Brand loyalty in a digital world

Did you know that today’s customers are 33 percent less loyal than just five years ago? And that 78 percent of consumers identify themselves as not being loyal to any particular brand? What’s more—those who are loyal are only loyal to about three brands at any given time.

Changes in consumer behavior, rising expectations and a somewhat unstable economy are just a few of the reasons consumers are less loyal. But all is not lost. Research tells us that loyalty is greatly impacted by both customer service and customer experience. Knowing this provides marketers and companies an opportunity to enhance their customer-centric efforts and provide positive experiences.

Brand Loyalty: A three-part approach

Ready to get started? Here’s a three-step process to kick off your brand loyalty efforts.

  • Step one—Analyze and plan: Begin by better understanding your customers and segmenting them accordingly. Use social media and other listening platforms to uncover customer product preferences and interactions. Assess why they’re motivated to buy from you, what pain points they may experience throughout the buying process, and if they prefer relationship or transactional experiences. Once you have this critical information, you’re ready for step two.
  • Step two—Apply and implement: Put your data to work by building loyalty initiatives based on your customers’ needs and preferences. Relationship-focused consumers appreciate helpful and friendly advice from store staff, a useful blog post or loyalty program. Consider a tiered point system that rewards them for their purchases, such as a coupon organizer for a few points to rolling carry-on luggage for high point earners. Also consider a members-only tote that can be used to obtain special in-store discounts.Transaction-focused consumers prefer store staff to direct them to the best deal or to receive an online offer based on past purchases. Consider sending valuable coupons or offering them an optimized experience—perhaps an early-admission pass to a sale or event.
  • Step three—Measure: There are multiple ways to track and measure your loyalty efforts. Consider using Net Promoter Score to gauge the likelihood a customer will recommend your company, or calculate customer lifetime value to determine marketing spend for loyalty programs.

Although customers of today appear less loyal than before, there’s still hope. Marketers can apply research-proven methods to gain and maintain loyal customers for years to come. For more information on this topic, check out our Brand Loyalty Blue Paper®.

Legatt, Helen. “Poor retail customer service decreasing loyalty.” Loyalty Marketing. BizReport, 25 Aug. 2014. Web. Retrieved 24 Nov. 2014.

Russo, James. “Connecting Through Clutter: Stay Ahead of Consumers to Win in Today’s Fragmented Markets.” Nielsen. N.p., 14 Feb. 2014. Web. Retrieved 08 Dec. 2014.

Legatt, Helen. “Consumers more likely to be loyal to brands with a physical presence.” Loyalty Marketing. BizReport, 22 Sept. 2014. Web. Retrieved 24 Nov. 2014.

“Brand Loyalty.” 4imprint. Info.4imprint.com. N.p., 23 Feb. 2015. Web. Retrieved 02 Mar. 2015.

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One Response to “Brand loyalty”

  1. Angel Martinez

    Measuring brand loyalty for a seller is much like taking a look at his progress report for the term that went by. And with the fluctuating economy fuelling a loyalty shift, analyzing the current position from time to time becomes extremely important. The three part approach to assessing brand loyalty makes it achievable and easy to execute. I will surely try this.

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