Unpacking Brand Loyalty

Up until now, I have mostly been blogging about digital health, but lately, I have been thinking a lot about consumer brands.

Right now, in virtually every category of consumer products, there are multiple options and iterations of the same product with almost identical features. One of the only varying features is the brand. What makes people love certain brands with a fierce loyalty while being indifferent to others?

Branding is more important than it ever has been; a company’s brand is so much more than its product or its service — it represents the intangible edge that some companies have over one another. Having a strong brand is sometimes the difference between mediocre and exceptional sales, leads to word of mouth referrals, and overwhelmingly causes people to turn a blind eye to slight price increases. The scope of branding ranges from something as simple as a color scheme on a website or the packaging of a product to more thought-provoking concepts, such as the values of a brand, its social media strategy, or the connection with its target demographic.

While it is true that for basic and essential products, say for example, detergent or toothpaste, people definitely have some brand loyalty, this seems to be less about the brand and more about the individual. When a person finds a brand they like for essential products, they are more likely to go back to that product, not necessarily because they think the brand is satisfying some other desire for them, but rather because it’s generally available and easy to access. I have used the same brand of toothpaste, laundry detergent, and other basic essentials for years and haven’t felt the need to change them because I know their efficacy.

What initially prompts a person to pick a certain brand when it comes to basic or essential products? This initial choice can drive years of repeat purchases and purchases of other, perhaps complementary, products that the brand has to offer. I’m not fully sure about the answer to this, but it is true that big, well-known brands have built a reputation, and consumers may subconsciously be picking a brand based on its general reputation. Maybe there was some clever marketing involved or maybe the price point is lower, but either way, it’s not all random.

Once you look at the next “tier” of products that fall more into the realm of optional purchases rather than necessities, consumers’ relationships towards brands change. Consumers become less rational when it comes to optional purchases, and emotion is a factor in their decision-making process. Certain brands speak to consumers in ways that others do not.

And branding especially matters when it comes to products and services in highly competitive markets as a means of differentiation.

I believe that brand loyalty is driven by a combination of several different factors: consistency, trust, value alignment, connection, reinvention, and unique marketing.

1. Consistency / Quality: If a brand can actually offer what it says it can offer, and does this on a consistent basis, it is more likely to have staying power, as it will drive repeat purchases. The initial “hook” of a product that is backed by quality can even lead to consumers purchasing the product at a slightly increased price, since the consumer knows what to expect. This leads me to my next point…
2. Trust: Once a consumer can trust a brand, that is a major win. Trust leads to loyalty, and loyalty leads people to talk to their friends about the brand, vouch for the brand, and consider other products or services the brand has to offer because they are so comfortable with it.
3. Value alignment: Increasingly, people are taking note of what a brand stands for and whether it embodies their most important values. If a brand is able to identify the pain points of a population and take a strong view on it, people are more likely to admire and respect the brand, and in turn, want to associate themselves with the brand.
4. Connection: Does a consumer feel as though they can emotionally connect with the brand? If a brand can make a person feel like they are a part of something or gives them a sense of belonging or a sense that they are not alone, the brand has fulfilled a basic human need.
5. Reinvention: While sticking to your story and being hyper-focused can yield strong results, sometimes switching it up is a good way to attract a broader demographic. Sometimes a new tagline, refreshed packaging, or even a revamped website can reel in different types of customers. The trick here is for brands to draw in new customers while staying true to its underlying purpose and values, so that old customers don’t stray.
6. Unique marketing: Marketing has changed its medium many times, from newspaper, to television, and now to social media. However, I do find it interesting how some of the most basic marketing techniques seem to catch my eye. For example, ads on the subway have become increasingly common and I think it’s a great platform for companies to showcase their products and services.

The scope of branding is constantly evolving and expanding, through different social media channels, influencers, and a shifting landscape for consumer products. It will be interesting to see what tactics consumer brands turn to in order to differentiate themselves from the rest of the crowd going forward, especially in this hyper-competitive environment.