Building Brand Loyalty: The Key to Long-Term Success
Speaking on the Retail Revealed stage at Top Drawer Autumn 2024
I recently had the opportunity to share my insights at the prestigious Top Drawer show in London. We explored five powerful ways in which brands can gain lifelong loyalty from customers. In this blog post, I’ll dive into key takeaways that can help your small business flourish.
A brand’s success isn't measured by how well it attracts customers — it’s about retaining them and turning them into loyal brand advocates. In today’s competitive market, the brands that go the extra mile to delight their customers are the ones that see long-term growth. But what exactly builds customer loyalty, and how can small and newer brands achieve it?
Why Brand Loyalty Matters
According to studies, 43% of consumers spend more at businesses they’re loyal to (source) and 87% (source) say they’re more inclined to be loyal to brands that share their values. It’s clear: when customers trust a brand, they’re more likely to stay loyal, advocate for it, and even defend it.
Loyal customers are also five times more likely to make repeat purchases and four times more likely to refer a friend.
In short, brand loyalty leads to higher customer retention, which reduces marketing and acquisition costs, and enables brands to build a community from those who shop with them.
1 Turn Your Customers into a Community
Forget the idea of an ‘audience’ and embrace a community. Your customers want to feel like they’re part of something bigger. Deakin & Blue, a sustainable swimwear brand, has done this brilliantly by listening to the needs of outdoor swimmers and incorporating their feedback into their products AND featuring real customers in promotional photoshoots. By showing that they are here to serve women who love swimming but may not have felt comfortable in standard swimsuits, they’ve built a loyal community of customers who feel heard and valued.
2 Understand that Design Can be a Magnet for your Ideal Customer
As a branding professional, it would be remiss of me to overlook the importance of having a well designed brand identity, with cohesive and attractive packaging and a user-friendly website. After all, you can’t gain a loyal customer if you can’t make a great impression with them in the first place. It’s the foundation on which you build upon.
An intentionally designed brand will help attract initial customers; then to keep them coming back, you must ensure that your brand makes them feel well looked after. Beauty Pie nails this with their fun unboxing experience which includes a pink box, and each item is wrapped in attractive branded tissue paper, making it feel like a personal gift to yourself. This little touch turns first-time customers into repeat buyers.
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3 Customer Service: Going the Extra Mile
Clear communication, courteous service, and efficient handling of returns and deliveries are basics. But great customer service goes beyond that.
John Lewis’s Never Knowingly Undersold price match policy is a classic example of how brands can go the extra mile to make customers feel valued.
Similarly, Hiut, a small denim brand, offers free lifetime repairs on their jeans, showing a commitment to long-term customer satisfaction. These thoughtful services create lasting loyalty.
4 Let Your Brand Values Lead
In today’s value-driven world, consumers are loyal to brands that stand for something. Pip & Nut demonstrate this beautifully by offering a way for their customers to donate a jar of their peanut butter to a local Foodbank, and by doubling any donations made this way.
Likewise, Patagonia leads by example with their sustainability credentials, and they aren’t afraid to speak out using their social media profiles either. Their social media content varies from outdoor pursuits to encouraging followers to take part in elections, and even discouraging people from buying their products in favour of making things last.
They also have one of the most loyal customer bases out there, proving that when a brand’s actions align with its values, customers take notice and stay loyal.
5 Harness the Power of Storytelling
People connect with stories, not just products.
Spanx’s origin story of founder Sara Blakely needing footless pantyhose to smooth her figure in smart trousers has become a powerful part of the brand’s narrative, connecting with millions of women.
Similarly, Purdy & Figg was born out of a desire to reduce the use of harsh chemicals in the home, a mission that resonates with their customers. Telling these stories creates emotional connections that inspire loyalty.
In Conclusion
Building brand loyalty isn’t a one-time effort; it’s an ongoing process of nurturing relationships, delivering value, and staying true to your brand’s core values. By focusing on creating an exceptional experience, sharing your story, and going the extra mile, you can build a community of loyal customers who are not just satisfied but invested in your brand’s success.