What Drives Brand Loyalty?

If you were to ask someone what their favourite supermarket, phone company, or restaurant is, chances are they'd have an answer. Whether it's a product, service, or design, customers develop a fierce loyalty to brands they connect with.

 In an era of endless choices and overcrowded markets, brand loyalty can feel fickle, and in many ways, it is. However, plenty of businesses still generate a loyal following, and so can you, with the help of Marque, Auckland’s leading branding advisor. In this guide, we'll dive into what drives brand loyalty, how to achieve it, and why brand loyalty is important.

What is Brand Loyalty?

Brand loyalty refers to a customer's preference for a particular brand over its competitors. When a customer becomes loyal to your brand, they perceive your product as a perfect fit for their needs, and as a result, they are less likely to try out your competitors' options. This type of customer is likely to make repeat purchases, even if your products are not the most convenient or affordable. They may also recommend your brand to others, which can help drive your business and increase your revenue.

Levels of Brand Loyalty

Brand Recognition

Brand loyalty starts with recognition. Brand recognition is about making your voice heard in a crowded market, capturing and retaining customers' attention while building trust. This first stage is make or break; customers will look elsewhere if you fail to impress and build loyalty here.

Brand Preference 

Brand preference is where a standard customer starts transitioning into a loyal one. It means a consumer will pick your brand over competitors in the same industry. How a product or service is packaged and marketed can significantly impact consumer and customer purchasing decisions, as brand recognition is closely tied to brand preference.

 During this stage, it's important to remind your customers why they picked you in the first place. You should highlight the unique aspects of your business that differentiate you from your competitors. Establishing your brand as an authority in your industry is crucial. Once a customer has reached this level of brand loyalty, it is much easier to get them to the last stage than those who seem stuck at the first stage.

Brand Insistence

When customers prefer a single brand for their purchases or associate it with the industry it is a part of; they have likely reached the final level: brand insistence. At this stage, customers think of no other brand when considering the type of product or service they offer and have become loyal to your brand. Just remember, once a customer reaches this stage, it doesn't mean they will stay there. Ongoing marketing efforts are required to keep loyal customers loyal.

What Drives Brand Loyalty?

Excellent Customer Service

A customer's experience will immensely impact your ability to pull them through the brand loyalty stages. Their experience when making a purchase begins when they enter your store or website. Factors such as the ease of navigation, the speed at which their questions are answered, the efficiency of the check-out process, the quality of any follow-ups, returns, or exchanges, and even the length of time they are made to wait all contribute to excellent customer service. By executing these tasks quickly and effectively, you may be able to gain a loyal customer for life. 

High-Quality Products

Quality products will often sell themselves and can generate brand loyalty with ease. These products will be recognised for their dependability in satisfying customer needs. When a product is faulty and fails to address a customer's problem, it reflects poorly on the brand. Customers expect products and services that function properly, and when they don't, it creates doubt in the brand's dependability.

Previous Engagement with the Brand

The satisfaction of a customer largely depends on their experience with the customer service. A happy customer is more likely to return and recommend your business to others, which can, in turn, increase your brand loyalty. 

Why is Brand Loyalty Important?

Brand loyalty is important for every business as it is key to driving growth. Customers loyal to your brand become not only repeat buyers but also transform into brand ambassadors. This loyalty becomes an overarching indicator of critical metrics such as trust, advocacy, and the likelihood of repeat purchases. Identifying and nurturing these loyal customers is not just a strategic move but a cost-effective one, as attracting new customers can be significantly more expensive. 

How Loyal are Your Customers?

If driving brand loyalty has been a struggle for your business, consider partnering with Marque, your Auckland-based brand marketing specialist. With a team of experts on hand, we can work with you to craft a marketing strategy that will have your brand heard and trusted within your industry. Contact us today!