The Ultimate Brand Loyalty Guide: What Is It, Why Is It Important & How to Build It

Aws Alnabulsi
April 30, 2023
10 min to read
Brand Loyalty

The ultimate objective of any company seeking to gain a firm presence in the market is brand loyalty.

It speaks to the loyalty and trust that customers feel for your brand and your products. They buy from your store. They take on your upselling and cross selling offers. They recommend your shop or your products to others. Customers now have a wide range of options thanks to the growth of internet shopping, making brand loyalty even more precious than ever before.

That’s why ecommerce businesses need to differentiate themselves from the competition, boost client lifetime value, and generate more income by cultivating brand loyalty.

Coretava products offer a unique and innovative approach to building brand loyalty. From personalized product recommendations to seamless omnichannel experiences, Coretava's solutions are designed to enhance customer satisfaction and create a lasting bond between the customer and the brand.

Table of Contents

  • What Is Brand Loyalty?
  • Why Is Brand Loyalty Important?
  • How Do You Measure Brand Loyalty?
  • 5 Amazing Brand Loyalty Examples
  • How to Build Brand Loyalty in 2023: 6 Strategies
  • Building Brand Loyalty in 2023

What Is Brand Loyalty?

What Is Brand Loyalty?

The pinnacle of client devotion in every ecommerce store is brand loyalty. It describes the extent to which a consumer will repeatedly favor one brand above another offering similar products or services and suggest it to others within their network.

Although the brand loyalty definition and understanding may differ from person to person, it often involves a strong emotional bond and level of trust between the customer and the company that results in recurring business and brand endorsement.

Building a solid client base and promoting sustainable growth depend on brand loyalty. It aids companies in establishing themselves as trustworthy and dependable enterprises in the eyes of their clients, which in turn develops familiarity and loyalty.

There is a positive feedback loop where happy customers promote the business toothers and draw in new clients. Thus, brand loyalty helps bring referral traffic to your online store.

What’s the Difference Between Customer Loyalty and Brand Loyalty?

Customer Loyalty vs Brand Loyalty

Customer loyalty vs brand loyalty - these two concepts are sometimes used synonymously but do not mean the same thing.

Customer loyalty is a client's devotion to a specific company or brand and is frequently influenced by the quality of the goods or services, the price, the customer experience, or other elements.

On the other hand, brand loyalty is the customer's attachment to and emotional connection with a certain brand, independent of particular goods or services.

Both are essential for companies hoping to thrive in today’s market.

Customer loyalty is assessed by repeat purchases and the customer's readiness to suggest the company to their online and offline network. Measuring brand loyalty is about building a deeper emotional connection with customers that extends beyond transactional encounters.

Why Is Brand Loyalty Important?

Brand loyalty is critical for businesses looking to establish a strong foothold in the competitive market that we experience today.

Here are the 6 most important brand loyalty statistics that highlight the benefits of this ecommerce trend:

1. Boosts Sales

Brand Loyalty Benefits - Boost Sales

Outbound Engine suggests that acquiring a new customer can cost anywhere from five to 25 times more than retaining an existing one. Brand loyalty boosts sales by keeping existing customers coming back, resulting in increased revenue and profits for businesses.

2. Improves Customer Lifetime Value

Brand loyalty can significantly increase customer lifetime value (CLV). According to Inc, repeat customers spend 67% more on average than new customers, making them a valuable asset for any ecommerce business.

3. Builds Customer Advocacy

Loyal customers are more likely to recommend a brand to others. Nielsen reports that 88% of consumers trust recommendations from friends and family more than any other form of advertising. By fostering brand loyalty and growing brand ambassadors, businesses can tap into this powerful form of word-of-mouth marketing.

4. Reduces Marketing Costs

It is less expensive to keep existing consumers than to find new ones. Profits can rise by 25% to 95% when client retention rates are increased by 5%, as quoted by Business News Daily. Companies can reduce their ecommerce marketing expenses and deploy their resources more effectively.

5. Enhances Brand Reputation

Brand loyalty can enhance a business's reputation in the market. Loyal customers are more forgiving of occasional missteps and more likely to give a brand the benefit of the doubt. This can help businesses weather crises and maintain a positive image in the eyes of their customers.

6. Increases Customer Engagement

Loyal customers are more engaged with a brand, leading to more frequent interactions and deeper relationships. This creates opportunities for businesses to gather feedback, gather insights, and create personalized experiences for their customers.

How Do You Measure Brand Loyalty?

Measuring brand loyalty is essential for businesses looking to understand how well their brand resonates with customers.

Here are 10 different metrics that can be used to measure brand loyalty:

1. Customer Retention Rate

How to Measure Brand Loyalty - Customer Retention

This metric measures the percentage of customers who continue to use a brand's products or services over time. A high customer retention rate indicates strong brand loyalty.

2. Repeat Purchase Rate

This measure shows the percentage of customers who make more than one purchase from a brand. A high repeat purchase rate indicates that customers are satisfied with the brand and are likely to become loyal customers.

3. Net Promoter Score (NPS)

The NPS measures the likelihood of a customer recommending a brand to others. A high NPS score indicates that customers are loyal and are willing to advocate for the brand.

4. Customer Lifetime Value (CLV)

The CLV evaluates the total monetary value of a customer over their entire relationship with a brand. A high CLV indicates that customers are loyal and have a strong attachment to the brand.

5. Purchase Frequency

This metric measures how often customers purchase from a brand. High purchase frequency indicates strong brand loyalty and a willingness to make repeat purchases.

6. Social Media Engagement

Social media engagement measures how actively customers engage with a brand on social media platforms. High engagement indicates strong brand loyalty and a willingness to interact with the brand beyond transactional interactions.

7. Brand Awareness

Brand awareness indicates how well customers recognize and recall a brand. High brand awareness shows that customers are loyal and have a strong connection to the brand.

8. Brand Advocacy

Brand advocacy measures how willing customers are to promote a brand to others. High brand advocacy indicates strong brand loyalty and a willingness to act as brand ambassadors.

9. Customer Satisfaction

Customer satisfaction shows how happy customers are with a brand's products or services. High customer satisfaction indicates that customers are likely to become loyal customers, continue doing business with the brand over time, and recommend it to others.

10. Referral Rate

The referral rate measures how many new customers a brand receives through referrals from existing customers. High referral rates indicate strong brand loyalty and readiness to recommend the brand to others.

5 Amazing Brand Loyalty Examples

Customers return to a brand time and time again with brand loyalty.

Here are 5 of the best brand loyalty programs from various industries that might inspire you:

1. Apple

Apple geeks are famous for waiting in line outside stores on the day of a new release. The brand’s emphasis on design and innovation, as well as the brand’s focus on achieving a seamless user experience across all of its devices, plays a big role for their brand loyalty strategy.

2. Coca-Cola

Coca-Cola is another company that has attracted a sizable following of devoted consumers over time. The Coca-Cola Company continues to be the most recognizable soft drink brand in the world despite the rise of health-conscious consumers and the acceptance of low-sugar substitutes.

3. Nike

The Nike Just Do It slogan has become an iconic rallying cry for athletes and fitness enthusiasts around the world, further cementing the brand's position as a leader in the athletic apparel industry.

4. Sephora

Sephora has created a community of loyal customers through its innovative approach to the beauty retail industry. The company's loyalty program, which offers exclusive perks and discounts to members, has helped to build a dedicated fan base of beauty lovers who swear by Sephora's products.

5. Harley-Davidson

Harley owners refer to their motorcycles as Hogs and show them off in events and rallies that celebrate the brand's heritage and culture. The company's strong brand identity has helped it weather economic downturns and maintain a loyal customer base for decades.

These are just a few examples of companies that have successful brand loyalty strategies through a combination of quality products, innovative marketing, and a strong brand identity.

How to Build Brand Loyalty in 2023: 6 Strategies

How to Build Brand Loyalty

Solid brand loyalty is essential for any business wanting to succeed in today's competitive market.

Here are 5 things to do in building your brand loyalty tactics:

1. Develop a Consistent Brand Identity.

Consistency in messaging, tone, and visual identity across all platforms helps build familiarity and trust with customers, leading to better recognition and loyalty.

Messaging should clearly communicate brand values, mission, and unique selling proposition, while tone should remain consistent across all channels.

The visual identity, including the logo, color palette, typography, and other design elements, should also be uniform across all materials for providing omnichannel marketing.

Establishing a strong brand presence that customers recognize and trust can lead to better brand loyalty and long-term success for the ecommerce business.

2. Emphasize Customer Experience.

A positive experience for your customers can lead to increased satisfaction, loyalty, and even advocacy. Responding quickly to customer inquiries and complaints, offering personalized recommendations, and going above and beyond are certain strategies to ensure customer satisfaction.

By listening to your customers and providing excellent service, you can build trust and loyalty, creating a strong bond between your brand and your customers.

This emphasis on the customer experience can ultimately lead to increased customer retention and higher lifetime value, helping your business succeed in the long term.

3. Offer Loyalty Programs.

Ecommerce websites can keep their customers coming back by offering loyalty programs. Implementing a loyalty program, such as a points-based system or exclusive discounts, can be an effective way to build brand loyalty.

According to Zippia, 83% of consumers say brand loyalty marketing is effective. Loyalty programs make them more likely to continue doing business with a brand.

4. Post Engaging Content.

Launching blog entries, social media updates, or videos that discuss subjects relevant to your organization is something to think about.

To make customers feel more loyal to your brand, you can offer behind-the-scenes looks at your brand, share insights, and put forward advice and ideas.

It’s important to keep your content simple to read, visually appealing, and with clear, succinct messaging that represents your business.

5. Leverage Social Media to Build Relationships.

Another important strategy is to engage with your followers, respond to comments and messages, and use social media to showcase your brand's personality.

As reported by Exploding Topics, 61% of customers believe that businesses should be more considerate when predicting consumer demands by using personal information.

6. Make Use of the Best Brand Loyalty Tools.

In 2023, AI and big data analytics provide opportunities to boost just about any aspect of your ecommerce business, including your brand loyalty strategy. This can be done with the use of the right tools to streamline, optimize, and automate your efforts in this direction.

Core Loyalty to Build Brand Loyalty

That's where Coretava comes in. With our customizable marketing, personalization, omnichannel, and loyalty program solutions, our tools can help businesses build and boost brand loyalty, ultimately driving growth and success.

To learn more about how Coretava can help you grow brand loyalty and customer retention, schedule a free demo with our team of experts.

Building Brand Loyalty in 2023

Building brand loyalty is more important than ever in 2023, among the accelerated growth of ecommerce businesses and the unheard of competition between online stores.

By focusing on creating a consistent brand identity, providing a positive customer experience, offering loyalty programs, creating engaging content, and using social media to build relationships, businesses can effectively build lasting brand loyalty.

If you need some help in incentivizing customer behavior and building brand loyalty, make sure to check out Coretava. Our tools can help you improve customer experience and customer engagement to build both customer loyalty and brand loyalty.

To get started with boosting brand loyalty among your customers, sign up for Coretava now.


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Daniela Andreevska

Daniela has 6 years of experience in digital marketing for ecommerce businesses.

Aws Alnabulsi

Aws is the Co-Founder of Coretava, a complete retail ecommerce growth platform. He has 6+ years of experience in managing and growing ecommerce businesses.

Carlos Guerberoff

Head de Parcerias na Coretava. Especialista em desenvolver e fortalecer relacionamentos estratégicos. Orientado para resultados e apaixonado por construir conexões duradouras.

Henrique Letoldo

Head of Sales na Coretava. Com vasta experiência em liderança de equipes comerciais, busca constantemente impulsionar o crescimento e maximizar resultados. Apaixonado por inovação e estratégias de vendas eficazes.

Aws Alnabulsi

CEO e fundador da Coretava. Visionário e empreendedor apaixonado, lidera a equipe com visão estratégica e inovação, buscando transformar o varejo através de soluções tecnológicas.

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