How to build brand loyalty

By Anders Björklund

How to build brand loyalty

According to the Pareto Principle, 80% of your companies revenue will come from 20% of your existing customers. So your focus should be to keep this group of customers very satisfied so that they keep coming back for more. Learn how you can build brand loyalty effectively. 

What is brand loyalty?

In a qualitative definition brand loyalty is customers who repeatedly make purchases from your company, build trust in you and your company and consistently choose you and your company over competitors. Brand loyalty always involves emotional attachment and overall positive affinity. You earn brand loyalty through great relationships with your existing customers. 

A quantitative definition of brand loyalty may vary depending on your company, offering, and audience expectations, needs and behaviours. And it's good to think through how many purchases it takes to build and measure brand loyalty so that you get the figures right.

Why is it important to build brand loyalty?

Brand loyalty is most crucial for all B2B-companies. Brand loyalty helps you nurture a profitable customer base so you can drive repeat purchases and up-sells, and build a community of promoters. When your customers become promoters, they'll likely mention you and your company, to leave recommendations, tell colleagues and business relations, and advocate on behalf of your brand - and they are credible for potential customers. 

What are strategies for building brand loyalty?

Building brand loyalty is the hard part, and even harder to cultivate. Very few companies have high brand loyalty - whatever they say or claim. I recommend you to prioritise brand loyalty and to be deliberate about how you reach out, respond and care for your customers.

Modern customers scour your products, solutions and services before they make a buying decision. Very few companies can rely on traditional methods to build brand loyalty if the customer is less informed. It is very hard to maintain brand loyalty due to that the business environment is competitive and that customers always look for companies that will offer them the best products, services and solutions. One of the good things with loyal customers is that they usually are very profitable. Repeat customers sometimes make bulky and often regular purchases. The main challenge is that a very small proportion of first-time businesses transforms into repeat clients. Therefore, all companies should invest in building brand loyalty among their customers and employees.

The customers shall get to a point where they feel subconsciously connected to your company. The best way to shine in the battle for brand loyalty is to fulfil the customer's expectations. And you must use the right approach or strategy. 

Brand loyalty.pptx

I have created a PowerPoint with some effective ways to build brand loyalty. I hope you find them useful and worth the effort.

How to build brand loyalty

Do you want to learn more about branding? In our branding guide, you'll find out everything you need to know about the what, why, when and how of branding.

Anders Björklund
Founder, CEO & Strategist since 2001. Anders provides thoughts and reflections about how to think about onlinification and digitalisation in B2B.
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