Brand loyalty is crucial for brands who want to survive in the never-ending sea of options. As e-commerce expands, it can be difficult to set yourself apart from competition and the vast landscape of the online shopping experience. With similar products flooding the market, how do you differentiate and become the brand that consumers not only switch to, but become repeat customers? It is important to note that brand loyalty does not come from offering the lowest prices or the best deals, it is about creating an emotional and engaging connection that resonates with consumers.
On average, brands actually spend up to 11 times more on recruiting new customers than retaining existing ones (Brand Keys Customer Loyalty Engagement Index).
As the largest generation, Millennials are the biggest influence on the market. As their buying power increases, they will continue to shape the shopping experience. This generation is faced with the harsh reality that our consumption habits are having a lasting and possibly irreversible negative effect on the world, causing these consumers to look to align with brands who do more than operate for profit.
It’s not just the younger generation that cares about positive impact, all consumers are interested in building authentic relationships with brands that give back and do more than just operate for a profit.
63% of Americans are hopeful businesses will take the lead to drive social and environmental change moving forward, in the absence of government regulation (2017 Cone Communications CSR Study).
Your corporate social responsibility strategy should be a top priority as consumers are watching the way brands are stepping up to the challenge.
So, what can you do to turn a one time customer into a customer for life?
The correlation between giving back and brand loyalty is obvious, yet many brands still have a hard time investing in their corporate social responsibility strategies. Which is why sometimes we need to be reminded that giving back is good for your bottom line.Consumers who are loyal to your brand are more likely to:
- Be repeat customers
- Willing to pay extra for your products over a competitor’s product
- More likely to recommend your company to others
In terms of sales, brands that are viewed as making the world a better place have seen their profits grow up to 9 times more than companies who are not (Havas’ Meaningful Brands 2019 report).
When it comes to giving back, buyers on average spend 26% more and retailers can see 29% more sales (Journal of Consumer Research).
Furthermore, you’ll show that you are committed to having a positive social impact while your competitors may not realize the potential of profits through CSR. To increase your brand loyalty, it is important to create meaningful relationships and to be transparent and authentic with consumers.