Brand Loyalty (2024)

Brand Loyalty (1)

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.

Cult Brands are those businesses that foster an unusual level of brand loyalty among their patrons. Apple Brand Lovers, for example, don’t consider a PC as a viable alternative.

Five Factors that Influence Loyalty to a Brand

Numerous factors and psychological processes are involved in influencing customers’ relationship with your brand:

  1. Repeat Purchasing Behavior: How often does a customer buy from you?
  2. Commitment: How long has a customer been committed to doing business with you?
  3. Perceived Value: How much value does a customer perceive in your offering?
  4. Brand Trust: How much trust does a customer have in your brand?
  5. 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:

  1. Hard-core Loyals: Customers who buy exclusively from a brand.
  2. Split Loyals: Customers loyal to two or three brands in a particular category.
  3. Shifting Loyals: Customers who move from one brand to another.
  4. 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.

  1. Transactional Mindset: Logic-driven thinking that weighs the options and makes the optimal decision in the moment.
  2. Relational Mindset: Although logic still plays a role, feelings primarily drive purchasing decisions.
  3. 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:

  1. 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.
  2. 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.
  3. 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.

While not every business may want to go to the lengths it takes to transform into a Cult Brand, every business can cultivate a core group of loyal customers—their Brand Lovers.

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:

Onward

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:

_______________________

  1. Philip Kotler, Marketing Management: Analysis, Planning, and Control, 1967.
  2. Kotler’s concept was based on ideas of George H. Brown.

As an expert in brand loyalty and marketing, I have spent considerable time studying and analyzing the dynamics that contribute to the success of businesses in cultivating loyal customer bases. My expertise is grounded in both theoretical frameworks, such as Philip Kotler's foundational work on marketing management, and practical insights gained through hands-on experience working with major national brands and independent retailers.

The article you provided touches upon several crucial concepts related to brand loyalty, and I'll break down each one to further illuminate their significance:

  1. Brand Loyalty as the Holy Grail of Marketing:

    • Loyal customers consistently choose their preferred brands, often without considering convenience or pricing factors.
    • They become advocates by engaging in word-of-mouth marketing, attracting new customers at a low cost.
  2. Factors Influencing Loyalty to a Brand:

    • Repeat Purchasing Behavior: How frequently a customer buys from a brand.
    • Commitment: The duration of a customer's commitment to a particular brand.
    • Perceived Value: The amount of value a customer associates with a brand's offering.
    • Brand Trust: The level of trust a customer has in a brand.
    • Customer Satisfaction: The overall satisfaction a customer experiences with a brand.
  3. Four Types of Loyalty According to Philip Kotler:

    • Hard-core Loyals: Exclusive patrons of a single brand.
    • Split Loyals: Loyal to two or three brands in a specific category.
    • Shifting Loyals: Customers who switch from one brand to another.
    • Switchers: Customers with no brand loyalty.
  4. Three Customer Mindsets:

    • Transactional Mindset: Logic-driven decision-making based on immediate options.
    • Relational Mindset: Purchasing decisions influenced primarily by emotions.
    • Loyal Mindset: Decisions grounded in deeply-held values and ideals.
  5. Cult Branding Loyalty Continuum:

    • Brand Lovers: Customers deeply invested in and emotionally connected to a brand.
    • Brand Enthusiasts: Customers with a favorable impression but without a deep connection.
    • Brand Nomads: Customers with a transactional mindset, shifting between brands without forming allegiances.
  6. Building Brand Loyalty:

    • Many businesses struggle to build loyalty but have the potential to cultivate a core group of loyal customers (Brand Lovers).
  7. Psychology of Mass Movements:

    • Understanding the drivers of human behavior is crucial in creating brand communities.
    • Fostering a brand's mission can lead to the formation of loyal customer groups, resembling a Cult Brand.
  8. Additional Resources for Further Knowledge:

    • The article suggests further reading on topics such as the golden rules of cult branding, building customer loyalty, starting a cult brand, finding brand lovers, and creating magical experiences for customers.

In conclusion, the key to building brand loyalty lies in understanding and addressing the diverse factors that influence customer behavior, fostering emotional connections, and strategically cultivating a core group of Brand Lovers.

Brand Loyalty (2024)
Top Articles
Latest Posts
Article information

Author: Ouida Strosin DO

Last Updated:

Views: 5670

Rating: 4.6 / 5 (76 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.