Digital Marketing, Tech & Development News

How To Turn The Science of Loyalty Into A Marketing Strategy

Written by Opium Works | Nov 14, 2024

Customer loyalty is becoming more important than ever before. With attention spans at an all-time low and competition soaring from all directions, retaining customers—and gaining their loyalty—has become a science that marketers and brands must master to ensure long-term success. Brands are constantly seeking the secret formula for cultivating customer loyalty, and while many view loyalty as elusive, it is grounded in robust principles. By leveraging these, marketing teams can craft marketing strategies that not only attract customers but also keep them engaged for the long haul.

At OW Digital, with Mailchimp as a long-term partner, we jumped at the opportunity to expand on one of Intuit Mailchimp’s most popular reports. Here, we delve into the science of loyalty and explore actionable tactics that can take your brand from zero to hero with your customers.

Understanding The Science of Loyalty

Loyalty is a fundamental driver of brand success. Loyal customers are golden tickets—they spend more, shield you from competitors, and enthusiastically spread word of mouth marketing about your brand. In a world overflowing with choices, cultivating loyalty has never been more crucial. However, customer loyalty isn’t one-size-fits-all. It can range from repeat purchases of the same product to superfans proudly wearing your logo. While not every brand will see this level of devotion, every brand can harness the psychological roots of loyalty by understanding how personal identity and social influences shape preferences.

It’s easy for brands to fall into the trap of focusing solely on transactional relationships and generic rewards programs. However, an effective customer loyalty strategy goes deeper. It recognizes that loyalty is intertwined with how a brand engages with the behavioural drivers of consumer preference. Loyalty reflects primal instincts that once guided survival and social bonds. Today, these ancient instincts still influence consumer choices, driven by nostalgia, identity, and psychological triggers.

Loyalty emerges not from rational decisions but from emotional responses managed by the limbic brain, the centre of primal urges and instincts. By exploring the intersection of instinct and rationality, brands can unlock the secrets of loyalty, creating strategies that resonate deeply and turn casual buyers into emotionally connected advocates. These strategies ensure your brand stands out in a crowded marketplace, driving results for your bottom line.

12 Actionable Tactics For Building Loyalty With Customers 

According to Intuit Mailchimp’s report, there are 12 actionable tactics that brands and marketers can utilise to cultivate customer loyalty. 

1. Smart Exposure

Keep your brand top-of-mind: Ensure your brand remains prominent by strategically placing brand codes and symbols where customers frequently encounter them. Notably, 46% of repeat buyers claim they are well-acquainted with the brands they choose, a figure that soars to 60% among devoted fans who feel they have an in-depth understanding of the brand.

2. Familiar Foundations

Engage in tried-and-tested spaces: Enhance brand loyalty by appearing in familiar, trusted environments. Approximately 49% of repeat customers are influenced by recommendations from friends or family when making purchasing decisions, a number that rises to 72% among younger consumers aged 18-24.

3. Choice Validation

Reinforce customer decisions: Encourage customers to feel confident in their purchase decisions by reinforcing the validity of their choice. While only 52% of passive customers and 51% of habitual buyers hold a highly favourable view of their preferred brand, this approval increases to 84% among ardent brand enthusiasts.

4. New Routines

Turn your brand into a habit: Integrate your brand into customers’ routines to drive repeat purchases. Among those who shop daily or weekly, 35% regard their favourite brand as their sole option, compared to just 22% of those who shop less frequently, highlighting the influence of regular purchase habits on brand loyalty.

5. Smooth Selling

Simplify the purchase experience: Ensure a seamless shopping experience by removing obstacles that might disrupt the customer journey. A staggering 97% of repeat buyers appreciate that their preferred brand makes purchasing quick and hassle-free.

6. Easy Decisions

Combat decision fatigue: Create frictionless shopping experiences to counteract decision fatigue. About 47% of email subscribers explore new products through brand emails, with 39% making a purchase as a result of these communications, indicating that streamlined decision-making processes are effective.

7. Gift Giving

Leverage organic word-to-mouth: Promote natural word-of-mouth marketing through gift giving. Currently, only 37% of customers recommend their preferred brand to others or give it as a gift. This figure increases among younger consumers, with 43% recommending their favourite brand and 30% gifting it, presenting an opportunity for brands to expand their reach.

8. Insider Status

Seek and respond to feedback: Make customers feel valued by actively seeking and addressing their feedback. Email remains the most popular communication channel, with 57% of shoppers preferring to stay in touch with brands this way. Brands that fail to offer robust customer service across various channels risk losing up to 25% of their customers.

9. Meaningful Rewards

Personalised experience and incentives: Enhance customer satisfaction by tailoring reward programs to align with customer lifestyles. While 45% of repeat buyers desire discounts, personalised experiences can also drive loyalty. In fact, 87% of customers feel good when their favourite brand makes them feel appreciated.

10. Game On

Add fun and achievement: Introduce gamification into your reward programs to create a sense of accomplishment and enjoyment. Although 29% of repeat customers express interest in receiving loyalty rewards, only 16% are currently enrolled in such programs, highlighting a significant opportunity for engagement.

11. Shared Interests

Foster emotional resonance: Connect with customers by aligning your brand with cultural or ethical values. Approximately 26% of consumers consider switching brands due to environmental or ethical concerns, with this sentiment rising to 34% among younger shoppers aged 18-24, underscoring the importance of shared values.

12. Sense of Ownership 

Engage in co-creation: Encourage customer participation to cultivate a sense of ownership and collaboration. Over 29% of email subscribers are willing to engage with brands through surveys or feedback, indicating a strong interest in contributing to brand development.

In a world with endless choices, understanding and leveraging the science of loyalty is essential. Loyalty isn’t just about transactions—it’s about forging meaningful connections that resonate on both personal and primal levels. By exploring the psychological and evolutionary roots of loyalty, and integrating these insights into your marketing strategy, you can transform casual buyers into lifelong advocates, driving both short- and long-term success.