Loyal customers consistently do business with their preferred brands, often without evaluating convenience or pricing factors. These loyal customers are also more likely to tell their friends and family about the brand (called word of mouth), creating a low-cost stream of new customers.
Given these valuable attributes, it’s easy to understand why loyalty is considered the holy grail of marketing.
Loyalty Isn’t An Accident
Companies that foster brand loyalty go to great lengths to understand their customers’ needs and meet those needs better than anyone else.
These companies seek to create loyal customer evangelists, or what we call Brand Lovers. Creating Brand Lovers requires diligent effort on the part of executives to adopt a highly customer-centric approach to marketing, product development, and operations.
Five Factors that Influence Loyalty to a Brand
Numerous factors and psychological processes are involved in influencing customers’ relationship with your brand:
- Repeat Purchasing Behavior: How often does a customer buy from you?
- Commitment: How long has a customer been committed to doing business with you?
- Perceived Value: How much value does a customer perceive in your offering?
- Brand Trust: How much trust does a customer have in your brand?
- Customer Satisfaction: How satisfied is a customer with the overall brand experience?
Four Types of Loyalty
Marketing professor Philip Kotler suggest four groups of customer types that demonstrate similar behavioral patterns in respect to brand loyalty:
- Hard-core Loyals: Customers who buy exclusively from a brand.
- Split Loyals: Customers loyal to two or three brands in a particular category.
- Shifting Loyals: Customers who move from one brand to another.
- Switchers: Customers with no sense of loyalty to any brand.1 2
Three Customer Mindsets
There are three primary customer mindsets important to understanding the factors behind brand loyalty. Every customer engages in all of these behaviors at different points throughout their lives.
- Transactional Mindset: Logic-driven thinking that weighs the options and makes the optimal decision in the moment.
- Relational Mindset: Although logic still plays a role, feelings primarily drive purchasing decisions.
- Loyal Mindset: Decisions are based on deeply-held values and ideals.
The Cult Branding Loyalty Continuum
Over nearly two decades at The Cult Branding Company, we have identified three primary patterns of behavior among customers:
- Brand Lovers: Customers a brand is especially for; those customers who love the brand the most and who may not perceive any alternative to the brand’s offering. Brand Lovers have an emotional investment in the brand. They feel their values align with the brand’s.
- Brand Enthusiasts: Customers who have a favorable impression of a brand but don’t necessarily have any investment or a deeper connection to the brand.
- Brand Nomads: Customers with a transactional mindset (see above) who shift from brand to brand without forming any brand allegiances.
The Key to Building Brand Loyalty
The truth is that most businesses struggle to build brand loyalty.
In fact, many executives at large corporations don’t even believe that building brand loyalty is possible, opting instead to exclusively focus on driving the next transaction. In our experience working with major national brands as well as independent retailers, building brand loyalty is most certainly possible.
Of course, we have a lot of evidence for this claim. A quick look at Cult Brands highlights the extraordinary level of brand loyalty some businesses have achieved with their customers.
Focusing on your Brand Lovers is the key to building brand loyalty.
The Psychology of Mass Movements
Brand loyalty becomes less elusive when you understand the various drivers of human behavior. You don’t need to be a psychologist to appreciate that we, as humans, aren’t always aware of why we do what we do.
It’s one thing to create a loyal customer; it’s another to foster brand communities where groups of people band together around your brand’s message.
When you see groups of people joining a brand’s mission, you see a Cult Brand in action. How does it happen? And what can you do to help your brand build a following of loyal customers?
Using Apple as an ideal example, take a look at how you can create a mass movement:
If you’re looking to further your knowledge on brand loyalty and how to cultivate it for your business, here’s a hand-picked selection of related articles:
- The Seven Golden Rules of Cult Branding
- How to Build Customer Loyalty in The Age of Skeptics
- How to Start a Cult … Brand
- A Proven Method to Find Brand Lovers
- Eight Steps to Building Brand Loyalty
- What Smart Marketers Can Learn From Customer Tattoos
- How Cult Brands Create Magical Experiences for Customers
- Beyond Brand Loyalty Programs: 5 Ways to Create Loyal Customers