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All the Most Important Secrets of Brand Loyalty and User Trust
If a person finds himself on a deserted island, it is unlikely that anyone will hear him scream. Similarly, no one will know about a brand's new product or service if there is no target audience around. If we believe marketers, the main reason for the existence of a brand is potential customers, i.e., people interested in what it offers. Since today's internet users are highly demanding and even capricious, getting them to be committed to your brand is a challenge.
According to APA, the median attention span of the average user today is only 40 seconds. Brands that are initially honest with their customers have a better chance of retaining customers. Keep in mind that brand loyalty begins to build from the very beginning of a visitor's interaction with your website. Therefore, a really good brand takes care to provide an exceptional customer experience at every stage of the journey. After reading this article, you will learn not only what is brand loyalty, but also how to set up effective brand loyalty campaigns and measure their effectiveness to ultimately build a base of loyal users ready to be advocates for your brand.
Brand Loyalty and its Importance
Getting a loyal customer is probably the best thing a brand can do. Since the needs of modern consumers change almost lightning fast today, you need to build a strong base of loyal customers to ensure the sustainability of your online business.
Brand Loyalty Definition
So, let's start with the brand loyalty definition. In general, loyalty is a stable positive attitude of a person to something (which follows from the loyalty definition). Thus, brand loyalty is a customer's commitment to a particular brand expressed in an unwillingness to go to competitors, a positive attitude to what it offers and a desire to return for more purchases. Truly loyal customers will choose you again and again even if there are more affordable alternatives on the market.
According to HBR, the cost of attracting a new customer is 5 times or more than keeping an existing user engaged. So reducing marketing costs is the first - and perhaps most important - reason why brand loyalty is so valuable. In addition, loyal customers spend more money on products from brands they are loyal to. Finally, by continuing to choose a brand through all means, loyal customers keep an online business going during difficult times, such as economic downturns or reputational crises.
Brand Affinity vs Brand Loyalty
Unfortunately, the emotional connection and liking for a brand on the part of an Internet user is not always expressed in active actions, such as making a deposit or placing an order. That's why marketers distinguish between such concepts as brand affinity and brand loyalty. Below, you will find a table that clearly demonstrates the differences between these terms.
Emotional Connection to Build Brand Preference
So, now you know brand affinity meaning and you have also seen the comparison of brand affinity vs brand loyalty. It is a good time to understand the importance of the emotional component in building brand preference. Practically speaking, if a brand can evoke feelings that resonate with a person, then it can literally become a part of their life. Here are a few ways brands can create emotional connections with their customers:
· Using storytelling techniques. By being able to share their mission, values, and unique moments along the way, brands appear as having a soul in the eyes of consumers.
· Showing genuine concern for their customers instead of simply pushing products or services.
· Knowing how to be authentic and sincere even when mistakes occur.
Using the above techniques, brands create a kind of invisible thread that keeps their customers engaged. This translates into products and even their features, such as the unrivalled aroma of coffee reminding of unique morning moments.
Time-Tested Strategies for Creating Long-Term Loyalty
Website visitors do not become loyal customers of a brand by chance. Marketers carefully craft strategies to make users want to come back again and again. You can offer really high-quality products, but this does not guarantee that you will get a lot of loyal customers. To succeed, you need to learn how to make users feel like they are part of something big.
Secrets to Creating Unwavering Brand Loyalty
So, how to build brand loyalty to always have customers interested in your products at your fingertips? Here are three customer loyalty techniques that work practically every time:
· Learn to not only hear but also listen to your customers. Since customers always appreciate when their opinions are considered, you need to use feedback to understand the needs and pain points of your target audience.
· Incorporate traditions. You will have the best effect if you make your brand a part of your customers' lives. For example, you can hold events related to holidays or some significant occasions to create strong associations and connections.
· Do more than what customers expect from you. While paid advertising is still effective, unexpected bonuses, free upgrades or even a simple thank you can do more for your business.
Still thinking about how to generate customer loyalty? Stop positioning yourself as just a seller. Instead, build relationships with your users so that they see you as a partner.
Brand Loyalty Programs and Schemes
Many companies today use loyalty schemes as part of loyalty marketing strategies as they help create a mutually beneficial relationship between brand and customer. When developing loyalty campaigns, you should make customers feel like active participants in your brand. It is a good practice to involve customers in the process of creating your products. For example, you can run surveys to find out what users think about the products and their features.
To avoid being trite, don't just offer reward points or discounts for purchases or some other action. Try to make your customers part of the brand family - create communities where everyone can speak up and really be heard and understood. Also, don't forget to share successes to show how your customers are impacting the success of your business.
Why Customer Retention is So Important Today
Thanks to modern technology, starting your own online business has become an easier task than ever before. Therefore, you can see a gradual increase in competition in many niches, even the not-so-popular ones. Since, as mentioned above, attracting new customers is an expensive task, you should focus on retaining your existing ones.
By catering to the needs of your users as well as constantly reminding them of the value of your brand, you will be able to effectively retain your existing customers. This will help you save your marketing budget and capitalize on word of mouth when your users willingly share positive experiences with their friends and acquaintances. What's more, loyal customers are more likely to make repeat purchases than casuals who come to check out your products for the first time.
Measuring Brand Loyalty
So, trust in your brand and the willingness to recommend it to all those around them lies at the heart of loyalty. However, how do you know how effective your efforts are? That's where a few metrics come in, which you'll find below.
Brand Loyalty Assessment Metrics
Real Examples of Effectively Loyalty Marketing
Thanks to well-thought-out and successfully implemented loyalty strategies, many brands have remained leaders in their niches for many years. One good example is Starbucks with its loyalty program where customers accumulate points that can be redeemed for free coffee or food at the coffee chain. The brand has launched a convenient app enabling customers to easily find out about the number of points they have accumulated as well as exclusive offers, thereby strengthening their connection with the brand.
Another successful example is Amazon with its Prime subscription offering a wide range of features including free delivery, access to discounts and streaming services. This program provides a convenient experience of interacting with Amazon's services within a single user profile. The Prime subscription option has been so successful that customers stay with Amazon for years without even considering switching to a competitor.
What the Future of Customer Commitment Will Look Like
User behaviour is changing rapidly. Moreover, recent years have seen the emergence of many innovative technologies that significantly influence digital marketing. So, not surprisingly, approaches to building brand loyalty are also evolving.
Using Influencers to Build Loyalty
Many marketers prefer to cooperate with bloggers as they are opinion leaders for their audience. Practice shows that individuals trust recommendations from real people more than adverts. Although the financial appetites of big bloggers have increased, micro-influencers working with highly specialised niches provide the best results for brands. Through well-thought-out collaborations with opinion leaders, you can greatly enhance your customers' emotional connection to your brand.
Building Customer Trust in a Digital-First World
In a world where people prefer to interact with brands through desktop devices and smartphones, brand loyalty in marketing as well as customer trust plays a crucial role. To build trust, you need to follow the three rules below:
· Ensure transparency at every point of interaction with your customers by remaining honest and open.
· Ensure the security of your customers' personal and financial data to avoid issues and reputational damage.
· Make decisions based on careful analyses of user data to offer products that really interest your customers and even anticipate what they want (but without invading their privacy).
With staggering competition and changing customer needs, brand loyalty today is a solid foundation for long-term growth. Your sincerity, attention to your customers and willingness to change with them are the important things that help you gain and retain their trust.