{"id":8157,"date":"2022-02-24T18:40:17","date_gmt":"2022-02-24T15:40:17","guid":{"rendered":"https:\/\/adoric.com\/best-shopify-apps\/?p=8157"},"modified":"2022-04-11T10:22:07","modified_gmt":"2022-04-11T07:22:07","slug":"boost-brand-loyalty","status":"publish","type":"post","link":"https:\/\/adoric.com\/best-shopify-apps\/boost-brand-loyalty\/","title":{"rendered":"10 Tips to Boost Brand Loyalty for Your Shopify Business"},"content":{"rendered":"

Why Boosting Brand Loyalty Is Important<\/h2>\n

You\u2019re probably getting some traffic on your Shopify store. But how do you keep them coming back? How do you make them so loyal to your brand that they begin to tell their friends and family members about you? This is where boosting brand loyalty for your Shopify store comes in.<\/p>\n

Repeat customers spend more on buying your products and cost you less to retain them. This is why it is important to plan ahead of time to retain your customers.<\/p>\n

Brand loyalty alone can be what makes the difference between you and the competition. Having loyal customers can help boost your word-of-mouth marketing, increase your user-generated content and customer retention. It even directly raises your bottom line by impacting your store revenue and profits.<\/p>\n

This guide will discuss all you need to know about brand loyalty, including the importance, factors that affect brand loyalty, practical strategies to improve customer loyalty, and customer loyalty tools that you can use for your Shopify store.<\/p>\n

Let\u2019s jump right in!<\/p>\n

What is Brand Loyalty?<\/h2>\n

Brand loyalty describes a positive relationship with your customers as a brand. It shows the willingness of your customers to choose your brand or your products over the competition consistently.<\/p>\n

With the fierce competition that you find in the eCommerce space today, the loyalty of your customers to your brand can set your Shopify business apart. If you have just formed your LLC<\/a> or commenced an online business, you should consider the strategies you can use to boost your brand loyalty.<\/p>\n

Brand loyalty also gives you valuable insight into your customers’ behaviour, which can help you restrategize your business to serve your customers better.<\/p>\n

Why is Brand Loyalty Important?<\/h2>\n

Brand loyalty is an essential aspect of any business, whether small or big. This is because just a fraction of your loyal customers can generate a large percentage of your future revenue. Here are some other reasons building brand loyalty for your Shopify store is important:<\/p>\n

1. Reduce Customer Acquisition Costs<\/h3>\n

Brand loyalty helps to increase your customer retention rate. It has been shown that retaining old customers is cheaper than acquiring new ones simply implies reduced customer acquisition costs. A publication<\/a> by Emmet Murphy and Mark Murphy indicates that even a slight 2% increase in your customer retention rate can lead to as much as a 10% reduction in your running costs.<\/p>\n

2. Increase Revenue and Profits<\/h3>\n

\"Brand<\/p>\n

Source<\/a><\/p>\n

It costs more to acquire new customers than to retain customers who have shown that they know you and love your brand. Brand loyalty reduces your customer acquisition costs and running costs; hence, it increases your revenue and your profits.<\/p>\n

Brand loyalty also increases your average order value (AOV). This is because your loyal customers are more likely to make larger and more frequent purchases as time goes on. This, in turn, boosts your customer lifetime value<\/a> (CLTV) as your loyal customers are likely to buy other new products you add to your store because they’ve come to trust your brand.<\/p>\n

3. Improve Brand Reputation and Advocacy<\/h3>\n

64%<\/a> of marketing executives believe that the most effective form of marketing is word-of-mouth marketing. Customers who are loyal to your brand love to buy from you, but beyond that, they are likely to tell their family and friends. By building brand loyalty, you create a larger fan base for your business.<\/p>\n

The more loyal customers are to your brand, the more likely they will recommend your business to their friends and families. This will directly drive up sales and improve your brand reputation.<\/p>\n

4. Gather Valuable Feedback for Evaluation<\/h3>\n

Customers who are loyal to your brand are interested in seeing it bloom. With increased brand loyalty, you gain access to valuable feedback and ideas from your customers. You can use this feedback and ideas to evaluate and improve your business strategy.<\/p>\n

You can also expand your business based on these ideas as you’ll have the assurance that your loyal customers have shown some level of interest in those new areas.<\/p>\n

Factors Affecting Brand Loyalty<\/h2>\n

Trust is the very basis on which brand loyalty is built. Customers will not become loyal to you if they cannot trust your brand. Certain factors are responsible for this, and by addressing these factors, you make it possible for your customers to become confident and trust your brand.<\/p>\n

Some of these factors include:<\/p>\n

1. Brand Values<\/h3>\n

Your brand values are arguably the most important influence on the loyalty of your customers. Customers are interested in the values you stand for as a brand, and they also consider the principles that your brand follows. People are generally drawn to customer-centric brands.<\/p>\n

2. Quality<\/h3>\n

Another popular factor that determines brand loyalty is quality. Nobody likes to buy products of poor quality.<\/p>\n

You want to make sure that your products are of high quality and meet your customers’ expectations.<\/p>\n

3. Customer Service<\/h3>\n

Everyone appreciates good customer service, and people are more likely to become return customers when a brand treats them right. Addressing the concerns of customers swiftly is a great place to start. You can proceed from there to improve their navigation experience as they shop on your Shopify store.<\/p>\n

4. Shopping Experience<\/h3>\n

Whether you notice it or not, people are very particular with their shopping experience. They want to enjoy a seamless shopping experience, and they want your checkout and shipping to be hassle-free as well.<\/p>\n

So, optimize these touchpoints<\/a> to earn your customers\u2019 loyalty.<\/p>\n

How to Measure Brand Loyalty<\/h2>\n

Measuring brand loyalty using certain metrics can help you monitor your brand loyalty better. These metrics will give you insights into why and how your customer loyalty increases and how to make it even better.<\/p>\n

Some of the metrics to pay attention to include:<\/p>\n

1. Net Promoter Score (NPS)<\/h3>\n

Your net promoter score helps you understand the chances of your customers referring your brand to other people. In other words, it lets you track your loyalty marketing. When measuring brand loyalty with NPS, ask your customers the following:<\/p>\n

On a scale of 0-10, how likely are you to recommend us to your friends, family or business associates?<\/p>\n

Customers who choose between 0 and 6 are called detractors, those who select 7 or 8 are passives, while those who choose 9 or 10 are your promoters.<\/p>\n

To get your NPS, simply subtract the total percentage of detractors from the total percentage of promoters, i.e.,<\/p>\n

Total percentage of promoters – Total percentage of detractors = Net promoter score.<\/b><\/p>\n

2. Customer Loyalty Index (CLI)<\/h3>\n

The customer loyalty index is regarded as the measure of customer loyalty over a specific period. It factors in other metrics like net promoter score, repeat purchases, and upselling. As opposed to NPS that measures just customer intention, CLI considers customers alongside their actual behaviour.<\/p>\n

To measure your CLI, ask your customers these questions:<\/p>\n