion of your marketing costs to collecting data on market trends and forecasting or predicting future innovations.
Brainstorm how you can align your brand with these upcoming changes to ensure that you sustain your brand loyalty among consumers.
Celebrate and appreciate loyal customers
Last but not least, do your best to make your customers feel valued at every occasion you have.
Research shows that 65% of a company’s revenue comes from repeat customers. Celebrating loyal customers not only reinforces their connection to your brand. It also fosters a sense of belonging and exclusivity.
To build brand loyalty by celebrating customers, you can create customised thank-you messages, personal shout-outs on social media, or thanking your customers by name publicly.
Brand loyalty examples
Now that we’ve covered the basics, let’s look at a few examples of brand loyalty from around the world.
Apple is one of the world’s most eminent brands, with exceptional levels of brand loyalty. In fact, according to research, the company’s Net Promoter Score is 52 – a sign of incredibly high brand loyalty, indicating how likely it is for consumers to recommend the brand to others.
This tremendous success stems from several techniques:
- First, Apple’s product quality is described by some as unbeatable, with products that feel nothing like anything else.
- Second, the brand fully appreciates how essential it is to properly connect with its customers on a personal level. Instead of promoting the technical specifications of their products, Apple concentrates on the experience.
- Third, Apple is known for surprising their customers with exciting new releases and keeping them secret until the time of the official announcement – a long-awaited moment for Apple users.
Another example of outstanding brand loyalty is Nike – the brand that ranks #7 in Comparably’s list of best brands around the world.
You don’t have to be a sports maniac or a professional athlete to recognise Nike’s powerful brand image. With a memorable logo and a hard-to-forget tagline, this brand lives rent-free in our minds.
Nike also concentrates on emotional connections and offers motivation and encouragement to consumers. They’ve diverse in their social media content, encourage shoppers to share stories and experiences with the brand, and are also on-point with the latest trends.
Conclusion
If you’ve gone through the rocky path of attracting customers to your business, don’t let your efforts go to waste.
Instead, secure repeat business, form lasting relationships with your shoppers, and build brand loyalty that will keep rewarding you over time.
By implementing the tips and tricks we shared above, you can grow your business to unimaginable heights, enjoying the stability and satisfaction brand loyalty offers.
Frequently Asked Questions
What’s the quickest way to build brand loyalty?
Building brand loyalty is a long-term process that requires time, effort, analytical thinking, and preparation. Although there isn’t a short part to building brand loyalty, by implementing the core principles and proven methods listed above, you can start noticing improvements in your customer retention.
Can brand loyalty help in an economic crisis?
Yes, customers with strong brand loyalty are more likely to stick with a brand during difficult times. Even if the crisis isn’t economic but related to a company mistake, they are often more forgiving and willing to wait for the brand to make improvements, demonstrating the long-term value of cultivating loyalty.
Can brands recover lost loyalty after a negative experience?
Yes, they can, by ensuring transparency, accountability, and a genuine effort to make things right. Apologising for mistakes, offering compensation, and demonstrating a commitment to improving can help rebuild trust. Brands can also invite feedback on how they can do better, showing that they value customer input.