The bottom line in any business plan is quite simple—you want to keep people coming back for more. People will continue to purchase or utilize your products or services if they are loyal to your brand, and their loyalty comes from exceptional products and expert customer service. But, in the grand scheme of business success, how important is brand loyalty? And are the rewards worth the effort of building a plan to grow brand loyalty?
A 2019 survey of consumers conducted by YOTPO gives us a wholesome idea of the status of brand loyalty, and we will take a look at the various ways your business can begin to strengthen your customers’ perception of your company.
YOTPO surveyed 2,000 customers, which revealed that 67.8% of consumers characterized “brand loyalty” as repeat purchasing, 39.5% characterized it as a “love” for the brand, and 37.7% said that brand loyalty was a preference despite price.
Following this last sentiment, 36.5% of consumers said that they would spend more on products or services at a certain company if they were loyal to a brand.
Just because one customer comes back to your brand does not mean that they are loyal. 36.4% of customers said that they would have to purchase a product at least five times before they considered themselves to be loyal to a brand.
That can be a little shaking to hear as a company. As you know, bringing back a customer that many times is a monumental feat, especially when demand from customers for perfection continues to grow. (i.e. 67.3% of customers expect 24/7 service, 71% expect frequent discounts, and 58.4% expect free shipping).
Although the entire experience encapsulated in the purchasing process contributes to a customers’ perception of your brand, the most important aspect of brand loyalty is the quality of the product or service provided.
According the YOTPO, 77.8% of customers state that they are committed to a brand based solely on the product. If the quality of the product or service suddenly plummeted, these customers would abandon the brand regardless of any other factor.
Coming second to product quality comes customer service. 23.5% of consumers stated that they would abandon a brand if there was a drop in the quality of customer service. So, be careful. Even if you have the highest quality product, you can still lose customers to poor customer service.
The final answer is, yes. Building brand loyalty, no matter how difficult it may be, will garner benefits far greater than any strife associated with its cultivation. Why, you ask? Well, 59.3% of customers who consider themselves loyal to your brand will actually talk about your brand to their friends, family, and peers. You cannot buy that kind of PR.
People trust people they trust. So, if you have customers constantly promoting and suggesting your brand, it will lead to more possible engagements and the simple fact that it is getting your name out there. If you have loyal customers promoting your brand, it is the best PR you can get—and you can achieve it all with brand loyalty.
Also, 52% of consumers state that they will join and rewards program, while 40% state that they will always choose your product, even if there are cheaper options on the market. That is priceless loyalty, as it keeps you relevant in a market that is constantly trying to entice customers with the cheapest option possible.
Brand loyalty can be a turning point for your business, and will keep your company relevant in an ever-changing market.
You might now be questioning, how do I even go about trying to build brand loyalty in my customers?
One of the most important steps in building your business is getting to know your customer. Understanding the needs and wants of your customer is paramount to maintaining engagement and loyalty. You cannot sell a product or service that nobody wants or needs. The YOTPO survey revealed that 42% of startups fail because there was little to no demand for their idea in the market.
Analyze the market, look at your competition, and create a product that fills a void in a customer’s life. Engaging in conversation with your customers is one of the most active ways to directly address concerns and get exceptional feedback on your product or service in order to make improvements.
Brands thrive on consistency, and customers crave it. Consumers want to have the exact same, or an improved experience when they approach your business.
They want to be able to trust that your company will live up to its promises every single time. Consumers crave security, so, if you are a brand that provides that security, your rate of consumer loyalty will soar.
40% of consumers describe remembering a brand based on the way that the service made them feel. You want to connect to your customers on an emotional level. People want you to fit into their lives, not the other way around. Try to make customers lives easier, and they will reward you with their loyalty.
Putting in just that little bit more effort into recognizing the customer’s needs will aid in the exponential growth of your customer base and, ultimately, your business.
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Nugno is a Branding & Digital Design studio. Founded and run by strategic branding & digital design experts that shares a love of innovation, design and digital connection.
We create strategy and design with production across all platforms. We’re masters of brand identity and on point with websites and apps. Our skills extend to designing books people want to read and environments they feel comfortable in. We also create engaging motion design and much more.
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Luca Amoriello, Director
Tel: +353 (0)87 383 2134
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