What is Brand Loyalty? How to Improve and Examples

Brand loyalty is when a customer continues to buy products from your company, and not because you are the only option, but because they trust your company.

Loyal customers are profitable customers. Loyal customers do not hesitate to spend money for your brand, they often shop. Moreover, the cost of holding these customers is at least 80% less than gaining new customers. However, only 27% of customers continue to be regular customers. For this reason, companies need to make serious investments in building loyalty among their customers.

Modern customers thoroughly research the product they intend to buy or the website on which the product is sold before a real purchase.

In today’s e-commerce era, where Amazon raises the bar from good to good, almost everyone can import products from many countries around the world and put them on sale as they stick their own brand labels on the product. However, this is a step that will spoil the authenticity of the original brand. Both markets are full of businesses that have already become a cult brand, thanks to their large customer base that they have grown as avalanches over the years. You cannot also use traditional methods to create customer loyalty without directly dealing with the customer. Moreover, fewer customers remain loyal to a particular brand with each passing day.

So what does it take to build brand loyalty?

Even if consumers don’t remember the brand name or advertisement – even subconsciously – they remember the bond they have with any brand. This means that your branding and marketing activities will be your chief assistant in the struggle to create a loyal customer base. However, this job must be done correctly.

Follow the tips we will include in our article to make even ordinary customers become loyal customers who remember your brand, logo or who you are and will continue to come back for more.

Why Do We Give Up Brands?

We get involved with many brands throughout our lives. In our childhood, we leave this choice for the brand to our family, and in our youth we turn to brands that our friends are fond of, not our family. In adulthood, we determine the brand we will shop, and we include everything we want, or rather, everything that our financial strength will be enough in our “brand” category.

However, we tend to break away from brands over time, not just for the age we are in, but for other reasons. We may want to try different things or the things we use may be outdated. Or, after a negative store experience, we can think that the brand in question no longer meets our needs. Can’t it be?

For example, I would always buy my jeans from a particular brand. I would go to the store, take whatever my body was, I wouldn’t even bother trying the product. Because I knew you’d sit right on me. After a while, the brand could not keep this body fit after a while, and I switched to another brand.

The loss of a single customer may seem trivial. However, even the slightest change in brand loyalty affects your profit rate.

Does Storytelling Affect Brand Loyalty?

The effect of storytelling on brand loyalty is undeniable.

For example, although Pixar has the world’s most technologically advanced movie studios, they know best that no technology will be enough to turn a bad story into a good story.

There is a reason why literary works that have been reached thousands of years ago are still being read – “Ilyada”, “Odysseia,” “Beowulf” and “Sir Gawain and Green Knights” “Gilgamesh” etc. epics continue to be popular even today. You ask why? Each of them is fascinating stories, and they are narratives that are woven by knot in order to ignite the fuse of your imagination!

According to research, stories have the power to activate our emotions. Words like “soap”, “cinnamon” or “coffee” activate the brain’s odor lobe. So much so that the brain cannot see a distinct difference between reading about any experience and experiencing it in real terms. Both activities stimulate the same area of ​​the brain.

Stories connect us, but most companies insist on sharing boring stories that will not generate even the slightest attention to anyone:  “We are the best headphone company ever, you can’t find better in the market than we are.” Cliche, isn’t it?

You must have an extraordinary and powerful story if you want to create brand loyalty. Consider Apple. The unusual story of the business that started in the garage of a house has evolved further with the presence of Jobs, which was fired from his company but then called back to save the company he was fired from – moreover, in the position of CEO. What a powerful story!

So you? What is the establishment purpose of your business? How did you set up? Do you have a brand story? In order to establish a strong connection with your target audience or to create a wide echo thanks to your story, focus on making use of the content you will convey your brand message directly to the consumer.

Remember, you cannot tell a good story without any conflict – your story cannot be interesting or meaningful. Although we try to live depending on the idea of ​​avoiding conflict until today, the opposite is true for storytelling. 

What are the Examples of Brand Loyalty?

In this part of our article, we will include unusual business examples that have managed to create brand loyalty.

1) Redbull

Redbull, also known as Krating Daeng, was first launched in Thailand in 1976 as an energy drink for low-income customers. When an Austrian marketer traveling to Thailand loved the taste of the drink, he met with the manufacturers and offered to sell the product abroad.

After the agreement, the name of the drink was changed to Red Bull. The new company chose to move towards the energy drink market instead of targeting a low-income audience and soon achieved success. Red Bull continues to dominate the market even today. 

2) Zappos

Shoe company Zappos has set up a website to prevent customers from browsing their stores and spending their hours to find the shoes they love – in the color and size they want. This new idea, introduced in 1999, has been further developed over time. The product range was expanded, adding handbags, accessories and clothes to stocks. The only thing that hasn’t changed is the perfect customer service they offer.

Let’s explain this perfection through an example: When the strap of a sandal he bought for a woman child is broken, he applies to customer service for change. Zappos produces a new pair of sandals for the customer, but accidentally sends the wrong pair to the customer. As soon as the company officials realize this fact, he sends a new pair of sandals to the customer and tells them not to send back the old one, even to donate them to a charity.

Wouldn’t you want to buy the products of such a brand over and over again? 

3) Airbnb

The founders of Airbnb have set up a site called “Air Bed n Breakfast” in order to slightly reduce San Francisco’s rising rental costs and earn extra income . The goal is to give people 80 dollars per night, including breakfast, as a host. it was to offer accommodation for a fee – all you had to do was to have an extra inflatable mattress. Airbnb has become an accommodation system used in 190 countries today. 

4) Costco

Costco, a market chain where only members can shop, opened its first store in 1976 in the aircraft hangar, which it filled with discounted products to serve small businesses. They soon opened their doors to anyone who wants to become a member, and the business has grown more and more every day. The basic philosophy of the business has never changed – keeping costs down and transferring all savings to members.

5) Burt’s Bees

Imagine getting a hitchhiker to be your company’s founding partner in your car! This is exactly what the “bee grower” Burt experienced, hitchhiker Roxanne Quimby got into his car. Burt had an extra wax stock. Roxanne, on the other hand, was an entrepreneurial spirit who managed to turn wax into useful products. The result was this successful cosmetic brand.

How to Build Brand Loyalty?

If you want to build brand loyalty, you should focus on gaining the trust of your customers and take steps to increase their chances of returning to your business.

Here’s what you need to do to create a loyal customer base and build strong “brand loyalty”:

1) Create an image that is compatible with your vision.

Your business must have an image that is compatible with your vision and values. The customer definition of each business is different. For example, for the Chevy Impala company or the owner of Rolls Royce Phantom, “customer” means different things. Both car brands aim to ensure that drivers reach their destination with relative comfort, but one does this for a high price, while the other puts emphasis on craftsmanship and luxury and takes a refined approach. 

2) Be original.

Focus on originality as a brand. Be real. Nobody gets fooled by dust and dreams. Real stories and real people always attract more attention.

3) Be transparent.

“Transparency begins with a change in mentality.”

Let’s explain the importance of transparency through an example company: Everlane is a low-cost, high-quality apparel company that disables all brokerage firms that collaborate with ethical factories around the world, including those in Los Angeles. The company is famous for selling t-shirts for $ 50 at a high-end store, selling products of exactly the same quality for $ 15.

Everlane’s company is so transparent that they do not hesitate to clearly show the cost of any product, the price of the label, and how many competitors sold the same product. 

4) Interact with customers.

The interaction you will have with your customers helps you create a sense of belonging. Your customers feel as if they are part of a private community. In order to establish this interaction and ensure that the customer never loses enthusiasm, you should also share new and exciting developments regarding your brand and news and ideas about your field with your customers.

You can use social media to inform your customers about new trends, special deals, promotions, discounts or your company’s next step. It will be in your interest to reflect this data in a sincere language.

If you encourage customers to be loyal fans of your brand, they will have a positive perception of your brand. Customers with high interaction coefficients are happy, loyal customers.

Customer or brand loyalty is about reaching customers who will ultimately make you, keeping their hearts and losing any customer.

You must have heard of the Pareto principle – 80% of our results come from 20% of our efforts. In other words, 80% of your earnings come from 20% of customers. Therefore, you should focus on developing services and products or creating new sales techniques for this small customer group that creates the majority of your income. Note that the difference between the best customers of a business and others is evident: Even 5% of your best customers are 18 times more than the average customers.

Therefore, adding just a few more “super customers” to your customer base may be the smartest and most cost-effective step you can take to grow your business.

To do this, you must first reveal the truth behind customer loss behind the scenes.

In most cases, this is due to poor or inadequate customer service.

You have to make sure that your customer service – especially those offered through social channels – is flawless. If you play your cards correctly, you will be advantageous again.

Customers desire social media interactions to be much faster; such that 14% of customers hope to receive an instant return on Twitter, and 65% hope to be able to meet with the relevant parties within two hours. We draw your attention: This is hope, not demand. It is not an excessive demand, is it? So, what approach does the average brand take on this subject or how active are you in interacting with the customer? The picture is not very bright. Because approximately 70% of those who reach the brands they shop on social media claim that they do not get the slightest response regarding their demands.

For this reason, you should focus on social media interactions and deal with every customer who has a complaint as soon as possible – you can use private messages if necessary. You should offer a positive customer experience , ensure that your sales representatives manage the process well, and encourage customers to stay connected to your brand long enough to develop a true sense of loyalty.

Another way to please existing customers who have had one or two shopping experiences with your brand on time and are satisfied with the process is to discover their needs they are not yet aware of. Use data on customer behavior and provide them with effective solutions to meet their needs or solve their problems.

One of the software companies determined customers with the risk of leaving the brand by setting “red flag criteria” and managed to reduce customer loss by 71% with a series of strategies that would encourage them to stay. Determine what your red flag criteria will be for your brand, scrutinize the factors that push the customer away and show that you are ready to intervene when necessary.

Finally, we will talk about an old method that still works: a simple thank you note, happy birthday / wish for a holiday etc. Special day-oriented stylish behavior will also allow you to go a long way as a brand. Remember, every customer, regardless of their industry, wants to feel that they are cared for outside of commercial transactions. 

5) Understand customer needs well.

9 out of every 10 attempts fail. You ask why? They cannot understand the customer’s needs, expectations or interests. Moreover, they do not even know what is attracting the customer! Hence, while the enterprises with the highest growth rate are among those who lose the least number of customers, the most unsuccessful companies are among those who do not realize that customers are queuing at the door and escaping from the back door.

Lack of interaction is the basis of this situation. Even a tiny hole in the customer line weakens the link between customer demand and the product / service you offer.

42% of unsuccessful enterprises have been removed from the market on the grounds that they could not find a market strong enough to carry the service they offer. Therefore, you should use customer interactions to reach customers and convey your message correctly. Listen to your customers – the most effective way to get your presence in social media or to make the customer feel real is to interact. Moreover, in this process, you can find out what the best and loyal customers love and love about your product and what they would like to change.

Some companies take this idea a step further: they meet their customers face to face and have an in-depth discussion with them about their products and services. In particular, it is natural for online businesses to move away from developing a “humane” approach in the service process. In order to make sure that your business is on the right track, you should be able to distinguish between functional and non-functional and accurately determine customer expectations. 

6) Be sure to develop a consistent brand understanding.

Consistency is a critical factor in building brand loyalty. A brand should always have the same feeling in the customer. The customer wants to know that a brand or company will fulfill its promises under all conditions – not just when the conditions allow it. It is inevitable for your company to grow if you can understand, if you can always offer quality products and services, if what you say and what you do is fulfilling, you can fulfill your promises even before the expected day. We are not even talking about what level of brand loyalty will be! Of course, all this does not guarantee success, but it creates a solid foundation that is essential for success and puts you in front of your competitors.

Therefore , it is important to ensure consistency in customer experience . McDonald’s is one of the most successful brands in the world, and Ray Kroc has been running consistently since the company launched its franchise process. It is the chain’s most distinctive feature of one on one with a McDonald’s store in New York or in India, Turkey is not the same. 

7) Use an impressive logo.

Colors should reflect the character of your brand, because the most effective way to visually express the feeling, mood, or role your brand is trying to evoke is using colors.

Consider this fact and be sure to choose your color palette accordingly when preparing the logo. For example, the red color used in the Youtube logo creates vibrant, emotional and passionate feelings about the brand in the audience’s mind.

The blue color used in the logos of Samsung and Ford represents trust and comfort.

Consider your brand message. What feelings do you wish to convey to your customers? Are you trying to create a reaction / reaction or to alleviate an existing anxiety?

Your unusual color palette integrates with your service, becomes consistent and creates brand awareness . Logo design is so important and effective that Pepsi etc. today. top companies don’t bother spending millions of dollars for the sake of new logo designs.

For example, Apple prefers the use of white to create a sense of cleanliness, simplicity and elegance for customers – which is very consistent in this regard.

Do you think Apple products have become the symbol of luxury and advanced technology thanks to their pure colors? Of course not – but it cannot be denied that all products resembling a device breaking from science fiction movies are an extremely logical approach to maintaining the brand value and give the company a great advantage over its competitors.

Your bank accounts don’t need to bottom out to design a great company logo. Even corporate companies worth billions of dollars could make their logo designs cheaper than water – Twitter’s logo cost $ 15, and Nike’s logo cost only $ 35.

If you don’t have a logo for your brand, you can use logo design platforms that offer affordable services. It is possible to get this job done within a few minutes. 

8) Focus on the ultimate feature of your brand.

Your customers want to associate themselves with your brand mission and the core values ​​you advocate. According to them, it is your actions that determine who you are.

So how do you ensure that customers can connect quickly and easily with your brand values?

Clearly! The clearer, clearer and more specific your customers are, the easier they can understand what you can offer them. This means that you will have to head for what you are best at.

Did focusing on one thing seem like an irrational idea? Is it enough to offer more products, services and even IDs to make your brand more popular? The more your brand awareness increases, the more likely you will be to create loyalty. If you try to please everyone, you will be removed from the market without any impact.

Enable customers to become the foundation for your business purpose. Make sure your brand offers something they’ll be upset if they yearn for or miss.

This means that you only need to focus on one job (which should be your best) until you have a large customer base. For example, Nike produces many products for sportswear and sports equipment – socks, yoga tights, dumbbells, water bottles. However, when you close your eyes and think of Nike, the first thing that comes to your mind will be sneakers / sneakers. 

9) Keep customers coming back.

Customers are much more likely to return to brands that they previously traded and had a successful interaction process. However, customers – especially in the online environment – often do not pay enough attention to the website where they buy products / services, do not even bother to bookmark, and have a hard time remembering the brand even if they really want to go back and make a new purchase. Considering that there are 2.9 million Google searches every day, you should be able to make your brand stand out.

How?

The first option is to create campaigns that offer rewards, discounts or coupons that will encourage brand loyalty and keep customers coming back. The bigger the prize, the more likely it is to return.

The same is true for commercial customers. Brands or wholesalers can also direct their customers to online sales. To do this, they just need to make their website accessible from any device. In this way, they sign a sales experience that will reach the customer directly from the business or provide their customers with price incentives that they cannot find elsewhere, allowing them to shop from e-commerce sites.

Other approaches to keep customers coming back are social media or email marketing – the combination of these methods is the most effective marketing method. You can share your subscriber list in your social media account or send an email to your social media followers. Take advantage of e-commerce and email market trends to create brand loyalty through social media. 

10) Take advantage of influencer marketing.

Another way to build brand loyalty is to get celebrities promoting your products or services. However, when it comes to increasing your interaction with your customers and building brand loyalty, reaching influencers through social media channels will be much more reliable and inexpensive.

Celebrities can request a much higher price for brand / product promotion, or worse, they may act unethical and undermine your brand reputation. Consider Nike with bike racer Lance Armstrong: Although the races the athlete won were also advantageous for Nike, the doping scandal that broke out later damaged Nike as well.

Today’s consumers can easily access user comments on products or services – and these suggestions are getting more and more reliable – such as word of mouth marketing, etc. marketing strategies are now seen as more reliable than advertising.

For this reason, you can get support from influencers where your customers feel close to brand promotion.

Another option is to bring together influencers and customers. How? By sharing or retweeting a post from your followers, give them the chance to become famous even for a short time, so you can easily reach other customers and create an intense whisper about your brand. 

Last word On Brand Loyalty

The most important part of creating brand loyalty is to ensure that customers come back. Loyal customers are more enthusiastic about brand loyalty and become bold advocates of your brand. You can create a sense of familiarity with the brand by understanding what is attracting your customers, interacting with them, or posting their tweets / posts on your own social media channels.

In the sales sector, where professionalism prevails, people constantly pursue sincere interaction and human emotions. Be sure to focus on customer needs and make all your investments accordingly, earn their trust by fulfilling your promises, and then watch each one turn into a loyal customer.

Creating brand loyalty is not as simple as it seems. However, implementing the methods we count will contribute to building a loyal customer base.

In today’s world, where a fierce competition prevails, you should highlight your brand to share brand loyalty and share your brand story in the most effective way possible.