Illustration of people attracted to a magnet

“A brand is nothing but an expression of the consumer’s loyalty and trust.”

Loyalty is an important trait in all aspects of life. The same is true for business. Without loyalty a business will not last longer. For a business to thrive, customers need to come back again and again, and a lot of those customers must consistently choose that business over others who offer the same service.

What is brand loyalty?

Brand loyalty refers to the strong attachment and trust a customer has for a business. This strong attachment makes the customer consistently choose the business over competitors, even when the price offered by the business is higher than what competitors are offering. In other words, a customer that is loyal to a brand feels that that brand is the best among competitors and will always choose that brand over others regardless of its pricing.

What are the benefits of brand loyalty?

You might be wondering how exactly brand loyalty benefits a business. Here are some ways:

Customer retention
When customers are loyal to a brand they will remain with the brand no matter what. In the eyes of a loyal customer, nobody does it better than their brand and so even when presented with alternatives, they will stick with their brand. Loyal customers have a higher Customer Lifetime Value (CLV). Their loyalty remains even when the price their brand is offering is higher than that which other brands are offering.

Boosted sales
Loyal customers are repeat customers. Because loyal customers consider their brand the best and stick by it, they make repeat purchases and usually spend more on average. This helps the brand to make more sales.

Reduced marketing costs
Loyal customers are a gold mine for businesses because when a business has lots of loyal customers, it does not really need to spend so much on marketing. It just needs to keep working on improving its products and services and keeping its customers happy.

Competitive advantage
Having loyal customers gives a business an advantage in the marketplace. Customers that are loyal will choose the business over competitors and will be quick to make excuses for, and forgive the flaws and shortcomings of the business.

Positive word of mouth
Loyal customers are very quick to advertise their brand’s products and services. Because they consider their brand the best, they want friends and family to use their brand. They will even tell strangers about their brand if the opportunity arises.

Enhanced brand reputation
Brands with loyal customers usually offer higher prices than their competitors. This is based on the premise that their services are better than those of their competitors. As a result of this, they get placed on a pedestal, considered way above average and this enhances their reputation.

Factors influencing brand loyalty

Brand loyalty does not exist in a vacuum. There are things that a business can do to foster brand loyalty. These include:

Quality of products or services

Most often, customers are loyal to a brand that gives them value for their money. They want good products and services and if your brand can give them that, they are more likely to stick with you. In relationships, most people do not bother looking outside once they find someone who gives them what they want. That’s also the case in business. Customers who are satisfied with the quality of your products or services are more likely to ignore others and remain with you through thick and thin.

Emotional connection

How you make your customers feel is also a great contributor to their loyalty to your brand. Customers who feel seen, heard and understood are more likely to remain with your brand and keep choosing you over others. This is because those customers form a bond with your business and might feel that buying from competitors is them cheating on your brand.

Customer service

The quality of your customer service plays a great role in determining whether or not customers will be loyal to your brand. When the complaints, concerns and inquiries of customers are met with politeness, patience and prompt help, they are more likely to stick with you no matter what.

Reliability and trust

There can be no loyalty without trust. Humans are loyal to what they trust. When your brand is reliable, it means that your brand is always committed to giving your customers the best. When customers know that your brand is reliable and can be trusted, they will stick with you.

Consistency

When you consistently present your brand image the same way across all touchpoints, it builds recognition in the minds of your customers. Consistency also helps to build trust, because it shows that you do not change your core concepts and beliefs at the drop of a hat. Aspects of your brand image like your brand logo, imagery and typography should remain the same whether it’s on your website, business cards, or letterheads.

Perceived value

Customers are more likely to be loyal to a brand that they think has value than to one that has not. When you are able, through brand management, to increase the perceived value of your brand, customers will be loyal because they see you as a giant in the industry and feel privileged to be affiliated with you.

How to build brand loyalty

To build brand loyalty, do the following:

Ensure that your products and services are exceptional and of the best quality.

Form an emotional connection with your customers. Let them feel heard, seen and understood. Build great customer relationships with them.

Improve your customer service. Answer questions and proffer solutions and help in a timely manner, and with the utmost respect.

Show your customers that they can always trust your brand to give them the best. Prove to them that they are your priority and you are fully committed to making sure they have the best.

Be consistent in how your brand is presented to your customers. Present all aspects of your brand identity the same way across all touchpoints.

Seek to increase the perceived value of your brand. Let your customers feel a sense of pride in their association with your brand.

Types of brand loyalty

There are three types of brand loyalty. They are:

Hard-core brand loyalty: This is when customers are die-hard fans of a brand and will always purchase from that brand. They consider their brand superior and all competitors inferior and so they stick with their brand. An example of this type of brand loyalty can be seen with Apple. Loyal customers of Apple basically see those who use Android as lesser beings and continue to salivate over and even buy each new Apple release every year.

Split-customer brand loyalty: This refers to when customers are not loyal to just one brand, but can be loyal to two or even three brands. With this type of customer loyalty customers focus on the strengths of each brand and choose that brand to fill a particular need. For example, a person might prefer Maybelline’s foundations, but choose MAC’s lipsticks, while preferring L’Oreal’s eyeshadows.

Shifting-customer brand loyalty: This refers to when customers frequently switch from one brand to another as a result of changes in taste or preferences. An example of this might be a person leaving Toyota for Mercedes as a result of a change in status, preference or taste. Or a person switching from a Mercedes to a more environmentally-friendly Tesla.

Brand loyalty examples

Some brands that have great brand loyalty are:

Coca-cola

Apple

Starbucks

Amazon

Lego

Nike

IKEA

Adidas

Netflix

Spotify

Crocs

The bottom line

Brand loyalty is the strong connection a customer has with their brand that makes them choose that brand over others, regardless of price. Brand loyalty offers benefits like customer retention, boosted sales, reduced cost of marketing, competitive advantage, positive word of mouth and enhanced brand reputation. Some factors that influence, and can be used to build brand loyalty include: offering quality products and services, forming an emotional connection with customers, top-notch customer service, ensuring reliability and trust, consistency and striving to increase the perceived value of your brand. The types of brand loyalty are hard-core, split and shifting customer loyalty

Need help building customer loyalty?

iBCSCorp is a company that helps businesses like yours reach their potential. With its digital marketing services, your business can reach its target audience, attract and retain customers and turn those customers into loyal customers. Its tailored branding service will also help you design your brand, ensuring that all aspects of your brand identity are consistently presented the same way across all touchpoints. Reach out to us today, and let us help you design and market a brand that is worth being loyal to.