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January 26, 2023

5 Key Barriers to Brand Loyalty

David Brashears

5 Barriers to Brand Loyalty article.

Brand loyalty is like any other really powerful desire, everyone wants it but very few have actually done the work to figure out how to get it. However, there are certain things that can make it harder for customers to fall head over heels in love with your brand. In this article, we will discuss the top five barriers to brand loyalty from a brand strategy perspective and how businesses can overcome them with a little bit of humor and some help from an experienced cult brand agency.

1: Lack of Trust

Trust is like the foundation of a house, without it, the whole thing falls apart. Without trust, customers are less likely to purchase products or services from a company, let alone develop a sense of loyalty. To build trust, businesses must be transparent and communicate honestly with customers. They should also make sure their products or services meet or exceed customers’ expectations.

In our own market study with diverse consumers across the US, we found, “68.54% of customers surveyed make purchases more often from brands they are loyal to, and 55.81% are willing to spend more on brands they trust.” (https://creativeenergy.agency/cult-brands/)

2: Lack of Personalization

According to an article by Josh Turner (Founder/CEO at Connect 365), “Using someone’s actual name in the subject line increases email open rates by 26%.” (https://www.linkedin.com/pulse/email-personalization-techniques-tools-stats-2021-guide-josh-turner/)

Customers want to feel like their needs and preferences are being considered, not like they’re just another number in a sea of customers. Personalization can help businesses create a sense of connection with their customers, which can lead to increased loyalty. One way to personalize the customer experience is to use data to create targeted marketing campaigns.

3: Lack of Engagement

Engaging with customers is essential for building a loyal customer base, it’s like a conversation on a first date. This can include creating a strong social media presence, responding to customer inquiries and complaints in a timely manner, and offering personalized promotions and discounts. A Sprout Social report on the subject showed, “brands that respond to social media messages see an 18% increase in customer retention.” (https://sproutsocial.com/insights/social-media-customer-service/)

4: Lack of Differentiation

With so many options available to customers, it can be difficult for businesses to stand out. To overcome this barrier, businesses need to identify what makes their products or services unique and communicate this to customers. According to a study by McKinsey, “brands that are able to create a differentiated value proposition are able to generate up to three times the revenue growth of their competitors.” (https://www.mckinsey.com/industries/retail/our-insights/personalizing-the-customer-experience-driving-differentiation-in-retail)

5: Lack of Consistency

Consistency is key when it comes to building brand loyalty. Customers want to know that they can rely on a business to deliver high-quality products or services consistently. Businesses should make sure that their products or services are of consistent quality, and that their branding and messaging is consistent across all channels.

A Demand Metric report said, “Consistently presented brands are 3.5 times more likely to enjoy excellent brand visibility than those with an inconsistent brand presentation.” (https://www.smallbizgenius.net/by-the-numbers/branding-statistics/#gref)

Building brand loyalty is not always easy, but by understanding and addressing the top five barriers to brand loyalty, businesses can take steps to overcome these challenges and create a loyal customer base. By building trust, personalizing the customer experience, engaging with customers, differentiating their products or services, and being consistent, businesses can create a strong, loyal following that will drive long-term success. Cultivating a solid brand loyalty strategy that effectively leverages human experience is like cultivating a garden.  Yeah, it’s work and yeah, it can be stressful at times.  However, it’s also the best way to make sure you have a great harvest in the future.  If you need an agency that’s not afraid to stand beside you and get its hands dirty, then give us a shout.  We’ve figured out some great paths that make this a lot more fun than it should be.

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