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Home » Customer Loyalty Vs Brand Loyalty: The differences and why it matters

Customer Loyalty Vs Brand Loyalty: The differences and why it matters

When it comes to maintaining a solid customer base, there are two things that you must consider – customer loyalty and brand loyalty. Though they both contribute towards retention and repurchasing, customer and brand loyalty serve entirely different purposes.

Thus, let’s take a look at the differences between customer and brand loyalty, and why they are important for all businesses.

What is customer loyalty?

Customer loyalty happens when a customer has a great experience with your business, which drives them to keep coming back for more. In this sense, it surrounds customer spending, customer experience and customer retention.

One way to increase customer loyalty is by rewarding customers for returning using a customer loyalty scheme. A customer loyalty scheme can include things such as collecting points on purchases, a loyalty rewards card, vouchers after spending over a certain amount, or even a cash discount for repeat customers.

What is brand loyalty?

On the other hand, brand loyalty is when a customer can relate to your brand on a personal level. Whether it is done consciously or unconsciously, once a relationship is established between brand and customer, they will keep returning to your brand as they know your quality meets their expectations.

In other words, brand loyalty has little to do with the monetary factors. Instead, it is about how customers perceive your brand and its values. If a customer believes you are the market leader in your industry, they will come back to you over your competitors regardless of prices.

Customers who have loyalty towards your brand are also more likely to try more of your products and services.

Why does loyalty matter?

Both customer loyalty and brand loyalty are essential for businesses who are looking to retain customers and improve repurchase rates. So how can you boost customer retention and repurchase rates using customer and brand loyalty?

1. Low prices and special offers

Increase customer loyalty by keeping costs low, and offering regular special offers. Customers will then recognise that you are the cheapest place to get the products you sell, preventing them from looking elsewhere.

2. Loyalty discounts

Reward loyalty by introducing a customer rewards program that gives loyal customers a discount. Even if your products are not the cheapest on the market, by being a member of your rewards program customers will feel that you have better value for money, as they can get a more expensive product at a discounted price.

3. Be vocal about your values

You can earn brand loyalty by communicating your brand’s message, ethos, and values. 71% of consumers prefer buying from companies that share the same values with them. Once they have shopped with you once, they are more likely to come back again and again as you relate to one another on a personal level.

4. Maintain a high level of quality

Brand loyalty can be maintained as long as your high-quality of products and services is consistent. As long as you are satisfying your customers, they will have no reason to shop around.

And there you have it – the differences between customer loyalty and brand loyalty, why it matters, and a few tips on how to improve overall loyalty in your business.

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