What is Brand Loyalty and How Can Companies Build it?
How can you build brand loyalty?
Now for the last piece of the puzzle. We have the drivers of loyalty, we understand the benefits, but how exactly should you approach building a base of brand loyalists for your business?
1. Engage your customers
You can’t have brand loyalty without customer engagement. That’s like asking for a promotion without doing your job.
Interacting with your audience helps to create a sense of belonging and community. You can use social media to inform customers of new trends, special deals, or the next steps for your company. The more it feels like a conversation, the better.
It takes time and attention to truly build relationships with your customers but the benefits are pretty sweet. According to this Motista study, customers with an emotional relationship to a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, compared to the average rate of 45%.
Reach out, nurture, and retain the customers who really make your business – the loyalty will come naturally.
2. Keep your prices reasonable
We will be feeling the impact of the pandemic for a long time. This especially rings true when it comes to finances.
Research for our Customer Loyalty Report found that consumers frequently discussed where to get the most affordable household essential items, specifically at the beginning of Covid-19 lockdowns in the US and UK.
In fact, throughout February 2021 consumers in the US and UK said they’d been opting for cheaper options for both small and large purchases, expressing an appetite for promotions and discounts.
Value for money is not only the main driver for customer advocacy online but also a vital consideration for consumers when making purchase decisions. To continue to build loyalty businesses would be wise to keep an eye on their price tags.
3. Be reliable
We live in a world where instant gratification is the standard. So while things like product quality and consumer trust play a big role in loyalty, so do things like quick delivery and reliable service.
According to data from our report mentioned above, some of the top activities that prompted consumers to advocate for a brand online included positive experiences returning items and receiving a delivery order.
It’s an important reminder that customers want to be met where they are. In the case of the past couple years, that means at home, preferably on the front doorstep.
4. Listen and learn
It’s a simple concept that still rings true. Every one of your customers wants to feel heard.
It’s your responsibility to listen. But you should also be thinking about how to turn those conversations into learnings. Every interaction with your customer is a feedback session.
By understanding customer pain points and the things that delight them, you can stay ahead of potential issues and improve your products and services accordingly.
Bottom line: Building brand loyalty is worth your effort
The name of the game today is choice. Consumers have access to more information than ever. They do research before they shop. They engage with brands that are not only trustworthy but ethical. They value price point and quality.
Customer retention is important to every business, but loyalty is hard won – especially when a single bad customer experience can be broadcast to other consumers in just a few clicks.
