Why Should Brands Care About Loyalty?

In 2023, brand loyalty has evolved into a concept that encompasses more than just repeat purchases and familiarity with a brand. 

It now reflects a deep and genuine connection between customers and brands, driven by shared values, personalized experiences, and authentic engagement. In this time, brand loyalty goes beyond transactional relationships and embraces shared values, community-building, and social responsibility.

So why should brands care?

Repeat Business:

Brand loyal customers are more likely to make repeat purchases. They have developed trust and confidence in a particular brand, which reduces their inclination to switch to competitors. This leads to increased sales and revenue stability for the brand.

Cost Efficiency:

Acquiring new customers can be significantly more expensive than retaining existing ones. Brand loyal customers require less marketing and advertising efforts to convince them to make a purchase. Therefore, investing in maintaining customer loyalty is often more cost-effective than constantly chasing new customers.

Positive Word-of-Mouth:

Loyal customers tend to become advocates for the brand. They share their positive experiences with friends, family, and colleagues, effectively generating valuable word-of-mouth marketing. Positive word-of-mouth can lead to new customer acquisitions without additional marketing expenses.

Competitive Advantage:

In a saturated market, brand loyalty provides a competitive edge. When customers are loyal, they are less likely to consider alternatives, even when faced with lower-priced or more innovative options from competitors. This helps the brand maintain market share and stay ahead of the competition.

Higher Customer Lifetime Value:

Brand loyal customers tend to have a higher customer lifetime value (CLV). They not only make repeat purchases but also potentially become long-term customers who are more receptive to upsells, cross-sells, and new product offerings. Increasing CLV is crucial for maximizing profitability and fostering sustainable business growth.

Overall, brand loyalty contributes to a brand's success by driving revenue, reducing customer acquisition costs, enhancing reputation, and providing a sustainable competitive advantage in the market. 

You get it: loyalty is important. So how do brands and retailers build and foster loyal customer relationships? 

Many large brands have been using an app or a plastic loyalty card that consumers are expected to swipe or scan in-store. Apps are expensive to develop and requiring people to download adds an additional layer of friction. Plastic cards and inconvenient, forgettable, clunky, and not great for the environment. 

That’s why mobile wallet loyalty is the way to go. With seamless card distribution, personalization with member names and phone numbers, and direct messaging capabilities, the mobile wallet offers an effective loyalty member experience for both retail and consumer product brands. 

Enhance your current loyalty program, or build a new one, connecting promotions to retention with the mobile wallet as the centerpiece of the consumer experience.