What is Brand Loyalty, and How Does it Work?

What is Brand Loyalty, and How Do You Build It?

57% of customers tend to be loyal to brands because of customer service. Brand loyalty is often associated with prices and services. The better your prices and services are, the more you will be able to attract an audience. 

Now, many brands are turning to catering to the needs of their customers. They are focusing on making their customers delighted. Thus they bring pleasing experiences for them. This is how they are fostering brand loyalty.

As a result, it will eventually bring growth to their business. In this article, we will discuss What is brand loyalty is with examples and everything you must know about it. 

What is Brand Loyalty? 

What is Brand Loyalty? 

If a customer continues buying products from a particular brand, it fosters brand loyalty. This is the case when competitors have the same offerings. This helps to build a positive impression of the brand. In the case of brand loyalty, the customers will also engage with the brand. They will always have a positive feeling toward the brand. 

The concept of brand loyalty rests on the perception of customers about the brand. They will analyze the values and actions for a better impact. With the help of brand loyalty,  customer retention will increase. 

On being established, it will become easier to foster brand loyalty. However, it is advisable to maintain the service level and product quality. Brands consider maintaining brand loyalty to be fairly simpler than maintaining customer loyalty. 

How to Build Brand Loyalty? 

With business growth, most businesses consider offering products at competitive rates. They compete with their competitors in order to establish their presence. As a result, the marketing departments deploy different measures to boost brand loyalty. 

Some of the major steps on how to build brand loyalty are as follows:

  • Customer Service: Exceptional customer service is the key to building brand loyalty. It is crucial to make customers feel valued. This can be done by offering them top-notch personalized services.
  • Loyalty Program: Introducing loyalty programs can foster positive impressions among customers. Loyalty programs can include exclusive discounts, cashbacks, or even rewards.
  • Online Community: The online community brands build through engagement can have a significant impact. It is advisable to use different tools for promoting online engagement, which helps build a personal connection. 

Why is Brand Loyalty Important?

Brand loyalty builds a strong customer base which is one of the best ways to stay ahead of competitors. When brands attain a competitive edge in the market, they make their mark. Companies with strong brand loyalty often observe repeated purchases from customers. This is often irrespective of the prices and services they have to offer. 

Brand loyalty can be significantly fostered with strong marketing tactics. If brand loyalty is strong, the profitability of businesses will eventually increase. This is mostly because the customers keep using the services and products of the specific company. 

Due to brand loyalty’s longer lifespan, it is enduring. It helps to develop a connection between the brand and customers. Your customers will need less than a second to form an opinion about the brand. They will look at your website and form their own opinion. Therefore, it is important that you focus on small things to create a strong impact. 

How to Identify Brand Loyalty?

How to Identify Brand Loyalty?

It is important to identify brand loyalty because it will help understand the customer base. Furthermore, it will also help brands understand how effective their marketing strategies are. 

Some of the key considerations to take into account for identifying brand loyalty are as follows:

a.) Repetitive Purchases

Brands that have loyal customers will receive repeated purchases from them. It is crucial to monitor the history of customer purchases and their frequency. This is important in terms of high-value and long-term products. This will help you understand the strategies behind why customers are choosing your brand over competitors.

b.) Positive Word of Mouth

Positive Word of Mouth

Loyal customers are your brand ambassadors. They are the brand advocates who will have something positive to say about your offerings to their friends and families. It is advisable to be active on social media and keep a check on customer mentions, reviews, and referrals.

You know that you’re on the right track when your existing customers are rooting for you online. It is advisable to run referral campaigns to get more customers..

c.) Customer Retention and Churn Rates

Customer retention is extremely crucial for brand growth. If you want to identify who your loyal customers are, you must check the retention rates. Furthermore, you must also check the churn rates to know which customers moved on to your competitors and why.

d.) Engagement and Interaction

Engagement and Interaction

Engagement and interaction will always be frequent with your loyal customers. Apart from making purchases, loyal customers will continue to engage with the brands. It is important to identify the channels through which your customers regularly interact with you. These interactions will include

  1. Social media interaction
  2. Providing regular feedback
  3. Newsletter subscription
  4. Loyalty program participation

7 Strategies to Build Brand Loyalty

Compared to traditional marketing methods, brand loyalty can help to improve overall sales engagement and generate more revenue. It is important to note that loyal customers are profitable customers who will make frequent and repeated purchases. 

Here are some of the main strategies for building brand loyalty:

1. Customer EngagementCustomer Engagement

Engaging with customers helps foster a sense of belonging and community. You can use social media channels or email newsletters for customer engagement. By using this, you can always keep your customers informed about your business. Moreover, frequently engaging with customers helps create positive and happy customers. 

For example, you can find big brands like Starbucks, often connecting with their customers on Twitter. This makes the customers feel valued. They will come back to the brand even if the price increases. Thus, it is one of the most prominent brand loyalty examples.

2. Eye-catching Logo Design

Color says a lot about a brand’s personality. It adds a visual expression to the brand, evoking emotions in the customers. In order to foster brand loyalty, it is extremely important to follow a proper color palette. Maintaining consistency in the color palette will also help in promoting the brand the right way. 

3. Influencer Marketing

Influencer marketing has become extremely important for businesses in today’s time. With the rise of the creator economy, influencer marketing is also on the rise.

These influencers have a wider audience on social media. If they have positive things to say about the brand, they’ll help you build a loyal community. Around 40% of consumers between the ages of 18 to 34 will trust your brand if there is an influencer involved. 

Daniel Wellington often collaborates with influencers on Instagram for brand promotion. They introduced the #DWPickoftheDay contest. It was a challenge for influencers to post creative content. If it were good, it would be featured on the official account of DW. 

4. Quality Content

Posting quality content will always catch the eye of customers. It will also help the brands get traction on social media channels. However, along with posting quality content, it is advisable to be consistent. 

For example, Govee increased its brand awareness by posting high-quality content. They provided detailed product descriptions and illustrations. This helped them showcase their products in a better way. 

5. Offer Personalization

Offer Personalization

Personalization always works like a charm. Brands must be aware that there is a thin line between personalization and spamming. When you personalize, you are providing something that is relevant to the audience. One of the best ways to personalize the offerings is to address them by their names. Making the message clear and quick can help boost loyalty. 

Myntra, a leading eCommerce store, often personalizes their emails to customers. They address the customers by their names, which immediately draws a connection. The customer would stop and read the email, which would help increase click-through rates. 

6. Focus on Value

Value means different things to different people. While some consider the value to be affordable pricing, for others, it would mean investing money properly. It is important to understand what value your customers will receive when you want to build brand loyalty. 

You must consistently add value at every stage and provide the same to your customers. Customer support can be great for adding value. You must conduct an offline survey to understand what’s important to your audience. 

7. Make Your Customers Come Back

Even after having a positive interaction with the brand, some users don’t come back to it. Well, it is extremely important to make the customers come back. People do billions of searches on Google every day. You must consider standing out amidst the competition. 

Providing offers, incentives, and loyalty and referral programs can help businesses. It can be a great way to make customers come back. If you offer more rewards, more customers will come back. Thus, it will help expand your business. 


A significant part of brand loyalty deals ensures the return of customers to the website. When you build a loyal customer base, they will stick around. Thus, they will become the strongest advocates for your brand. Therefore, it is crucial to understand the importance of brand loyalty.

Only then can you implement it accordingly. However, never forget the importance of human interaction as well for better growth as well. When building brand loyalty, you should consider investing in a personal aspect. Make sure to win over your customers by winking their trust and delivering what is promised. 


Shivani is a content writer at InviteReferrals. She writes SEO articles, blogs, and guest posts for businesses to improve website ranking on SERP. She follows a balanced approach for the quality of content and its marketing. She loves to do creativity, although she had an English major in her graduation.