How can a digital marketing strategy build customer trust and loyalty in a company’s brand?

Consumers have more choices than ever before. In a few clicks, shoppers can find multiple options when looking for a product to buy.

But if you provide your customers with an experience that they can’t get from your competitors, they will buy from you again and again. Building brand loyalty can help you turn one-off customers into repeat buyers and loyal customers into brand evangelists. 

There’s no silver bullet when it comes to customer loyalty, but there are tactics you can use as part of your marketing strategy.

 In this guide, we’ll reveal what brand loyalty is and why it’s important. You’ll also learn five actionable marketing tactics you can implement to increase brand loyalty at your company.

What Is Brand Loyalty?

Brand loyalty is why consumers choose to buy from one company over other options. A loyal customer doesn’t need to be convinced to purchase through hard selling as they value your products and services above what your competitors have to offer.

Why Is Brand Loyalty Important?

Brand loyalty is important because building a loyal customer base is one of the best ways to grow your business. Consumers are primarily split into three groups: loyalists, roamers, and neutrals:

The more loyalists you can attract to your brand, the easier it will be to generate sales. Loyal customers make repeat purchases and can be a powerful source of revenue.

It’s also much more cost-effective to sell to an existing customer than acquire a new one. Studies published in the Harvard Business Review estimate that acquiring a new customer is between 5-25x more expensivethan retaining an existing customer.

Loyal customers can also support your brand through word-of-mouth marketing. When a customer recommends your brand, it increases the chances of winning a new customer.

The 5 Steps To Create Brand Loyalty

Getting your customers to feel invested in your brand and your products and services is key to brand loyalty.

 But consumers are becoming less loyal.

 According to a recent McKinsey study, over 75% of consumers have tried new brands, places to shop, or shopping methods since the start of the COVID-19 pandemic.

So how can you foster brand loyalty at your company. 

Here are 5 actionable steps to build brand loyalty with your customer base.

1. Brand Strategy, Tone of Voice, and Storytelling

Your brand is one of the most important factors that influence customer loyalty. If consumers don’t relate to your brand and feel connected, you’ll struggle to attract and retain customers.

Creating a unique tone of voice and brand story can help you differentiate your company from your competitors. It can also make your brand feel more familiar and approachable.

Once you have established a brand story and tone of voice, it needs to be consistent across all your marketing channels.

Nike is an excellent example of a global brand that maintains a consistent story across a vast range of channels. As a result, it’s become one of the most recognizable brands in the world.

The inspirational brand story is clear in all of its digital ads and sponsorship deals. It’s also encapsulated in its slogan, “just do it.”

2. Best Customer Experience and Customer Service

The experience of buying from your brand is integral to customer loyalty. It only takes one bad experience to lose a customer.

According to Exploding Topics, 61% of people have ditched a brand due to poor customer service.

Customer service is typically handled via phone and email, but it also increasingly takes place on social media. Whichever channel your customer uses to reach out, you need to be able to respond in a timely manner.

Social media customer service is also out in the open for the world to see. How you deal with complaints and interact with your customers is visible to every user on the social media platform.  

Monitoring brand mentions and responding to questions and complaints on social can help you stay ahead and avoid issues before they develop into a problem.

3. Personalized Marketing Efforts

Personalization is key to cutting through the noise and delivering marketing messaging that resonates with customers. With so much content competing for consumer attention, people will only pay attention to the messaging that is super-relevant to their interests and needs.

 Even a simple “Happy Birthday” email can go a long way to showing your customers you care and value their business. In addition, if you offer an exclusive discount or reward, you can increase sales while deepening the connection with the customer.

Using a customer data platform (CDP), you can leverage data on past interactions and purchases to determine which types of products a customer will be interested in. By tailoring product recommendations to each customer, you can motivate new and repeat purchases.

4. Social Media To Connect and Create a Community

Social media is an effective tool for generating brand awareness and boosting online sales. But it can also be a powerful channel for building brand loyalty.

Instead of focusing your efforts on pushing products, you can use your social media channels to drive engagement and tell your brand story. According to a 2021 study, 31.6% of users log on to social media platforms to find content. The same survey shows that 22.1% of people use social media to find like-minded communities.  

You can build a community around your brand through storytelling and user-generated content (UGC). One of the best examples of this type of community building on social media for brand loyalty is GoPro.  

The technology company uses UGC throughout its social media marketing campaigns to establish trust and demonstrate the benefits and capabilities of its products. The #goprofamily hashtag has generated over 502k posts on Instagram alone:

GoPro keeps its audience engaged and loyal to the brand by building a community around its products on social media. As well as boosting customer retention, community building can get your products seen by a larger audience and generate sales.

5. Reward Programs for the Loyal Customers

Reward programs have a long history dating back hundreds of years. But this tactic can still be an effective way to encourage brand loyalty.

 You can offer exclusive rewards to repeat customers. This usually involves discounts, but it can also include free shipping, free products, and other perks. 

According to a 2020 study, consumers value exclusive discounts as the most appealing feature of a loyalty program.  

Leading features seen as valuable in loyalty programs according to consumers in the United States as of January 2020:

Starbucks is an excellent example of how a rewards program can drive customer retention. Customers can use the Starbucks app and the rewards card to collect a star for every $1 spent in-store. These stars can be exchanged for free drinks, espresso shots, snacks, and other perks.

Even occasional customers that are signed up for the loyalty program are eligible for birthday and holiday rewards. The rewards program encourages future purchases and helps to strengthen the connection between the customer and the brand.

How Your Company Can Leverage Its Loyal Audience

A loyal customer base can be one of your brand’s greatest assets. These customers will stay with you and be part of your brand’s story.

The global pandemic has highlighted just how important brand loyalty can be. With the world plunged into uncertainty, shoppers became more selective over which brands they trusted and wanted to spend their money with.

Brands were forced to find new ways to engage customers, drive sales, and manage stretched supply chains. The speed at which companies needed to change often resulted in the level of experience falling below the standards that customers were used to. But loyal customers stuck with their favorite brands.

While loyal customers can help you speed up growth during the good times, they can also be a lifeline during more challenging times.

Making Brand Loyalty a Priority in 2022

Brand loyalty has to be earned using the tactics we’ve listed above. It’s not easy to achieve, but it can drive outstanding results for your business when you get it right.

Put the customer a the center of your strategy and look for ways you can engage and delight your audience.

If you need some help implementing these tips at your business, book a free consultation with our award-winning team at The Keenfolks.

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