See Ya Later Customer Loyalty

Customer loyalty has always been a big deal, but in recent years, it’s kind of seemed like it’s less prevalent. With customers in the driver’s seat and brands vying to give them the best experience possible in order to keep their business, customers are left with a lot of options. So, is brand loyalty even a thing anymore? Here’s what we’ve found.

‍

‍Yes...

‍Here’s how some consumers define brand loyalty: “Repeat purchasing (67.8%), followed by ‘love’ for the brand (39.5%), and finally, preference despite price (37.7%).” Additional statistics tell us that 82% of U.S. adults say they're loyal to brands, and 36.5% of shoppers will spend more with brands they’re loyal to, even if they can find cheaper options somewhere else. At first glance, it looks like customer loyalty is alive and well. Here comes the “but.”

‍

But...

‍

‍But, consumers are more educated than ever before and competition is steeper than ever before. Even if a customer thinks they’re loyal to a brand and has been for some time, that doesn’t mean they’re loyal for life. They’re always just one piece of bad press, one product failure or one ultra-tempting offer from your most aggravating competitor away from jumping ship. What’s a company to do? Here are some ways to increase the likelihood you’ll create - and keep - truly loyal customers, for the long haul.

‍

‍

Experiences, not just perks

‍

Customer loyalty programs are as common as Snuggie infomercials, circa 1998. They’re everywhere, and so their value has frankly been diluted in the minds of consumers (loyalty programs, not the Snuggie). Some companies, but certainly not all, are starting to recognize this change. For instance, Vice President of Loyalty at Marriott Thom Kozik said, “Points are not the point anymore… We weren’t keeping track of how consumers were changing their behavior.” So Marriott updated its rewards program to allow customers to use points toward experiences like a Broadway show or premier cooking classes, rather than just future hotel stays. Depending on your industry and your business model, a customer loyalty program may still be a good idea but you have an opportunity right now to bring it up to pace with today’s consumers. Can you make it more experiential? Increase the value of what customers can earn? Elevate it to be more exclusive and desirable? As Kozik hit on, points are not enough anymore. So ask yourself, what else can you do?

‍

‍

What do you stand for?

‍

Hand-in-hand with consumers becoming more savvy and educated is the shift toward consumers caring where their dollars go. They don’t just care that their dollars are leaving them (“Bye, Ben Franklin, I’ll miss you!”); they actually want to know what type of company Ben is going to support. Is it a retailer that uses unethical business practices? If they’re aware of this, today’s average consumers won’t stand for it, no matter how low prices are. The marketing world has embraced this and spun off the concept of “cause marketing” to appeal to this new consumer. The idea is that the more a brand publicizes their ethical practices, philanthropic deeds and positive character traits, the more customers will want to buy from them. And cause marketing really can work well, as long as it’s approached the right way. If you have a cause that matters to you, or your brand supports a charitable organization or an important social initiative, don’t be shy about sharing it. Doing so might feel weird but we promise it’s not opportunistic or egotistical; it’s good business. People today are looking to support companies that share their values, so make sure yours are clear. It may turn a few folks away, but it’ll almost surely deepen the bond countless others feel with your brand and your mission. We actually shifted our marketing focus to work with companies that improve people’s lives because it’s something we’re all very passionate about. We love working with companies that are truly making a difference and we can connect to their mission and making people or the world a better place, in some way.  

‍

Never sacrifice trust

‍

One of the worst offenses in the eyes of most customers is deception. If your company messes up, acknowledge it and apologize for it. Make it right - immediately. If you don’t, customers are bound to find out and their loyalty will fly out the door along with the nice, comfy repeat sales you’ve counted on for so long. On the other side of deception is trust-building. This is something you can actively work toward. Aim to get referrals (no one trusts a company faster than a buyer who was referred to it by a loved one) and use tools like case studies and testimonials to increase trust in your brand as well. The more people like you, and trust you, the more likely they’ll “love” your brand and feel safe spending their money with you, time after time after time… How will you ride this new wave of brand loyalty and ensure your customers want to stay by your side?  Give us a call if you’d like help aligning your digital strategy with your customer retention strategy.