The power of brand loyalty should not be underestimated. Even though many believe that individuals in modern society are not loyal, due to the huge choice of brands offering comparable products, that doesn’t mean that companies should dismiss brand loyalty strategies altogether. In fact, the potential financial benefits of developing an effective loyalty strategy means that it should be among your brand’s top priorities. The probability of selling your product to a customer who is loyal to your brand is between 60 and 70 percent, however this percentage can be as low as 5 percent for new customers. The opportunity for repeat business is crucial to the longevity of many businesses. If frictionless digital experiences are key to fostering customer loyalty, how can brands can best implement effective digital experiences to promote long-lasting brand loyalty?
Why is Brand Loyalty Important?
In the same way that consumer preferences have changed dramatically over recent years, the concept of brand loyalty is not the same as it once was. In the past, it may have been enough for businesses to rely on customers to repeatedly transact with them for the sake of convenience and ease. However, with the multitude of similar companies nowadays offering incentives to try their products, it has never been easier for customers to shop around and change brands. What’s more, modern society is underpinned by digital distractions and multi-channel communication, meaning that brands need to be engaging and stand out from the competition in order to capture and retain the attention of today’s consumers. Brand loyalty must now run deeper than surface-level promotions and loyalty cards. Businesses must deliver experiences across all touch points that inspire, involve and reward consumers if they wish to establish total loyalty and long-term customer relationships. By identifying what your customers truly value in your brand, and tailoring your loyalty strategies and rewards programs accordingly, you will create true brand advocates who will come back time and time again.
How Can Digital Experiences Foster Brand Loyalty?
We live in an experience economy, where the success of a company depends on the quality of the experiences that it provides for its customers. Brand loyalty is no different, engaging experiences are vital for increasing customer retention. People will always remember if they have a negative experience with a company, and this damage to a customer relationship can sometimes be irreversible. Meanwhile, personalized, and unique experiences that make consumers feel good every time they interact with your brand can go a long way to establishing emotional connections with customers. Accurate customer data helps businesses understand their audience better, and deliver the customized experiences that consumers crave and have come to expect.
Technological advancements have greatly expanded the opportunity to deliver digital experiences that foster brand loyalty. For example, a native mobile application can offer users differentiated experiences that amplify your brand’s proposition, especially compared to an app that uses the same template as its competitors. App Clips can also help brands to deliver seamless and connected digital experiences by displaying elements of native applications, including loyalty program sign-up pages at critically contextual moments, without users having to download the application itself. Being a digital-first and experience-forward business is the best way to ensure you remain ahead of the evolving expectations of the modern consumer and promote brand loyalty.
How Can Bottle Rocket Help?
Everyone is a direct competitor in today’s experience economy, a lot is weighing on a brand’s loyalty strategy to propel customer value and revenue growth. Here at Bottle Rocket, we help brands develop their loyalty strategies and create effective digital experiences that keep customers coming back.
Our experience design practice involves designing, auditing, and assessing experiences to ensure that your customers are placed at the forefront of your brand loyalty strategy. One thing is certain, offering contextual, personalized and frictionless digital experiences for your customers is a sure way to unlock brand loyalty for the long term.