Brand loyalty is disappearing or maybe it has already slipped away. Not too long ago, many people would make purchases without even considering another option purely based on prior experiences with a company, but this no longer seems to be the case. These relationships seem to be falling apart. Maybe it is in part due to the increased ease of online purchasing where we can be immediately bombarded with multiple offers and options, varying prices, and speedy delivery times or maybe it is due to increased price sensitivity and the best or lowest offer wins or maybe it is due to companies becoming complacent and lacking in the customer service arena in the ongoing effort to cut costs and increase profits.  As companies head into the Holiday Shopping season facing increasing competitive pressure, now may be the perfect time for them to take a step back and focus their efforts on trying to revive this tradition.

There is a lot of challenging work that goes into developing and growing Brand loyalty including but not limited to the ever-growing number of Rewards programs offered for being a loyal shopper, using the same credit card or opting in to receive emails and text messages. First and foremost, consumers must be aware of the product or service you are offering. Second, you must find the right channels to educate them about your offering, because as we have all heard, an educated consumer is a loyal consumer. A loyal consumer is important not only because they develop into repeat purchasers, but they provide free and impactful advertising. In the world of social media and Influencers, Word-of-Mouth advertising is even more valuable than in the past, due to the number of channels and constant immediate access to millions of people all over the world. The power of the influencers can be measured not only by the number of followers they have but by the sales they generate. Word-of-mouth advertising in many ways has more reach and can or may already be more impactful than print ads or television, especially with the increase in streaming services and the declining number of subscribers to magazines and newspapers.

Brand loyalty is influenced by many factors:  brand image, brand trust, perceived quality, product quality, brand reputation, pricing, promotional activity, customer satisfaction, influencers and marketing that connects with the consumer on some level. These beliefs do not just happen though. As with any relationship, they are cultivated over time. They require effort, more so on the company’s part to consistently deliver quality products while consistently engaging with the consumer in a positive manner.

As brand loyalty develops, the consumer passes through stages. First, they will develop Brand Recognition. The name, the logo, a catchy jingle that will always bring that specific company to mind. There is an emotional connection starting to develop. Sports teams are a notable example of this, think of the Yankees NY and the home pinstripe uniforms, the Red Coke can, the Nike Swoosh.  Consumers recognize these logos and begin to develop a connection through this recognition and try their products, once they find one they like they are much more willing to try the next one, and the next one…they may venture off to an offering from another company or just other products from the same companies, but they will find their way back.  This than leads them to develop a Brand preference. Once Brand preference is developed, the company must continue to not only deliver on their promises, but also maintain the emotional connection with the consumer as well as continually meet or exceed their expectations. This consistency over time is what will lead to Brand Insistence or Brand Loyalty, the desired outcome.

This emotional attachment is the strongest form of loyalty, and often what leads the consumer to driving further to shop in your store, waiting for a product instead of moving on to the next offering and in some cases, paying more because they know they can trust you. But as we all know, trust is something that can easily be broken and hard to repair, so companies need to be careful with it. A brands reputation is based not only on the quality of the product but by the human interactions that take place during the process.

Brand loyalty occurs when a company can engage the consumer in an emotional connection about something that not only has perceived value but personal relevance to them. This, like all relationships, develops and is built over time but can be irreparably harmed in an instant. When a company delivers consistent quality and satisfaction to a consumer, there is trust. Trust that the goods or services being purchased will consistently meet or exceed their expectations. They associate positive experiences with the company or product, and this is what makes them continue to make repeat purchases and what makes companies profitable.