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What is brand loyalty?

Brand loyalty is the positive feelings towards a brand and dedication to purchase the same product or service repeatedly, regardless of deficiencies, a competitor's actions or changes in the environment. It can also be demonstrated with other behaviors such as positive word-of-mouth advocacy.

1. Customers that are loyal to your brand have 60-70% higher chance to purchase with you again

Repeat business is cheaper than new business. In fact, acquiring a new customer is as much as 25 times more expensive than keeping an existing one. Longtime customers don't require the extensive marketing efforts that potential customers do.

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

Building a sense of brand loyalty is important for any business as it directly correlates to an increase in customer retention rates and a decrease in churn rate. Brand loyalists will advocate on the company's behalf, driving word-of-mouth marketing.

2. Acquiring new customers costs more than maintaining your existing customers

There's an opportunity here to focus more on existing customers, rather than chasing down new ones. The solution that's proven to work is staying in touch on a regular basis. By staying in touch using content marketing, email marketing, and social media marketing, you can see success in multiple ways: staying in touch with your current customer base; reminding customers of upcoming events; maintaining a professional appearance; reaching out to clients you haven't talked to in years; and getting more referrals.

3. Loyal customers advocate for you — one of the cheapest marketing efforts you can have

Loyal customers are knowledgeable about your product, experienced with the service, and can be eager to talk about it. They serve as an unbiased source of information. Provide channels for feedback using social media. Social media platforms like Instagram and Twitter give users a channel for identity expression, and a great way for you to encourage user-generated content (UGC).

4. People loyal to a brand are more likely attached on an emotional level, therefore more likely to buy additional products

When companies connect with customers' emotions, the payoff can be huge. After a major bank introduced a credit card for Millennials designed to inspire emotional connection, use among the segment increased by 70% and new account growth rose by 40%. (— Harvard Business Review)

Identifying and leveraging customers' emotional motivators can be broken into three phases:

First, inventory your existing market research and customer insight data, then pursue research to add detail to your understanding of those emotions.
Second, analyze your best customers — those who buy and advocate the most, are the least price-sensitive, and are the most loyal — and compare their emotional motivators with your overall customer base.
Third, make the organization's commitment to emotional connection a key lever for growth. Use the language of emotional connection across the firm, not just in marketing.

5. Simple math: more loyal customers, more stable revenue, less marketing cost, bigger community and word of mouth

Increasing customer retention by just 5% will increase profit by 25%. The effort it takes to create loyal customers has a great return value, and this value means sustainability. Repeat customers provide the sturdy foundation your business needs to not only survive but flourish.

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Brand Loyalty = Higher Revenue. Here's why;