What is it that makes us loyal to a particular brand? What compels us to go back, time after time, to purchase the same item? Beyond product satisfaction, brand reputation, price and convenience, customers in the digital age want to feel valued, connected and engaged.
Online experiences now have a significant impact on customer satisfaction. As consumers increasingly rely on social proof to discern the trustworthiness of a brand, businesses must create a memorable online presence with content that connects. By reaching out with personalised communication, responding promptly to feedback and investing in digital communities, brands can cultivate positive testimonials and turn loyal customers into fervent advocates.
Connecting with Consumers: Why is brand loyalty important?
Consumers create varying degrees of attachment to the brands they choose to interact with.
- A customer who believes in the innate advantages of a product – such as the quality or price – demonstrates cognitive loyalty.
- Behavioural loyalty is shown when customers repurchase from the same brand over time.
- A client who has a deep emotional loyalty to a brand is connected to its values, community and storytelling, and is more likely to pay a premium.
- Silent loyalty refers to customers who have a high level of satisfaction for a product or service but do not actively promote or endorse it.
- Brand ambassadors who actively engage in the community, promote products and address questions demonstrate cult loyalty. For example, Apple has cultivated this type of status with its products.
The top driver of customer loyalty in 2023 was a good product or service. However, customer support, an easy-to-use website and social responsibility are also fundamental to attract and retain customers.
Cultivating loyalty is similar to having fans. Loyal fans are perpetually in tune with what their preferred artists are doing and stay in the loop about the latest updates. By creating deep relationships with customers, brands can realise the following benefits of their fanbase:
- Loyal customers are more likely to make repeat purchases and choose your brand over competitors in spite of market fluctuations, driving long-term profitability.
- Repeat customers can become effective ambassadors of your company, sharing positive experiences with friends and colleagues and driving organic referral traffic. This valuable word-of-mouth marketing can grow your business at a lower cost.
- Acquiring new customers is more expensive than retaining existing ones. Moreover, existing customers spend 67% more than new customers.
- Regular customers provide invaluable insights into their preferences, behaviours and evolving needs. This data enables businesses to tailor their offerings and deliver exceptional experiences to strengthen customer relationships.
Keep them Keen: 5 Strategies to Cultivate Customer Loyalty
In an age of fleeting trends and attention spans, cultivating customer loyalty that lasts is imperative. Businesses must curate a comprehensive experience that resonates deeply to create a sense of connection and belonging. Multiple factors drive brand loyalty, which combined, can elevate the customer experience.
Exceed Expectations in Customer Service
According to a 2022 survey, nearly 8 out of 10 consumers deemed good customer service as important to keep them loyal. Brands must interact with customers in a personalised way across all touchpoints and channels. This may include a cohesive and responsive website or app with FAQs, active engagement with customers on social media platforms and prompt responses to enquiries and concerns. Tailored post-purchase engagement also offers a good opportunity to obtain feedback and reviews.
Rewards That Pay Off: The Power of Loyalty Programs
Showing customers they matter is a surefire way to create trust and an emotional connection. According to a 2022 survey, more than 83% of respondents said belonging to a loyalty program influences their decision to purchase from a particular brand. By rewarding clients with exclusive benefits such as discounts, samples, redeemable points or early access to sales, loyalty programs are an effective way to retain customers and promote repeat business. Companies can also learn more about client preferences using machine learning and AI to analyse this valuable data, tailoring rewards based on past purchases or browsing behaviour to increase engagement and satisfaction.
Purpose-Driven Loyalty
Companies that align their ethical practices with the values of customers are better positioned to attract a loyal following. Nearly 60% of Gen Z and Millennial consumers are more loyal to brands that speak up in the face of social issues and brands who are making a positive social impact are highly esteemed and increasingly sought after. However, brands must substantiate their claims with transparent data. Symbolic sustainability and a lack of accountability in the digital age can quickly lead to accusations of greenwashing and social washing, which can irrevocably tarnish a brand’s reputation. By demonstrating an authentic commitment to ethical practices, companies can foster trust and a loyal following.
For example, ambitious climate change promises have turned into a troubling liability for Delta Airlines, which is currently facing a $1bn class-action lawsuit over its claim of being “the world’s first carbon-neutral airline.” According to plaintiffs, this assertion (made in adverts, LinkedIn posts and in-flight napkins) is “false and misleading” as Delta relies on offsets that do not actively counteract the climate crisis. Claimants allege that many would not have purchased tickets if it wasn’t for this carbon neutrality claim.
Build a community
Brand loyalty goes beyond price and product. Consumers are looking to connect. By creating spaces where your customers can engage and interact, you're nurturing a sense of belonging. Social media, review sites and community forums are effective platforms to build strong digital communities. Loyal community members can also become advocates who promote your brand to new members. By actively listening, showing your brand’s personality, offering helpful information and moderating effectively, you can encourage community engagement online. Alongside sharing positive experiences and helping to expand reach, communities are also a valuable source of insights about customer preferences and pain points.
Data privacy
Customers need to trust that their personal information is secure. Nearly 90% of shoppers surveyed in 2022 stated that they would be more likely to spend money with a brand that openly commits to protecting their personal data. Companies that prioritise customer privacy not only build trust and comply with legal requirements, they can also win loyal customers.
Case study: The Wool& community – The nicest place on the internet
Wool& is a small American retail company that has successfully built a devoted customer base by creating an active online community that has been called “the nicest place on the internet.” This niche brand sells merino wool clothing in an inclusive range of sizes, positioning itself as the maker of “the most practical, wearable item in your closet.”
The brand promotes a mindset of slow consumption, attracting a client base that shares the same sustainable values. Their #100DayChallenge invites customers to wear a wool& dress for 100 days in a row and post it on social media, rewarding successful participants with €100 off their next purchase. Over 7,000 customers have completed this rewards program, investing in pieces that are built to last and actively demonstrating the odour-resistant, temperature-regulating and quick drying properties of merino fabric.
The wool& Community: Wardrobe Challenges & Chat group on Facebook is the platform where fans convene to engage with the brand and each other. Without the possibility of trying on items in store, many customers reach out with questions about the different garments, looking for feedback about style, colour, fit and advice about the 100 day challenge. But beyond sharing photos of #OOTDs and #unicorndress restocks, this virtual community is a place where women of all ages and sizes openly post about their daily lives as they wear these dresses, initiating discussions about ageing bodies, family struggles and mental health issues. Other members respond with genuine kindness, cheering on each other’s accomplishments and offering uplifting advice and encouragement. This compassionate, body-positive support is an inspiring example of what a real community looks like; one that extends beyond fashion and into the realm of meaningful connection and mutual support. The average Facebook group has 2,300 members. The wool& Facebook community has accumulated 25,000 loyal members since 2020.
The design studio on the wool& website also invites customers to vote on which items should be made next. Encouraging participation in the decision-making of new items or restocks makes customers feel more invested in the brand, fostering a stronger sense of brand loyalty and increasing the likelihood of repeat purchases.
Loyalty at first sight
Building brand loyalty starts from the first positive interaction with a consumer. To cultivate lasting relationships with audiences today, brands need consistent communication that offers a memorable emotional connection and a rewarding and positive experience. Developing this trust early on can result in a stronger brand reputation and the growth of your business. Loqui Media specialises in personalised media solutions for targeted audiences. Contact us today to discuss how to elevate your brand and transform casual customers to enthusiastic brand advocates.
