Brand Loyalty

What Is Brand Loyalty? Explained With Examples

Uncategorized 7 Mins Read
published on: 18 September 2023 last updated on: 21 November 2023

Since we are talking about brand loyalty, let me start with a simple example. 

“You keep buying your groceries from a local grocery store down the road; and when the fridge becomes empty, you would go to that grocery store only.” 

Why? Not just because they give you fresh and good quality products they sell, but also because of the experience you continuously had shopping from them. 

It is something similar to an Apple user sticking to Apple and not switching to Android. Or someone preferring Domino’s over McDonalds, Coke over Pepsi, or vice versa. 

For either of the cases, brand loyalty plays a detrimental part. So, what is brand loyalty exactly? Ever wondered? Of course, you did. That’s why you are here. So, let me make it worthwhile for you by relaying all the information you need on This. 

What Is Brand Loyalty?

What Is Brand Loyalty

Brand loyalty is reflected in a customer’s purchasing habits when they continuously choose the same brand for a commodity despite other competitors in the market. Aside from purchasing from the same brand, these customers also often develop a positive attitude toward the brand and sometimes act as an advocate of the brand. 

These customers positively perceive the brand, helping them develop good brand equity. They also become admirers and advocates of the brands and recommend them to their friends and families.

Read More: What Is Brand Marketing? Explained With Examples

Different Types Of Brand Loyalty

Businesses will usually go for different marketing tactics for building loyal customers through incentives like loyalty programs and the same. 

So, what are the different types of brand loyalty? Here is an example –

Hard Core Brand Loyalty

Hard Core brand loyalty means that the customers are enthusiastic about a particular brand. They feel positively about the brand. According to this, they had a very good experience with the brand, and they are clearly aware of the brand and have a fondness for the brand. 

No other smartphone brand creates as much hype as Apple does when they are launching a new lineup of smartphones. The high-quality status that the iPhone has built makes it one of the best brands in the world. 

Not every brand in different industries is as fortunate as Apple or similar other brands with the same level of brand loyalty. But, if your brand has gotten close to achieving that level, you should boost it by spreading more good words and good deeds. 

Split Customer Brand Loyalty

Split brand loyalty is close to its hardcore counterpart. These customers or audiences strongly prefer a few brands regarding a specific type of commodity or a product. Such customers can also be turned, but it will also be difficult because the customers are aware of the competitors in the market.

Let’s say someone goes to both Spencer and Target for grocery shopping. But, if they were made to choose between both of them, they would choose one or the other. They are aware of the alternatives they have available at their hands. 

These customers would not have any problem shopping from any of the two retail shops as long as their needs are met.

Shifting-Customer Brand Loyalty

Shifting customer brand loyalty is something that falls between hardcore and customer brand loyalty. An example of this type defines customers who can switch to a new provider after taking their necessary products or services from the other competing brand. 

For example, if there are three major telecoms in a particular country and one of them suddenly starts providing calling and cellular data for a cheaper price, then the customers will shift. It is like pledging loyalty to one brand and then shifting it to the other brand for another specific period of time. 

The same goes for people who buy yogurt. At the start, they would continue purchasing from one brand, and then they would shift to the other brand because the taste is better with the new provider.

Benefits Of Brand Loyalty

As we know, brand loyalty is the faithfulness of a customer or group of customers towards a brand. When a brand has more brand loyalty, it would mean that they have more customers who are sticking to its brand and are not willing to shift anytime soon. 

Brands with more customer loyalty tend to be more successful in the long run, with a band of customers willing to stick to their brand. 

Here are the benefits that brands get from brand loyalty: 

  • It reduces the expenditure on customer retention. 
  • Promotion through word-of-mouth. 
  • Turns out to be advantageous over the competitors. 
  • Bring in new leads and customers. 
  • Increases brand value. 
  • Brings in customers who choose to stay with the company for a long time. 
  • Increased brand recognition. 
  • Positive emotions and associations. 

Brand Loyalty Vs Customer Loyalty

Customer loyalty and brand loyalty start to develop when people get a good experience with the brand and build positive emotions and associations. However, there lies a small difference between both these concepts. Let us have a closer look at them. 

Brand loyalty is the way the consumers keep a perception of the company. It also entails the attachment of a customer to a certain brand, positive associations with a certain company, and their emotional connection. Brands implement different strategies that help establish this positive image in the minds of the customers and improve their loyalty to the brand. 

Customer loyalty, on the other hand, is all about providing customers with services and products that can meet their demands and their budgets. To reach peak customer loyalty, brands come up with special offers, discounts, and plans for affordable pricing. 

In short, if a brand provides customers with a service or product that is capable of meeting their expectations along with reasonable pricing plans, you will be able to improve customer loyalty. Customers who are loyal to a brand will always choose to buy the product they offer regardless of the price. 

4 Metrics For Measuring Brand Loyalty 

To get you a clearer image of your brand loyalty, here are the metrics that you need to focus on: 

Net Promoter Score:

Here, you need to ask the customers through a survey how likely they would recommend your brand to their friends or family. 

Repurchase Ratio:

Brand loyalty depends largely on the number of repurchases that one makes from a brand. This would mean that the customer is satisfied with what the brand has to provide and, hence, comes back for a repurchase. Through this metric, you would understand how many customers are coming back for a repurchase.

Upsell Ratio:

Through this metric, you can understand how many customers are buying new products that your company has launched, hence proving their trust in your brand. 

Customer Lifetime Value:

This metric helps you determine how much the brand can earn from the entire relationship of the customer with the brand.

Examples Of Brand Loyalty

People usually mistake brand loyalty for brand equity. Understanding the brand identity of a brand is the start of clearing all of these confusions. However, here are some examples of brand loyalty to help you better understand what it means –

Coca-Cola

Coca-Cola

Compared to the other beverage brands Coca, Cola has mastered its skills to boost brand loyalty. People love to drink Coca-Cola because they have nostalgia for the brand. 

They have still retained a massive portion of their customers after failing to promote one of their products – the New Coke.

Starbucks

Starbucks

Another example of good brand loyalty is Starbucks. If you are having coffee in the morning, you can have a good cup while spending 1/4th of what Starbucks charges you. But Starbucks always has a long line of people waiting outside for coffee. 

Their brand loyalty is why they have such a religious group of customers. Starbucks customers. Their reward programs and discounts are responsible for their success. Customers can also order through their phone apps to order their coffee. 

Nike

Nike

Nike is a favorite brand of shoes for most people out there in the world. This brand has maintained strong and continuous ties with famous athletes and sportspersons. 

Starting from Michael Jordan to the famous LeBron James and Christian Ronaldo, they all worked to endorse Nike as a brand. Most importantly, the youth perceive that Nike is why athletes like Michael Jordan are successful and famous. Nike’s brand loyalty is built on its image in people’s minds. Their popularity makes them one of the best examples of brand loyalty.

Read More: What Is Cause Marketing? Explained With Examples

Final Words 

Building good brand loyalty results in a company having more customers compared to its competitors in the market. It is as difficult as it is time-intensive. But, a brand with an intention in mind to succeed should always try to do its best.

Striving to produce and provide good quality products is a good start. Then, a brand tops it up with a good customer relationship and bonding with customers who are brand enthusiasts. Starting loyalty programs can also help a brand to boost its brand loyalty.

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tags

Brand loyalty customer engagement customer loyalty customer retention

Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.

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