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Brand Loyalty Benefits & Examples

Nathan Mahr, Shawn Grimsley
  • Author
    Nathan Mahr

    Nathan has taught English literature, business, social sciences, history, and writing for over five years. He has a B.A. in Comparative History of Ideas from the University of Washington.

  • Instructor
    Shawn Grimsley

    Shawn has a masters of public administration, JD, and a BA in political science.

Explore examples of brand loyalty. Learn the definition of brand loyalty, how it is used in marketing, and some ways of increasing and leveraging brand loyalty. Updated: 08/16/2022

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What is Brand Loyalty?

Brand loyalty is defined as when a customer chooses to repeatedly purchase a product or service from the same company over other substitute products. In many cases, this even occurs when there are cheaper or better alternatives available. Brand loyalty is often seen as a result of customer satisfaction with a product or service.

Brand loyalty and loyal customers offer several important benefits to companies. Loyal customers can result in companies saving money on marketing costs as well as experiencing increased profits and revenues. Companies can also rely on loyal customers to help promote their brand through word-of-mouth marketing. Brand loyalty is common in many industries, such as beauty, fashion, and technology. It is something that marketing departments and businesses often strive for.

There are a few key things that contribute to brand loyalty. First, customers need to be satisfied with the product or service. Second, they need to feel a connection to the brand. And finally, they need to have a positive customer experience. Satisfied customers are the foundation of any brand loyalty program. If customers are not happy with the product or service, they will not continue to purchase it. It is important to make sure that customers are happy with every aspect of their experience, from the product itself to the customer service they receive.

Brand Loyalty in Marketing

As previously mentioned, brand loyalty is the tendency of a customer to purchase only from one particular brand. Although customer satisfaction plays a big role in brand loyalty, there are other factors that contribute to it as well. For example, a customer may feel a sense of connection or emotional attachment to a product. This emotional attachment can be created through various marketing techniques, such as advertising and public relations. It can also be established through the customer's personal experiences with the company, such as positive customer service interactions.

There are several different ways to segment brand loyalty into different types and groups. Some of the most commonly considered types include:

  • Hardcore loyalty: These customers will only purchase from one brand, no matter what.
  • Switching loyalty: Customers that exhibit this behavior are willing to switch brands based on price, promotions, or other factors.
  • Split loyalty: These customers typically choose between two or three brands for a particular product or service and will only purchase from those brands.
  • No loyalty: Customers that fall into this category are not loyal to any one brand. They purchase based on price, convenience, or other factors.

As can be seen, brand loyalty can differ greatly from customer to customer. Marketers must understand what type of loyalty their target audience has when developing and deploying marketing campaigns. When designed effectively, marketing campaigns combined with positive brand experiences can help to increase brand loyalty among customers and shift them into the hardcore loyalty category.

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Brand Loyalty Examples

There are many examples of brand loyalty in the business world. Some of the most common and well-known examples include:

  • Apple: Customers that purchase Apple products often do so because they are loyal to the brand. Through its marketing and advertising campaigns, Apple has built a strong emotional connection with its customers. The company has also created a great customer experience, which keeps customers coming back.
  • Nike: Nike has spent tremendous effort to create a brand that customers can identify with. The company has built a strong emotional connection with its customers by using athletes as ambassadors and applying marketing campaigns that focus on customer motivation.
  • Coca-Cola: Coca-Cola is another company that has built a strong emotional connection with its customers. The company's advertising campaigns have focused on happiness, fun, and togetherness, which has helped to create a strong customer base.

As these examples illustrate, there are a number of different ways to create brand loyalty. It is important for marketers and businesses to understand the needs and wants of their target audience in order to create a brand that customers can identify with and be loyal to.

How to Increase Brand Loyalty

There are many strategies that businesses use in order to increase brand loyalty among their customer base. Before considering the question of how to increase brand loyalty, it is important to distinguish between brand loyalty and customer loyalty.

Brand loyalty is when a customer has a strong emotional attachment to a company, brand, or product. This emotional attachment can be created through various marketing efforts, such as advertising, public relations, and customer experience. Customer loyalty, on the other hand, is when a customer makes repeat purchases from a company or brand. While customer loyalty is important, it does not necessarily mean that the customer is emotionally attached to the company or brand. For example, a significant change in price would be more likely to affect customer loyalty than brand loyalty.

There are several strategies that businesses use to increase brand loyalty among their customers, ranging from customer loyalty programs to providing an exceptional customer experience. These strategies are often conducted simultaneously in order to create a well-rounded approach. After brand loyalty has been gained, it can be leveraged in a number of ways. One possible way to leverage brand loyalty is to use it to create loyalty for other products. For example, a customer that is loyal to a particular brand of clothing may be more likely to purchase other products from that same brand.

Ways to Build Brand Loyalty

As previously mentioned, there are a large variety of ways companies attempt to build brand loyalty. Some of the most common methods include:

  • Quality products: Offering quality products is one of the most important ways to build brand loyalty. Customers that are satisfied with the products they purchase are more likely to come back and purchase them again in the future.
  • Customer service: Providing excellent customer service is another key way to build brand loyalty. Customers that have a positive experience with customer service are more likely to be loyal to the company or brand.
  • Rewards programs: Rewards programs have become an increasingly popular and common way that companies build brand loyalty. These programs work by giving customers points or discounts for making purchases, which can be redeemed for future purchases. Customers that feel like they are being rewarded for their loyalty are more likely to continue to make purchases from the company or brand.
  • Social media/online community: Having a strong social media presence or online community has also become an increasingly important way to build brand loyalty. Customers that feel like they are part of a community are more likely to be loyal to the company or brand.
  • Brand ambassadors: Brand ambassadors are typically influencers that have a large following on social media. Companies will often work with brand ambassadors to promote their products or services. Customers that see their favorite influencers using and enjoying a product are more likely to be interested in the product and potentially become loyal to the company or brand.

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Frequently Asked Questions

What is an example of brand loyalty?

An example of brand loyalty is if a customer always buys the same brand of toothpaste, even if there are other brands that are cheaper or have more features. This is because the customer has developed a strong emotional attachment to that particular brand of toothpaste.

What is brand loyalty and why is it important?

Brand loyalty refers to when customers repeatedly make purchases of the same product over similar substitute products. These customers have typically developed a strong emotional bond with the product or service. Brand loyalty can be an important source of revenue and growth for companies. It can also lead to other benefits, such as increased profits, allowing for premium pricing, lowered marketing costs, and lower production costs.

What are the types of brand loyalty?

There are several types of brand loyalty depending on how customers behave and how observers segment that behavior. Some common types include hardcore loyalty, switching loyalty, split loyalty, and no loyalty. Each type of loyalty has different customer behaviors and outcomes associated with it.

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