Image Source: https://www.inc.com/peter-roesler/how-to-build-brand-loyalty-in-customers-in-2017.html
So, the question would be: Would you want customers to love your brand, talk about your brand, and come back again and again and again or have those waiting for that next deal to jump ship? I thought so. Brand loyalty is one of those not-so-secret ingredients that really converts a one-time buyer into a lifetime fan. It’s more like running the VIP club where your customer feels special and will come back again and again.
We throw around the term “brand loyalty” pretty loosely, but what does it really mean? Why do we care? Most importantly, in a world of consumers whose attention span is like that of a goldfish and where choice is overwhelming than it has ever been, how do we get there?
Alright, let’s get real. So, what in the world is brand loyalty? Why does it have to become the lifeline of any successful business? What are some concrete steps that you can take toward creating a brand people simply cannot help but love?
What is Brand Loyalty?
So, let’s go back to the basics: Brand loyalty is that emotive attachment or preference of a customer towards your brand compared to all the other brands in the same category. It is the choice of the customers choosing you because they find a reason to connect with your brand and not because you are cheap, or because some flash sale has come by, but rather because they find a reason to connect to your brand. That’s the simple shortcut: trust, belief, and more than the others, they would prefer you.
Image Source: https://www.gillsolutions.com/blog/brand-loyalty-influences/
There are two forms of brand loyalty: behavioral and emotional.
- Behavioral Loyalty: You continue to get repeat streams of orders from this customer due to nothing but pure inertia. He buys the same brand of toothpaste for decades-not because he loves the brand but because it so happens to be the most convenient.
- Emotional Loyalty: Things are about to get real. Emotional loyalty is not buying out of habit; they have an emotional stake in your brand and will defend you on social media during a comment war. They will tell their friends that you are great and forget some minor screw-up because they believe in the greater good of what you represent.
Brand Loyalty Spectrum (Yes, it’s a thing!)
| TYPE | DESCRIPTION | EXAMPLES |
| NO LOYALTY | Customers don’t care who they buy from | Generic grocery brands |
| BEHAVIORAL LOYALTY | Customers buy out of convenience, not love | Household necessities like detergent or paper towels |
| EMOTIONAL LOYALTY | Customers are genuinely passionate about the brand | Apple, Nike, Starbucks |
Why Brand Loyalty Matters (Hint: It’s Not Just About Sales)
A thought may occur to you, “So isn’t brand loyalty just a nice extra bonus?” No ways. Brand loyalty is everything. Here’s why:
- Loyal Customers Spend More
Fact check: It is estimated that to obtain a new customer it is five times more expensive than it does to retain an existing loyal customer. Loyal customers are retained for a longer period, and also they spend more. It is believed that in most instances, the top 10% most loyal customers spend thrice more than the other customers.
- Word of Mouth
Chances are that you’re aware of “word-of-mouth marketing.” Loyal customers aren’t just the closest thing your brand has to walking, talking billboards; they’ll sing your praises to friends, family, and even total strangers on social media without you spending a penny.
- Hanging Around in Bad Times
When the hour of crisis comes, your loyal customer nowhere hunts for the next new thing. He stands by you. Whether it is an economic recession or a PR disaster, in both cases, very often, the silver lining would be your loyal customers.
- Competitive Advantage
Brand loyalty puts you light-years ahead of the curve in a world where businesses fight to attract attention every inch of the way. A relationship cannot be easily copied. Your competitors could replicate what you offer but never the emotional connect that you share with your customer.
Building Blocks of Brand Loyalty
But how do you actually go about building this mythical beast known as brand loyalty? Well, I’m happy to answer that. For whereas there is no one-size-fits-all formula, there are some universal strategies that work time and again. Here is your brand loyalty blueprint:
Deliver Consistent Value
Consistency is everything. People want to know that they can count on you. Now, it doesn’t necessarily mean you have a fantastic product or service; that’s a no-brainer. It means that you communicate in consistency in messaging, tone and experience at every single touch point, from the website to social media to customer service.
Provide an Exceptional Customer Experience
Customers are no longer buying a product, customers are buying an experience about dealing with your brand. So, from getting onto your website and unwrapping the product, it’s got to flow smoothly, delightful and memorable.
For example: Apple and Zappos- their positioning isn’t on mobile phones or shoes, but they’re more concerned in delivering an experience customers pay a premium for. Guess what? Delightful experience creates loyalty.
Solutions with a Personal Touch
People want to feel special. Once you begin customizing your products, services or communications to specifically fulfill the individual customer’s particular need, that is the ultimate expression of demonstrating that you care. Personalized email campaigns, specific product recommendations, and even reserved offers for loyal customers go pretty far in cementing that emotional connection.
Credibility in Communication
They are tired of the sound of brands. They want to know, in the logo, there are real people. Be human. Let them have real conversations with you. You probably messed up somewhere down the line, and so you did it again and made it right. The masters here are Patagonia and Ben & Jerry’s, who themselves are doing something much bigger than just generating profit, which their customers love them for.
Reward Loyalty
Why not give some rewards to your most loyal customers for staying with you? Things such as loyalty programs, exclusive discounts, early access to merchandise, or even just a good old thank you email can be great ways of making the customer feel valued.
Loyalty Program Comparison Table
| BRAND | PROGRAM NAME | REWARDS | EXCLUSIVE PERKS |
| STARBUCKS | Starbucks Rewards | Free drinks for achieving specific numbers of purchases | Early access to new items and special events |
| SEPHORA | Beauty Insider | Earn redeemable points for every dollar spent on a purchase | Gift on birthdays and sales preview and notification before secret events |
| AMAZON | Amazon Prime  | Free shipping, among other treats | Sales during Amazon Prime Day, stream of entertainment, free Kindle access |
- Ethical Awareness
How much do they care? To the extent of location. Today’s consumer, more so from the youth, cares about where their money is going. They want to buy brands whose values resonate with them. So, if what you are doing for the world is something that is resonating with your target audience, then it will certainly be good for deepening the customer relationship.
How to Measure Brand Loyalty (Because What Gets Measured, Gets Improved)
So now you have your loyalty strategies. But how do you really know if they are working? Here’s how you measure brand loyalty:
- Customer Retention Rate (CRR)
Your customer retention rate calculates the percentage of customers that continue to do business with you over time. The higher, the better.
- Net Promoter Score (NPS)
This is the big one. NPS reveals the propensity of your customers to talk about you. It’s a direct measure of brand loyalty. If the NPS score is low, then it’s time to start thinking about things with the strategy you are applying.
- Customer Lifetime Value (CLV)
CLV measures the lifetime earnings that you can expect from a customer starting right from the beginning of the time spent with your brand. The CLV of a loyal customer would be higher than that of a single customer.
- Social Media Interaction
How many times a day does a customer interact with your brand online? Are they commenting, liking and sharing about your brand? Fine, then that is a high engagement, therefore, chances of loyalty.
In passing
Brand loyalty cannot be a one-night stand. It is actually a long-term game that requires consistency, but in the end, it is worth it. Brand loyalty at any given time will give you profits, mouth-to-mouth marketing, and a following of tribe customers who will stand with you thick and thin.
Spend money on your customers. Treat them like royalty. Listen to what they want, surprise them and let them know you care. Because by the end of the game, it’s about relationships and not the transaction. It is those relationships that are going to help differentiate your brand from those of today’s hyper-competitive market.