How to Effectively Build Brand Loyalty


As 2018 approaches, is your business confident that your customers will stay loyal through the new year? Take a second to think; once you gain a new customer, what is your company doing to ensure you retain them overtime? What is stopping your customers from listening to competitors trying to convince them that they can do it better or provide it cheaper? Identifying what your customers want and doing an excellent job of giving it to them will make all the difference.

You need to find a way to go above and beyond for your customers while staying in budget and applying the right time and expenses in attracting new customers. Customers views on brand loyalty is continually changing and your company’s strategy must keep up.

A 2017 report from Accenture shows the following:

  • 57 % spend more on brands or providers to which they are loyal. That means 43% spend the same or less. And more than a third (36%) consider loyalty irrelevant to their spending.
  • 71% claim loyalty programs do not engender loyalty.
  • 61% switched some or all their business from one brand or provider to another in the last year.
  • 77 % of all consumers admitted they now retract their loyalty more quickly than they did three years ago.
  • 23% demonstrate a negative or non-existent reaction to companies’ loyalty efforts. And that number is rising, particularly among younger consumers who will be critical to driving revenue growth in the years ahead.

Loyal customers are profitable customers. Repeat customers are cheaper to market to, spend more, and make more frequent purchases. Yet, only 27% of initial sales go on to become repeat customers. Companies need to invest in building loyalty among their customers.

Why focus on repeat customers?

  • According to Paul Farris’ book Marketing Metrics, a repeat customer has a 60% – 70% chance of converting.

  • Not only do repeat customers convert more often, they have a higher average order value than first time buyers.

  • Your loyal top 10% spend 3x more per order than the lower 90%, and your top 1% of customers spend 5x more than the lower 99%.

  • A repeat customer gives your company increased word of mouth advertising.
  • Cross-selling works better with existing customers because a relationship has already been established so they will be more open to new products by your business.

  • Gain better understanding of your target market. Instead of going through the trouble of doing market research, you can get this information straight from your existing customers.

How can you achieve stronger brand loyalty? Here are a few tips to keep in mind:

Keep quality high. Depending on the price of your product there is an expectation of a certain level of quality from the marketplace. Stay consistent in the quality of your goods or services. People will go back to what they know they can count on, don’t let them down.

Engage your customers. Keep in touch with your target market on a frequent and consistent basis. Let them know about the new and exciting developments within the company and what to expect next, build momentum through communication and let your fans feel involved in the happenings of your company.

Solicit feedback from consumers. Stay in touch with your consumer.  Ask their opinion of your business, did they like their most recent experience with your company, were they satisfied with the customer service, did the product or service meet their expectations? Let them know that you care about their experience and that you are listening to their concerns.

Give them a reason to come back. Provide incentives for consumers to return to your company instead of the competition. Create programs that reward loyalty to your brand.

Stay relevant. Keep a close eye on what your competition is doing and what the current trends are in your industry. If your marketing and communications strategy isn’t relevant to the current market then, your message provides little or no value and falls on deaf ears.

Provide Value. Create a plan to give a percentage of loyal customers’ cumulative spending back to the consumer in some way. Whether it is through phased in discounts, complimentary shipping, or additional  service, always find a way to create added value.

Show your appreciation. So often companies forget to say a simple Thank You for your business. Wish your clients Happy Birthday, Happy Holidays and a great New Year.


Building brand loyalty doesn’t happen overnight. Contact our team today to implement new strategies to develop life-long customers.