Brand loyalty is exactly what it sounds like. But for good measure, we’ll start with a brand loyalty definition: Brand loyalty refers to the sense of loyalty your customers feel for your brand. Brand loyalty is generated in many ways, which we will cover below.
Maintaining loyal customers has significant effects on your bottom line, your brand reputation, customer churn, and increases customer satisfaction.
The importance of focusing on keeping customers happy and loyal to your brand over the long run is often overlooked or ignored. However, consider this: 60% of consumers will tell their colleagues, friends, and family about companies that have earned their loyalty. This amounts to free word-of-mouth advertising, which is hard to beat.
But let’s take this one step further. Nielsen reports that 83% of consumers trust product and brand recommendations from friends and family more than ads and other sources of brand promotion. But that’s not all. That same percentage of consumers (83%) say they take action on these recommendations at least some of the time.
The importance of building brand loyalty is clear. The real question is: how do you create loyalty among your customer base? Below we’ll cover the most important tips and best practices for doing so.