The basics of brand loyalty and how you can start building it with your customers
If you asked someone their favorite grocery store, or mobile carrier, or airline, chances are they’d have an answer. Whether it’s a service, design, or product, customers develop loyalty to brands they connect and engage with in a positive way.
In a time of many choices, brand loyalty may feel fleeting for some businesses. But some brands have learned through creating and innovating how to delight and retain their customers. In this guide, we’ll dive into what brand loyalty is and why it’s important for advertisers to include in their marketing strategy.
What is brand loyalty?
Brand loyalty is when customers continue to purchase from the same brand over and over again, despite competitors offering similar products or services. Not only do customers continue engaging and purchasing from the same brand, but they also associate positive feelings toward that brand. Brand loyalty has a lot to do with how customers perceive your brand, its actions, and its values. And it’s an important way to help retain customer loyalty and increase repurchase rates.
What’s the difference between brand loyalty and customer loyalty?
Brand loyalty and customer loyalty may seem synonymous, but they’re not. Customer loyalty focuses on the customer’s spending. For instance, brands can create customer loyalty by offering lower prices, discounts, and rewards programs–this is also known as transactional loyalty. In 2020, a worldwide survey by Statista found that 62% of customers were loyal to a brand because of their prices.1
Whereas brand loyalty focuses on customer perception, which can also be considered emotional loyalty. How do customers see your brand? How do customers feel about your brand? Brand loyalty can be associated with so much more than the price of products; it’s also developed by how customers see, feel, and value your brand. In the same worldwide Statista survey, 57% of customers had loyalty to a brand based on customer service, and 54% felt loyalty based on product or service offerings.2
3 examples of brand loyalty
Now that we’ve gone over how to build brand loyalty, here are three examples of brands who have used strategies to grow their businesses, increase their customer base, and drive brand loyalty with their audiences.
Govee used quality content to increase brand loyalty
Govee, a lighting company, wanted to expand their brand awareness with Amazon shoppers. By leveraging Amazon Ads solutions like Stores and Posts, they helped shoppers discover their products more easily. Govee used high-quality content, like illustrative photos and detailed product descriptions, to help showcase their products to customers, which helped them build awareness, consideration, and trust. This immersive shopping experience helped Govee develop a connection with their shoppers, which ultimately helped them cultivate brand loyalty.
How GHD stayed top-of-mind for shoppers
GHD, which is short for “good hair day,” wanted to transform the lives of women by giving them a good hair day with their products. In order to drive brand loyalty, GHD used Amazon Ads’ Sponsored Display to help reach their goal, which was to keep GHD’s display ads showing above the fold in its product details page. By staying top-of-mind for shoppers, GHD helped drive consideration and brand loyalty.
Adjapparel used keywords to help expand their business
Adjapparel is a leading wholesale company, and in 2018 they started selling their own apparel line in Amazon’s store. They wanted to expand their digital strategy and drive sales. Knowing that apparel customers have strong brand loyalty, they worked with the Amazon Ads team to develop a keyword strategy, which focused on utilizing generic, non-branded keywords when they started their marketing campaign to maintain low ACOS goals and drive campaign efficiency. With this method, they were able to increase awareness for their brand, while building brand loyalty with new customers.
Creating brand loyalty with Sponsored Display
Brands looking to increase brand loyalty may want to consider reengaging with customers who have already purchased from them previously. With Sponsored Display purchase remarketing, advertisers can create campaigns that help existing customers discover new products your brand has to offer on and off Amazon.
1“Leading factors in keeping consumers loyal to brands worldwide as of February 2020,” Statista, global, September 2021.
2“Leading factors in keeping consumers loyal to brands worldwide as of February 2020,” Statista, global, September 2021.