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First and foremost, brand loyalty is referred to as positive perception and feelings towards a certain brand. It is never driven by a price; it is more of an emotional connection that the customer has with the brand. For example, someone that has been shopping at the store for 10 years, has built a friendly relationship with the associates at the store, and is always recognized when walking into a store is considered a brand loyal customer.

How Do We Identify Brand Loyal Customers?

First of all, it is a good idea to look at the customers’ profile and figure out their lifetime spendings and purchase history. The article “How Many Purchases Define Brand Loyalty for Consumers?”  states that “For the majority (55%) of respondents, it takes at least 4 purchases before they consider themselves brand loyal. That includes a plurality (37%) of adults who feel that it takes them at least 5 purchases before they feel that they’re loyal to a brand”. Feel free to visit https://www.marketingcharts.com/brand-related/brand-loyalty-105947 to find out more about which customers are considered loyal. 

Also, there are normally 3 influencers of brand loyalty. At the top of the pyramid are always consumer drives. When the customer wants or needs something that only your particular brand sells, that customer will automatically become loyal to your brand. This is why it is a great idea to always monitor the sales, stay competitive on the market and have s unique approach to customers. For example: If someone walks into the store and has a great customer service, they are more likely to even spend a little bit more money, but enjoy the pleasant atmosphere then go to another store to buy a cheaper item. Niklas Stattin in his article “32 Customer Experience Tactics You Need to Know In 2024” mentioned that “In fact, 86% of buyers are willing to pay more for a great customer experience”. Visit https://www.superoffice.com/blog/customer-experiencestatistics/#:~:text=A%20good%20customer%20experience%20leads,for%20a%20great%20customer%20experience

Another thing that will definitely influence brand loyalty are social drivers. Those are the influences of friends and family as well as any other social groups. For example, when Stainley cups become and everyone of your friends has 3 different colors of it, you automatically become loyal to the Stainley brand just so you can be as cool as the rest of your friend group. 

Brand reputation is another thing that will help build brand loyalty and keep the customers retention. A brand that Is known for great quality is 5 times more likely to have the more loyal customers then the brand that is not willing to invest in their products. For example, Lululemon, just like 100 other brands, sells workout clothes. Lululemon’s products are a little bit on a pricier side, although, the brand has earned its reputation through their amazing quality of items as well as a lifetime return policy therefore now, they have over 10,000 loyal customers that shop with them at least 3-4 times a month. 

What do brands do to keep their loyal customers?

Let’s take Ralph Lauren as an example. We as a company have just recently started to monitor customers’ spendings as well as their frequency of shopping and location. We have also come up with the “Top VIC” list. This is a list of 100 customers who spend the most with us over the course of last year as well as how often they have shopped. We also have a concierge team, who are the people with more customer service experience and better product knowledge then the regular sales associates. These are the people who take care of our top VIC customers and reach out to them every 4-6 weeks to see if there is anything we can do for them. By giving their customer a top-notch customer service Ralph Lauren is trying to keep their brand loyal customers as well as “add” more people to that “list”. Visit https://www.ralphlauren.com/Stores-Details?StoreID=pfsvirtualappointment to learn more about concierge services offered by Ralph Lauren. 

Conclusion

It is up to each brand individually to come up with the action plan and the strategy on how to increase their customer base and bring in more brand loyal shoppers. What works for one brand may not work for the others. Also, the brands need to work on keeping the loyal customers they currently have. With that being said the customer service, product and personnel should always be top notch. People can shop at so many different places, but what are we going to do unique to make them want to be loyal to your brand?   

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