Laptop at coworking space

What is Brand Loyalty, Why it Matters & How to Achieve it?

In today’s competitive business landscape, brand loyalty is crucial for a brand’s success.  It measures how well a brand has […]

Mark Jackson

President at SwagDrop

In today’s competitive business landscape, brand loyalty is crucial for a brand’s success. 

It measures how well a brand has established a strong connection with its customers and created a sense of trust and commitment.

But how do you go about building brand loyalty? 

Don’t worry; we have the answers for you! 

In this article, we’ll cover the fundamentals of brand loyalty, the importance of boosting it, and practical tips and strategies for achieving it. 

So sit back, grab a cup of coffee, and let’s dive in!

Table of Contents

What is Brand Loyalty?

Why Brand Loyalty Matters

How to Achieve Brand Loyalty

What is Brand Loyalty?

Brand loyalty is a strong emotional and psychological connection a customer has with a particular brand. 

This connection is demonstrated through the customer’s preference for the brand and willingness to continue using it, even when faced with other options. 

Brand loyalty also means that a customer consistently chooses the same brand over others without being swayed by factors such as price or promotions. 

This unwavering commitment to the brand results from the customer’s positive experiences and emotional attachment to it and can lead to repeat business and long-term customer relationships. 

That’s why companies that can foster brand loyalty among their customers often enjoy a competitive advantage, as customers are more likely to recommend the brand to others and continue using it in the future.

Brand loyalty vs. customer loyalty 

Brand loyalty and customer loyalty are often used interchangeably, but they aren’t the same. 

Customer loyalty refers to the overall level of trust and commitment a customer has towards a company. 

It results from various factors, including product quality, customer service, and pricing.

On the other hand, brand loyalty refers specifically to the connection between a customer and a particular brand.

This connection is often based on personal user experiences, emotional attachment, and positive associations with the brand.

For example, a customer may be loyal to a company but only purchase a specific brand of products within that company. 

This customer may not have an emotional attachment to the company as a whole, but they’re still loyal to the specific brand because it meets their needs and preferences.

Why Brand Loyalty Matters

Brand loyalty is crucial for any business, as it can significantly impact the bottom line. 

A global consumer survey conducted by Yotpo in 2021 found that loyal customers are more likely to recommend a brand to friends and family, making them valuable brand ambassadors. 

The survey found that 92% of consumers are likely to recommend a brand they’re loyal to, while only 12% of consumers are likely to recommend a brand they’re not loyal to. 

This highlights the importance of building brand loyalty, as loyal customers can drive new business through word-of-mouth referrals.

In terms of financial impact, the same survey found that brand-loyal customers are more likely to purchase more often and at a higher average order value. 

Specifically, the survey revealed that brand-loyal customers make an average of 2.6 purchases per year, compared to 1.9 purchases made by non-loyal customers. 

Additionally, brand-loyal customers also spend an average of 20% more per purchase than non-loyal customers.

Another important factor to consider is customer retention; the survey found that loyalty programs are highly effective in retaining customers, with 68% of customers saying they stick with a brand because of its loyalty program. 

By retaining customers, a business can reduce the cost of acquiring new customers and increase its customer lifetime value.

How to Achieve Brand Loyalty

In this section, we’ll explore the strategies and techniques that businesses can use to foster brand loyalty and ensure long-term customer engagement.

How to achieve brand loyalty graph

Tailor personalized customer experiences

A personalized customer experience is one of the most important factors in building brand loyalty. 

A survey by Accenture found that 91% of consumers are more likely to shop with a brand that provides relevant offers and recommendations, and 83% of customers are willing to provide their data to receive a tailored experience.

A tailored customer experience also considers a customer’s preferences, purchase history, and feedback. 

By offering a unique experience, customers are more likely to feel valued and connected to the brand, leading to increased brand loyalty.

Build a community

Building a community around your brand is a great way to create loyal customers. 

A study conducted by Harvard Business Review showed that customers who feel a strong sense of community with a brand are more likely to purchase from that brand again in the future. 

In fact, the study found that customers who feel a strong sense of community with a brand are 4 times more likely to purchase from that brand again and 7 times more likely to forgive the brand if it makes a mistake. 

This demonstrates the importance of fostering a sense of community and belonging among your customers. 

To build a community, you can create forums, discussion groups, or social media groups where customers can connect with each other and share their experiences with your brand. 

You can also create events and activities that bring customers together and allow them to interact in person. 

Additionally, you can show your customers that you value their input and feedback by regularly incorporating it into your product and service offerings. 

Become a reliable partner for your audience 

Building a strong relationship with your audience is essential to creating a successful brand. 

One way to do this is by being a reliable partner to your audience. 

This means consistently delivering high-quality products and services, responding to their needs and feedback, and providing excellent customer support.

One study found that 78% of consumers will continue to conduct business with a reliable company with exceptional customer service despite an error. 

A reliable brand also ensures that its products and services are optimized based on customer feedback. 

This can be done through regular market research and monitoring customer behavior. 

This helps brands to identify what their customers want and need and make the necessary changes to improve the customer experience. 

For example, if your audience consistently desires lower prices, consider offering discounts or promotions to keep them coming back.

Create a marketing strategy to drive brand awareness

A marketing strategy is crucial in promoting brand loyalty and strengthening brand identity.

By carefully crafting and executing a marketing plan, you can influence the perception of your brand and establish a deeper connection with your target audience.

To begin, it’s important to conduct thorough market research to understand your target audience and their values.

This information can then be used to shape your brand messaging and create content that resonates with your audience.

One effective way to reach your target audience is through digital marketing channels, such as email marketing, social media marketing, and e-commerce.

These channels allow you to connect with your customers on a personal level and engage with them in real time. 

For example, by hosting webinars or creating mobile apps, you can reach your target audience in a more personalized way, making them feel valued and appreciated.

In addition to digital marketing, it’s important to focus on building customer relationships through rewards programs and incentives. 

Consider customer loyalty programs

A customer loyalty program can reward customers for their repeat business and encourage them to make repeat purchases. 

A follow-up campaign can be used to check in with customers after purchase and gather feedback to improve the customer experience.

In addition, incorporating a “surprise and delight” strategy can also help increase customer satisfaction and drive brand loyalty.

This strategy involves surprising customers with unexpected gifts or experiences that go beyond their expectations, creating a memorable and positive association with your brand.

According to another Harvard Business Review survey, investing in customer loyalty programs can result in many positive outcomes for brands.

The primary objective for many companies is attracting new customers, with a staggering 65% of brand executives identifying it as a top priority. 

Brands also seek to create emotional connections with their customers, with 57% of executives expressing this goal. 

In addition, gaining valuable insights into customer preferences (50%) and boosting brand advocacy (49%) are also among the aims of investing in customer loyalty.

These goals highlight the importance of fostering strong relationships with customers and understanding their needs, which in turn can lead to increased brand loyalty and a more robust brand image.

Narrow your focus for greater impact

Your offer must be specific and clear to help them identify with your brand. 

This means choosing the one thing you are best at and sticking to it.

While offering various products, services, and identities would attract more customers, the opposite is true. 

The more specific and identifiable your brand is, the more affection it triggers in the customers who do like you; if you try to please everyone, you may make no impression.

For example, Nike is known for sneakers, even though they offer a variety of sportswear and gear.

By focusing on what you do best, you can create a strong brand identity and connect with your target audience on a personal level.

Build a strong visual brand identity

Design is crucial to building your brand and creating a lasting impression on your customers. 

When it comes to your logo, the color choice should align with the overall theme of your brand and transmit a message that resonates with your target audience. 

For example, the color red in the YouTube logo represents energy and passion, which reflects the brand’s message to its customers.

Having a memorable logo and brand name can quickly make it easier for customers to associate your brand with the products or services you offer without any additional explanation. 

That’s why it’s important to consider the design elements of your brand, as it can help you stand out from your competitors in the market.

Create valuable educational content

Creating valuable educational content is key to building brand loyalty and driving customer engagement in today’s digital age. 

By providing educational content, brands establish themselves as trusted sources of information, enhance the perceived value of their brand, and build a stronger connection with their customer base. 

This all comes together to build a strong brand strategy, define the brand’s personality, understand the target market, and tailor marketing efforts and partnerships. 

According to Conductor, educational content significantly impacts consumer behavior, as engagement with early-stage educational content increases the likelihood of a purchase by 131%

This highlights customer education’s crucial role in building brand loyalty and winning over customers. 

So keep this in mind:

Offer practical solutions: When creating educational content, brands should provide concrete examples and step-by-step instructions that customers can easily follow and apply to their own situations. 

For example, suppose you’re creating content about improving a particular business process. 

You might provide case studies of companies that have successfully implemented similar changes, along with detailed instructions on how they did it. 

Evaluate and refine: It’s not enough to just create educational content and leave it as is. 

You must continuously evaluate your content to see what’s working and what needs improvement. 

One effective way to do this is by asking for feedback from your target audience. 

This could be through surveys, comments on your blog or social media, or reaching out to a few customers directly.

Based on your feedback, you can refine your content based on your feedback to make it even more valuable. 

This could involve changing the format, updating information that’s no longer accurate, or adding additional content to address frequently asked questions.

Now Over to You

In conclusion, brand loyalty is the glue that binds customers to a specific brand and sets the stage for a lifelong relationship. 

It’s the key to repeat business, word-of-mouth recommendations, and a thriving customer base. 

With this in mind, it’s easy to see why brand loyalty should be a top priority for any business looking to thrive in today’s competitive marketplace. Now it’s your time to visit our blog, where you’ll find all the information to keep your customers coming back for more.

How can we help?

If you need a hand, have an unanswered question, please fill out our contact form and our friendly sales staff will get back to you ASAP!