So is it all doom and gloom for marketers? Have we been so focused on the slow rolling threat of AI taking our jobs that we didn’t see the little purchase-power pipsqueaks growing up and having their own wallets right in front of our eyes?
I think it will be okay. And yes, it’s still worth reading this article about brand loyalty. We just have to dive a little deeper.
What Makes Consumers Loyal to a Brand?
First, let’s figure out the secret sauce that gets consumers to become brand loyalists.
Clearly, you need to have a great and desirable product and margins that allow for discounting. And creating “great deals” will come in handy.
But check out who’s taking third place – customer service.
Customer service is a jackpot for your brand.
First, your customer service (CS) team gets the opportunity to have a touch-point with your consumer and really dig into their needs and desires. Make sure your team is keeping up with customer’s expectations.
Second, you can use the questions and concerns gathered by your CS team and turn them into Big 5 content for your sales team and website. This will allow you to produce the exact content that your customer-base is looking for online, removing the need for them to ask you (or your competitors).
Third, you need consistently happy customers in order to earn their loyalty. So, make sure your team is doing a great job.
According to Yotpo’s “State of Customer Loyalty in 2018” study,
Before considering themselves loyal, shoppers need to buy from the same company:
- Five or more times (37 percent)
- Three times (33 percent)
- Four times (17.7 percent)
- Two times (12.4 percent)
A great customer experience when contacting customer service and a great website that educates your customers before they even ask their questions is a great way to transform a one-time purchaser into a brand-loyal buyer.
But How Long Do They Stay Loyal?
Once you’ve earned brand loyalty from your consumer, they tend to stick with you.
And over 1/3 of online shoppers claim to be loyal to their favourite brands.
But Why Does Brand Loyalty Matter?
Encouraging brand loyalty takes a lot of work but there’s more to it than simply having happy repeat-purchase customers.
Brand loyalty is actually a two-way street. Brands do great things and offer great products for their consumers. Loyal customers then help their favourite brands in several different ways.
If 39% of online shoppers are brand loyal and 60% of them will refer friends and family to your brand and product, that’s roughly 23%, or nearly 1/4 of your customer base willing to advocate for you (for free!)
If you’re able to put a great referral campaign in place and take the friction out of the referral process, perhaps that number would be even higher.
Similar to referrals, reviews can really move the dial for a brand.
Bottom line: Brand Loyalty Is Worth It
Don’t wait for brand loyalty to (maybe) happen for your business, or you can put together a strategy and go after it.
Yes, building a brand-loyal customer base requires a lot of work. But it’s the kind of work that betters your business and produces happy people who advocate for your brand without being asked.
All-in-all I’d say it’s worth it every step of the way.