Julia Faria
Research lead covering advertising and marketing
Brand loyalty - statistics & facts
The scene repeats every time Apple launches a new product: hundreds of people queue in front of the tech firm stores all over the world. It does not matter how much the new device costs or if other companies offer similar products, Apple consumers want to show their dedication to the brand, as a great example of how brand loyalty works. In marketing, the concept refers to the preference for a brand, regardless of price or competitors' offers. Loyal consumers develop a positive sentiment for a brand, repeatedly making purchases and recommending it to family and friends. In times of economic pessimism, when consumers feel tempted to base their buying decisions on price, fomenting their trust and devotion is decisive.
How to build brand loyalty: investing in customer service and privacy policies
Multiple factors drive brand loyalty. More than just quality, customers look for other features before becoming loyal to a brand or company. According to a 2022 survey, nearly eight out of 10 global consumers deemed good customer service important to keep them loyal. Besides generating negative perceptions, ineffective customer service hinders sales. For instance, over 60 percent of U.S. consumers reported being unlikely to buy from a brand they could not contact. A brand's data privacy policy can also differentiate it from competitors, winning loyal customers. Nearly 90 percent of shoppers surveyed in the U.S. and the UK in 2022 stated that they would be more likely to spend money with a brand that commits to protecting their personal data online over one that does not.Aligned values lead to loyal customers
Companies must consider aspects such as business location and practices to enhance the positive emotions related to a product or service. For instance, during a 2021 survey conducted in the U.S. and Western European countries, over half of the respondents mentioned feeling emotionally connected to a business in their area, while one-third bonded with companies whose practices aligned with their values. Especially for brands willing to win younger loyal customers, aligning values with the consumer base is fundamental. In 2022, nearly 60 percent of Gen Z and Millennial U.S. consumers stated being more loyal to brands that speak up in the face of social issues.Loyalty programs: a way to maintain loyal consumers
According to a late 2022 survey, seven out of 10 U.S. shoppers considered loyalty programs important to keep them connected to their favorite brands. By providing discounts and rewards or early access to products, such programs make customers feel that their loyalty is valued and appreciated, which impacts shopping decisions. Nearly 80 percent of American consumers stated in a 2022 poll that loyalty programs influenced their likelihood to continue doing business with a brand or company, ahead of other factors, such as consistent customer experience and personalized communication. When joining a brand’s loyalty program, 80 percent of respondents mentioned that they purchased more frequently, while over half talked more often about the brand.Julia Faria
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Feb 29, 2024
Julia Faria
Research lead covering advertising and marketing
