In today’s oversaturated market, brand loyalty is essential. On the long and winding path from a consumer’s eyes to their wallet, many brands lose sight of the big picture: fostering brand loyalty in a select few segments is more cost-effective than getting thousands of individuals to simply notice your brand. In the long run, it’s also more profitable to cultivate a loyal customer base that will keep coming back vs. using resources on getting people to make one purchase.
Brand loyalty is based on the public perception of your brand, meaning that people are loyal to the image and values of the brand rather than just the pricing or the product. Your everyday customer may purchase more than once if it’s a good product, but they are also liable to switch brands if the price is right.
Brands can foster loyalty by examining how they engage with the world, leaning into data to figure out what their consumers care about. 83% of millennials favor brands that align with their values, prioritizing ethical consumption over price. Once you have a grasp on the segments of customers that keep coming back, you can then tie your promotions and content to values that resonate with your customers, perhaps highlighting sustainability or ethical production for the web visitors that engage with those causes.
Brand loyalty sets the stage for repeat purchases and increased revenue by encouraging customers to refer their network to a brand and trust them for future purchases. 81% of customers trust recommendations from family and friends over those from companies. It also costs less to retain brand-loyal customers than it does to recruit new customers. And it pays off: 65% of revenue in most companies comes from repeat business with existing clients.
88% of consumers say it takes three or more purchases to build brand loyalty. Here’s how personalization can help improve brand loyalty with your customers:
Use behavioral data over demographic data: In this day and age, personalizing based on age or sex doesn’t cut it. Behavioral data enables personalization that delights customers and makes them feel understood. One of the CPG food brands that we work with personalizes their website based on patterns in browsing history: after John has viewed a few gluten-free recipes and air fryer recipes, the AI engine gets the hint and pushes more relevant content to that consumer. Then, on John’s version of the homepage, they’ll see more recipes that fit their dietary preferences as well as the materials they use to cook.
70% of consumers say that how well a company understands their individual needs impacts their loyalty. The way for brands to demonstrate understanding of their consumers is to implement thoughtful personalization that inspires brand loyalty by being uniquely engaging and informative.