It’s common to run across people who are dedicated to their favorite products from their favorite brands. Whether it’s the energy drink your neighbor drinks every afternoon, the cleaning products your in-laws swear by, or the computer model your friend has used for the past ten years, you’re surrounded by examples of brand loyalty every day.
As an ecommerce business owner, you can tap into the power of brand loyalty to keep customers coming back to your store—and recommending it to their friends. To get started, you need to understand what brand loyalty is and why it’s such a powerful concept.
What Is Brand Loyalty?
Brand loyalty is a customer’s tendency to consistently choose one brand over others. Loyalty is driven by positive experiences, trust, and satisfaction with the brand. For ecommerce businesses, brand loyalty leads to repeat purchases, higher customer lifetime values, and positive word-of-mouth referrals. It also helps stores differentiate themselves in a crowded market and maintain a stable revenue stream.
Picture a customer who keeps coming back to an online store for their running shoes. They’ve tried the products, loved the quality, and now trust the store to deliver every time. That’s brand loyalty at work! The customer’s loyalty shows when they leave a 5-star review, recommend the store to others, and choose to buy again—even when a competitor offers a tempting discount.
Many factors influence customer loyalty, and we’ll go over some of them later. But two of the most important factors are product quality and customer service. Brands that create durable, long-lasting products and go above and beyond to resolve issues tend to gain customers for life.
For example, these real customer comments all explain why people have chosen to be loyal to a particular brand:
- “Phenomenal customer service”
- “Extremely well-made … they don't use cheap materials for accessory components”
- “Lifetime warranty on everything”
- “I was honestly blown away by the level of customer service they offered”
- “Anytime anything has gone wrong, they have immediately fixed it”
- “They have gone above and beyond for me several times”
The above responses align with the results of a PwC survey that asked consumers which factors influence their likelihood to remain loyal to a brand. The top answer? Reliability.
What Is Brand Loyalty in Marketing?
Brand loyalty in marketing simply refers to a business owner’s awareness that certain marketing tactics can help increase customer loyalty. Whether you’re marketing to new or existing customers, you can tailor communications to help shoppers gain a lasting good impression of your store.
How To Measure Brand Loyalty
How successful has your business been in attracting and retaining loyal customers? To find out, you can send out net promoter score surveys, monitor your customer lifetime value, and collect feedback from buyers.
Net Promoter Score (NPS)
Net promoter score (NPS) measures brand loyalty by gauging the likelihood of your customers recommending your brand to others. It’s based on a simple question: “On a scale of 0 to 10, how likely are you to recommend our brand to a friend, family member, or colleague?”
The responses categorize customers into three groups: promoters (those who choose between 9 and 10), passives (7-8), and detractors (0-6). Your NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
A positive NPS is a sign of strong brand loyalty, suggesting that customers are satisfied and willing to advocate for your brand.
In 2024, the average NPS for ecommerce is 52.
Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is another important metric for measuring brand loyalty. It reflects the total revenue a customer is expected to generate over their entire relationship with your business, with a higher CLV showing that customers are staying loyal over time. To calculate, simply multiply the average order value by the average order frequency.
According to one report, the average CLV for DTC brands is $168.
Customer Feedback
Finally, customer feedback is a vital tool for measuring brand loyalty. While NPS and CLV provide quantitative data, analyzing qualitative customer feedback can give you deeper insights into how customers view your brand and whether they feel satisfied and valued.
By collecting feedback through surveys, reviews, or social media, you can identify trends and areas where your brand excels or needs improvement.
Strategies To Build Brand Loyalty
Whether you’re looking to expand an existing base of loyal customers or hoping to gain those first brand advocates, the following strategies will help you get there. Unsurprisingly, everything starts with your product.
Sell High-Quality Products
For 82% of people, product quality is an important factor in determining their brand loyalty. When customers are pleased with their purchases, they’re more likely to buy again and recommend your brand and less likely to return the product, complain, or leave negative reviews.
To ensure product quality, invest in reliable suppliers, conduct rigorous quality checks, and gather customer feedback to identify any areas for improvement. Focus on delivering not just good products, but exceptional ones that stand out in the market.
And of course, don’t forget to balance quality with price. For budget-conscious consumers, price is the number one reason they shop online versus going to the store in person.
Provide Excellent Customer Service
Customer service directly impacts how customers perceive your brand and whether they choose to return. To provide exceptional customer service, you’ll need to resolve issues quickly and effectively, anticipate customer needs, and exceed their expectations at every interaction. This will create positive experiences that customers remember and appreciate.
Personalize the Purchase Experience
Personalizing the purchase experience helps customers feel recognized and valued as individuals, showing that you don’t see them as just another transaction. Personalization can take many forms, including tailored product recommendations, personalized email campaigns, or special offers based on past purchase behavior. By leveraging customer data and insights, you can create a relevant and engaging shopping experience that resonates with each customer.
Start a Loyalty Program
Loyalty programs reward repeat customers and encourage them to continue choosing your brand over competitors. These programs can offer a variety of rewards, such as discounts, exclusive offers, or points that can be redeemed for future purchases.
The key to a successful loyalty program is to make it simple, valuable, and aligned with your brand. Make sure to design a program that’s easy for customers to understand and participate in.
When done correctly, a loyalty program can have benefits beyond loyalty. A well-structured program provides valuable data on customer preferences and behavior, which can be used to further improve the shopping experience.
Engage and Communicate With Customers
Communicating with customers builds brand loyalty by keeping your business top-of-mind. Regular, meaningful communication—whether through social media, email newsletters, or customer service interactions—helps build trust and makes customers feel valued. Remember, your focus should be on creating a two-way dialogue, not just broadcasting messages.
In addition, you can foster loyalty by showing that your brand engages with the social issues your target demographic cares about. The first step is understanding who your ideal buyer is and what they value. Values can be influenced by many factors, including generation. For example, Gen Zers tend to want companies to “take a stance on … racial justice, LGBTQ+ rights, gender inequality, and climate change,” while many Millennials “want companies to take a stance on … racial justice, income inequality, climate change, affordable healthcare, and LGBTQ+ rights.”
Improve the Delivery and Returns Experiences
When asked about the most important attributes when shopping online, 42% of consumers chose fast and reliable delivery as one of their top three answers. In another survey, 82% of respondents mentioned that free shipping was the most important factor. Clearly, the shipping and returns experience is important for customers—so brands should take it seriously too! By working with reliable carriers, designing an effective fulfillment process, and using the right technology, you can ensure that packages arrive safely and customers are satisfied.
The Benefits of Brand Loyalty
When consumers are loyal to a brand, the business sees increased revenue and reaches more potential buyers.
- Increased revenue. Loyal customers make repeat purchases, often spending more over time as they continue to trust and value your brand.
- Cost efficiency. Retaining existing customers is generally much cheaper than acquiring new ones. With loyal customers, you spend less on marketing and sales efforts while still generating steady revenue, leading to higher profit margins.
- Customer advocacy. Loyal customers become brand advocates, spreading positive word-of-mouth and referring others to your business, which can drive new customer acquisition at little to no cost.
The Role of Package Protection in Brand Loyalty
One simple way to increase brand loyalty is to add Norton Shopping Guarantee with Package Protection by EasyPost to your Shopify or WooCommerce store.
Norton Shopping Guarantee gives customers the option to add package protection to their purchase for a small percentage of the purchase price. If a customer’s order is lost, stolen, or damaged, the Norton Shopping Guarantee team provides a smooth, hassle-free claims experience to get them a full refund.
Request a demo to learn how you can enhance brand loyalty and customer satisfaction.
