« Show all articles

Brand loyalty: what is it and why is it valuable in marketing?

Brand loyalty is developed over time from marketing strategies based on a few key tactics. Here’s what they are.

“Coke or Pepsi?” asks the server to the table of diners.

“Oh whichever, we don’t mind,” replied the diners… never.

It’s an accepted fact: you’re either a Coke person or a Pepsi person, and any crossover only happens as a very last resort, and when the preferred brand isn’t available – and you really, really want a soda.

Coke and Pepsi are brands that have effectively divided the world along brand loyalty lines. Both have customers around the world who will only ever choose their product over a competitor’s.

Brand loyalty is the stuff of which marketers’ dreams are made, but it is attainable. Brand loyalty is developed over time from marketing strategies based on a few key tactics. Here’s what they are.

What is brand loyalty?

Brand loyalty is when customers consistently choose a particular brand over another. It’s a commitment to a brand by a customer. In that sense, brand loyalty is similar to human relationships.

Customers with brand loyalty believe their preferred brand offers better quality or service than its competitors. The value of the customers increase over time with every purchase made.

How can you build brand loyalty?

Here are some marketing strategies used by some of the biggest brands to grow brand loyalty:

Ensure quality

Brand loyalty will only ever be achieved if the product or service offered is of value – no amount of marketing will persuade customers to hitch their wagon to an inferior product.

Offer the best customer service

Exceptional customer service that makes customers feel valued will always be a worthwhile investment. When a customer feels confident that questions will be answered and issues will be resolved properly, it promotes brand loyalty.

Recruit brand ambassadors

Companies with great brand loyalty often use spokespeople or engage celebrities and influencers to spread the word. The best brand ambassadors are respected, perceived authorities, who promote the brand with authenticity and personal connection.

Set up a loyalty program

Rewarding customers for their business is a straightforward, simple marketing tactic to promote brand loyalty. A loyalty program discount can make customers feel appreciated and can help offset any unease about more expensive products.

Create an online community

Social media is a great way to build deeper, more personal connections with customers. Communities are built using things like question-and-answer sessions, live streams and personal interactions. Digital communities connect customers with brands and forge actual relationships.

Examples of brands with strong loyalty

Despite customers being able to purchase much cheaper coffees, Starbucks enjoys solid brand loyalty, primarily due to its loyalty program Starbucks Rewards, a phone app that allows customers to get discounts and free refills.

Apple is a global superstar of brand loyalty. In fact, a recent report by SellCell shows Apple’s brand loyalty sits at 92 per cent. Apple has achieved this brand loyalty by cultivating a reputation as a high-quality brand with revolutionary technology, state-of-the-art design, and outstanding customer service.

Nike enjoys possibly the best brand loyalty of all sporting brands, and they do this by ticking all the brand loyalty boxes: offering access to exclusive perks like tickets and product launches, digital community, personalisation in marketing, and omni-channel experience.

Why is brand loyalty important?

Put simply, brand loyalty improves your bottom line. According to the Harvard Business Review, brand loyal customers purchase 90 per cent more frequently than new customers.

It’s also worth remembering that existing customers cost a lot less to market to than new clients.

Brand loyalty also brings in greater revenue. The same Harvard Business Review report reveals that brand loyalty grows revenue 2.5 times faster than businesses with little brand loyalty.

Speak to the marketing experts

Loyalty is a key part of any marketing strategy because it understands the value in making customers believe they are appreciated, and the real bottom line benefits that flow.

Assemblo is a full-service marketing agency based in Melbourne, and we know how to get you starting in growing your brand loyalty.

To find out how we can help your business, give us a call on (03) 9079 2555 or send us a note via the contact form below.

« Show all articles

Ready to elevate your business?

We love meeting exciting, new people. Whether you need help with a one-off project or are looking for a long-term partnership, get in touch and lets have a chat.

Simply fill in the form below, or just give us a call on +61 3 9079 2555:

  • This field is for validation purposes and should be left unchanged.

Are you an Assemblo insider?

Would you love to get a monthly email with the latest trends, news, marketing insights and some of our awesome work thrown in for good measure? Yes? Then sign up below for a monthly update.

Your privacy is important – you can read our privacy policy here.

  • This field is for validation purposes and should be left unchanged.