What is brand loyalty?

Loyalty. It’s a word used a lot in regards to clients and customers, but what does it actually mean?

Customer loyalty can be understood, in its most basic form, as a more romantic way to discuss repeat customers. It’s not, however, quite as simple as that. A loyal customer base is often the foundation of a brand, and the people who allow it to grow and prosper. They are not only the people who are spending money with your brand, but will encourage others to spend money with you. They should be considered with the utmost importance at your brand.

In business speak, we often hear “loyalty” followed by “scheme”. They’re undoubtedly popular too- the Boots Advantage Card has been a permanent fixture in many people’s wallets and purses since 1998. Simpler loyalty schemes are commonplace: from tattoo artists to coffee shops.

While loyalty schemes are effective, they are not, in of themselves, a complete solution. Why would you frequent a terrible coffee shop, just to get another terrible coffee? At the heart of loyalty is trust in the company, and trust in the product. Customers must be committed to the service: and that can only occur if the service is good. Going back to the coffee shop analogy, this means, clearly, that the coffee is good. But it also extends beyond the product. It means that the branding is well-executed, there is a friendly environment and the staff are approachable. It is also about creating a brand that individuals can buy into: to create a brand community.

This may, of course, sound like millennial marketing nonsense. But brands have been creating communities for decades: from tech giants to skate brands. Brands with clear and distinct purposes and values attract passionate customers who relate to each other. While brand communities can occur spontaneously, driven by a genuine love for what the companies are doing, there are ways in which brands can facilitate the creation of a true community.

There are various techniques to do this, and all depend on the company and its sector. For brands with physical locations, being a part of and contributing to the immediate community in that location is immensely valuable. Considering a venue to be a community space- where like minded individuals can meet- is great for both your customers and, ultimately, your till.

Likewise, online brands can encourage their customers to engage with the brand. A strong social media presence is key to running a successful online brand. By encouraging customers to engage online, you can create an engaged consumer base.

Within Impellity, our latest project Henderson and Glass, a coffee and cocktail bar that opened in late October, has prioritised the customer experience. The brand and ethic values are at the very heart of the brand, and are obvious in all communications. The company is committed to sustainable practices: including sourcing reused materials for the decor, using locally-sourced produce and using coffee beans with a transparent supply chain. The brand has communicated these messages through their social channels- which already has a strong, local following- and through their ‘zine’ which outlines all the cafe-bar’s principles in a fun and engaging manner. 

Of course, the brand is not just reliant on creating a narrative: the product is also vital. The coffee has been taste-tested by a large focus group, to assure that it is of the highest quality and tastes brilliant. The coffee shop also has a bespoke design and warm, friendly staff: assuring that any customer feels welcome.

Customer loyalty is also rewarded. Impellity has created a custom-built coffee app: the first of its kind on the Isle of Man. By encouraging repeat customers through an incredible discount, the brand is creating a community of loyal customers.

Loyalty, then, first and foremost relies on excellent products. While loyalty schemes are incredibly effective, they rely first on creating a brand that customers feel a part of. 

To see how Impellity can help you create a brand community, contact us at https://impellity.com/contact We look forward to hearing from you.