Feb 11, 22 | 5 min read
Brand loyalty declining
Reading time: 5 minutes
A study of 2,000 people in the US and UK by Edit, a customer data specialist, and Kin + Carta, a digital transformation consultancy, reveals that more than a quarter (27.4%) of consumers no longer show any loyalty to brands.
Among those surveyed, only 6% of consumers said they show loyalty to the e-commerce sector. Paradoxically, what we have seen in the last 2 years, due to the COVID-19 pandemic, has been a significant increase in online shopping .
Source: 'The Loyalty Paradox', by Edit & Kin + Carta
The pandemic has changed consumer behavior and also accelerated several changes in the retail sector. That is why we need, more than ever, to be aware of the experience we are providing to our customers. Otherwise, we will end up losing strength in the market.
Repeat purchases are not loyalty
In addition to purchase frequency, a company list of tunisia consumer email that establishes strong brand loyalty can ensure that its consumer trusts, engages, advocates and recommends products and services. In this way, a strong bond is created between the brand and the customer that goes far beyond a buying and selling relationship.
Apple is a great example of a brand that has, over the years, built strong loyalty . Research shows that Apple has the most loyal smartphone customers in the US, with over 90% of consumers saying they intend to purchase another iPhone .
That's a high percentage. And that doesn't mean that the competition is weak or that the products are inferior, but that Apple provides a complete customer experience and the brand positioning connects with its consumers.
The relationship is so strong that customers have stickers, t-shirts and even tattoos with the Apple logo! This is also true for Harley Davidson, for example: customers don't just buy a motorcycle, they buy an experience of the brand's culture and lifestyle .
There are other good examples of companies that do this well and, as a result, have high brand loyalty. You may have thought of Coca-Cola, Disney, Starbucks, or others.
But after all, how do you create brands that attract, engage and retain engaged customers?
Build real connections
How did Apple, Coca-Cola and Harley-Davidson create such strong loyalty and bonds? What do they have in common?
These brands sell much more than the product or service itself. They sell happiness (Coca-Cola), innovation (Apple) or lifestyle (Harley Davidson). The entire communication and positioning strategy is built around their ideals and that creates a deep connection with the consumer.
It may sound cliché to say it here, but the point is: do you want to create a memorable brand? You really need to start with the “why.” Clearly understand your brand’s purpose and how it creates a real connection with your audience’s needs and desires. What is the reason they choose you as a company? How does that differentiate you in an increasingly saturated market?
The TED talk “ Start with Why ” by Simon Sinek is worth watching and rewatching .
Focus on customer experience
Ok! We know that it is essential to have a well-defined purpose, to be clear about how you connect with the public and, based on that, to develop an organizational strategy.
But what the research reveals is that “brand affinity through emotional connection has weakened to be replaced by habitual ties based on lived experiences and relationships with brands and retailers.”
In this scenario where brand loyalty is losing strength and the creation of deep connections is losing ground in the face of rapid market volatility and purchasing opportunities, providing positive customer experiences becomes crucial.
Customer experience is defined by the interactions they have with your brand, whether directly or indirectly. To ensure a good customer experience, the first step is to have a holistic and complete view of the entire customer journey (before, during and after the purchase).
As much as we have been talking about it for years, in practice it is not yet so widespread: according to another survey by Kin + Carta , more than half of companies (55%) do not have a single, complete view of all customer interactions.
