How To Create Strong Brand Loyalty

Did you know that, on average, 65% of revenue comes from repeat customers? However, 44% of businesses focus more on customer acquisition than on nurturing loyal customers or clients. According to Businesswire, brand loyalty is stronger than ever as prices rise and people become more critical of where they spend their money. Creating strong brand loyalty is key to a successful, growing business, and it’s built on consistency, communication, and values. Factory 360 explores more on how to create strong brand loyalty and why brand loyalty is so important to your business. 

Why Does Brand Loyalty Matter?

At the core of marketing, customers invest more in brands they align with and trust, which supports brand loyalty. Customers are more likely to choose a brand they know and trust over a new brand, regardless of price or variety. 

• A 5% increase in customer retention is cheaper than acquisition costs
• Businesses have over a 60% chance of selling to an existing customer, whereas they may only have a 10% chance of selling to a new customer
• 70% of customers who are emotionally engaged with a brand and loyal to the company will spend up to twice as much on these brands as a competitor 

When we look at what might be driving the push for brand loyalty, it’s mainly due to rising prices, which make customers much more selective. With products being pricier, people are choosing which brands they want to invest in, especially for higher end products, and they typically will purchase products from brands that they already trust and know are worth their purchase. 

Consistency Is The Foundation of Trust 

To build brand trust, your brand needs to be trustworthy to your audience, and that requires consistency in everything from your product offering to your customer service. Overall, consistency is the top driver of brand loyalty across the globe, and it is built over years of quality products, good customer experiences, and proving yourself. However, studies show that 33% of customers will consider switching to a competitor after just one negative experience. Building trust and creating a trustworthy brand is measured across every touchpoint, not just product quality. Building a trustworthy brand that attracts loyal customers starts with consistency across every area of your business and every customer touchpoint. 

Stay Socially Impactful and Speak Up 

Today, customers want brands to take a stand and speak up on social issues. In fact, almost 60% of Gen Z and Millennial US customers say that they’re more loyal to brands that stand up on social issues. Having a mission or value behind your company is nonnegotiable nowadays, as it can drive customers to choose you over a competitor. For example, Toms, the shoe brand, is widely known for its buy-a-pair, give-a-pair mission, which has been a huge factor in why customers choose Toms over competitor brands. Their customer base is loyal and supportive of their mission and continues to purchase from them to support the cause and make more intentional, impactful purchases. 

Focus More on Proper Communication 

Two-way communication and personalization strongly influence customers’ purchasing decisions today. Previously, there was a push to talk to your audience on social media by engaging in stories and other areas. Still, the need for personalization and two-way communication is very different now. Audiences are looking for direct engagement so they can feel seen, valued, and understood by the brand, instead of being another name on a screen or in a purchase history. Meaningful connections and conversations can build brand trust and loyalty, as customers want more personalization, individuality, and a sense of community when supporting a brand. 

Give Back Through Experiences

Seeing an urban person on social media or on their website is not the same as seeing them in person or at an event. Experiential marketing is a great opportunity to truly connect with your audience, talk with them, engage with them, and give them a more one-on-one experience than they’d get anywhere else. Pop-ups, events, promos, and demonstrations are great experiential marketing strategies that strengthen the relationship between you and your audience, supporting brand loyalty and trust. Adding experiential marketing to your strategy can strengthen those relationships and create a stronger connection, leading to repeat customers, increased sales, and brand loyalty. 

Giving Back to Loyal Customers 

Nowadays, almost every brand or store has some sort of loyalty program that rewards repeat customers for consistent purchases. These programs are a great way to give back to customers who have built your regular audience base by offering reward points, coupons, or special access. Reports show that over 80% of customers prefer brands that offer loyalty programs, and the loyalty management market is expected to hit $25 billion by 2029, making loyalty programs a valuable addition to your brand. 

Loyal customers make up a huge proportion of repeat sales, referrals, and new product purchases. Loyalty creates a soft spot for the brand, leading to forgiveness for mistakes, advocacy for the product, and a higher likelihood of trying new products you launch. They are the backbone of a successful business, and it’s important to give back so the relationship is balanced; instead of a give-and-take relationship, both sides are being poured into. 

Experiential Marketing For Strong Brand Loyalty

If you are a brand looking for ways to build strong brand loyalty, adding experiential marketing to your strategy can help. Now that you know more about how to create strong brand loyalty and why it matters, implementing these ideas is the next step. With pop-up events or other in-person experiences, your audience can see your brand, talk with you, and experience it in a different way than they would with digital marketing. Personalization, connection, and consistency all play into brand loyalty, which experiential marketing helps build for long-term support. At Factory 360, we specialize in experiential marketing.We are here to help you strategize and execute when you’re looking to add experiential marketing to your lineup!