The 2021 Trend of Rising Brand Loyalty: Insights and Strategies
The 2021 Trend of Rising Brand Loyalty: Insights and Strategies
Table of Contents
- The Importance of Customer Loyalty
- Consumer Sentiment on Loyalty Pre-COVID
- The Impact of COVID-19 on Customer Loyalty
- Brands that Excel in Building Loyalty
- The Rise of Empathy in Driving Loyalty
- Brands Becoming Part of Our Identity
- The Growing Significance of Devotion
- Creating Experiential Rewards
- The Evolution of Loyalty Programs
Hello everyone, my name is Robin and I am a senior partner manager at Yappo. Today, I am excited to talk about the state of loyalty in the UK in 2021. We conducted a survey earlier this year, gathering data from a thousand UK-based respondents across different demographics. In this article, we will explore the findings of our survey and uncover the trends and insights surrounding customer loyalty in the current retail landscape.
The Importance of Customer Loyalty
In a highly competitive market, customer loyalty plays a crucial role in the success of any business. Acquiring new customers can be costly, with acquisition costs often exceeding the lifetime value of a customer. Therefore, it is essential for brands to focus on retaining and nurturing their existing customer base. Loyal customers not only generate repeat business but also serve as brand advocates, spreading positive word-of-mouth and attracting new customers. Building loyalty should be a top priority for businesses looking to thrive in today's market.
Consumer Sentiment on Loyalty Pre-COVID
Before delving into the impact of COVID-19 on customer loyalty, let's take a look at the prevailing sentiment on loyalty before the pandemic. Many articles and studies in recent years have highlighted the decline of customer loyalty and the decreasing number of brand loyal customers. However, our survey results challenge these notions. We found that consumer loyalty has actually been trending upwards over the past year. More respondents rated themselves as being more brand loyal compared to the previous year. This suggests that loyalty is still a significant factor for consumers, and brands have the opportunity to capitalize on this sentiment.
The Impact of COVID-19 on Customer Loyalty
The onset of the COVID-19 pandemic has brought about unprecedented changes in consumer behavior and expectations. Our survey revealed that the pandemic has had a mixed impact on loyalty. While some consumers reported feeling more loyal to brands during these challenging times, others experienced a decrease in loyalty. The key to maintaining or even strengthening loyalty lies in empathy. Brands that demonstrate genuine empathy and support for their customers have seen an increase in loyalty. By understanding and addressing the needs of customers during this crisis, brands can forge stronger connections and build lasting loyalty.
Brands that Excel in Building Loyalty
Now, let's explore some examples of brands that have excelled in building customer loyalty. One such brand is Chubbies, which has successfully bridged the gap between online and offline experiences. Their loyalty program incentivizes engagement through various actions, such as following them on social media and visiting their stores, creating a sense of involvement throughout the customer journey. Other examples include The North Face, which offers aspirational rewards, and TOMS, a brand known for its commitment to charitable causes. These brands understand the power of creating a connection between the brand and the consumer, fostering loyalty and advocacy.
The Rise of Empathy in Driving Loyalty
One of the significant findings from our survey is the impact of empathy on loyalty. As the pandemic brought people together in a shared experience, consumers expressed a greater sense of loyalty to brands that demonstrated empathy during these challenging times. This presents an opportunity for businesses to cultivate empathy-driven loyalty even as the world returns to normal. By focusing on retaining online customers and converting them into offline customers, brands can leverage the power of empathy to build stronger connections and loyalty.
Brands Becoming Part of Our Identity
Our affinity with the brands we choose to support has become an increasingly important aspect of our identity. According to our survey, an overwhelming 82% of respondents expressed a preference for brands whose values align with theirs. Brands that showcase their values and actively engage customers in meaningful ways have the potential to foster deeper connections and loyalty. Take, for example, Patagonia, which offers resources for environmental activism, or Blind Barber, which integrates charitable donations into their loyalty program. By encouraging community involvement and aligning with customers' values, these brands have elevated themselves beyond their product offerings.
The Growing Significance of Devotion
Our survey revealed that consumers are not only willing to join loyalty programs but also willing to spend more on brands they are loyal to, even if cheaper options are available elsewhere. Devotion to a brand goes beyond discounts and free shipping; it stems from shared values and a sense of connection. Brands that reward loyalty and create exclusive experiences for their customers are more likely to see increased customer spend. Play and Moroccan Oil serve as excellent examples, offering unique rewards and early access to sales and products. By fostering devotion, these brands have built a loyal customer base that feels connected and valued.
Creating Experiential Rewards
In addition to traditional loyalty program benefits such as free shipping and discounts, consumers are increasingly seeking experiential rewards. Early access to sales and new products has become highly desirable among consumers. Brands that offer personalized offers and recommendations tailored to their customers can tap into this desire for exclusivity and create a sense of anticipation and engagement. Companies like Moroccanoil and Sonucci have effectively implemented tiered rewards systems and created a feeling of belonging among their customers. By going beyond transactional rewards, these brands have elevated their loyalty programs to a higher level.
The Evolution of Loyalty Programs
As customer expectations continue to evolve, loyalty programs must adapt to meet these changing needs. Instead of viewing loyalty programs as a post-purchase attempt to encourage repeat visits, businesses should approach them as membership clubs. Creating a sense of community and offering personalized experiences can generate a deeper level of engagement and loyalty. Segmenting customers based on their engagement level, such as unenrolled shoppers, one-time shoppers, and loyalists, enables brands to tailor their loyalty initiatives and nurture ongoing relationships. By investing in emotional connections and focusing on the customer experience, brands can drive customer loyalty and increase customer lifetime value.
In conclusion, customer loyalty remains a vital aspect of modern business strategies. Through our survey, we have seen an encouraging trend of rising loyalty among consumers. Empathy, brand values, and experiential rewards have emerged as key drivers of loyalty. By understanding and fulfilling customer needs, brands can build meaningful connections and cultivate loyalty. As the retail industry continues to evolve, loyalty programs must evolve as well, embracing the concept of membership clubs and prioritizing customer experience. Brands that prioritize loyalty will be well-positioned to thrive in the increasingly competitive marketplace.
- Customer loyalty has been trending upwards, with more consumers rating themselves as more brand loyal than the previous year.
- The COVID-19 pandemic has had a mixed impact on loyalty, highlighting the importance of empathy in driving loyalty.
- Brands that showcase their values and actively engage customers can foster deeper connections and loyalty.
- Devotion to a brand goes beyond discounts and free shipping, with customers willing to spend more on brands they are loyal to.
- Experiential rewards, such as early access to sales and new products, are highly desired by consumers.
- Loyalty programs should evolve into membership clubs, focusing on emotional connections and personalization.
- Segmenting customers based on their level of engagement enables brands to tailor loyalty initiatives and nurture ongoing relationships.
I am a shopify merchant, I am opening several shopify stores. I use ppspy to find Shopify stores and track competitor stores. PPSPY really helped me a lot, I also subscribe to PPSPY's service, I hope more people can like PPSPY！ — Ecomvy
To make it happen in 3 seconds.
- App rating
- Shopify Store
- Trusted Customers
- No complicated
- No difficulty
- Free trial