Loyalty. What’s emotion got to do with it?
That emotional connection to a brand is extremely important to customer loyalty. It’s often been thought to be a key driver of loyalty. It goes beyond the functional benefits of a product or service and taps into customers’ feelings, values, and identity.
True loyalty stems from more than just transactional convenience or pricing considerations. It really is about emotional connections, those intangible bonds that keep customers coming back even when alternatives exist.
There’s a big difference between a customer who buys from you again (a repeat customer) and one who actively chooses your brand over all others because of an emotional connection (a loyal customer).
Importance of Emotions to Loyalty
Customers who feel that emotional connection to a brand are more likely to exhibit:
- Stronger Commitment: They are more likely to remain loyal even when faced with competitive offers or minor service issues.
- Gallup found that about 70% of decisions, including brand preference, are based on emotional factors and only 30% are based on rational factors.
- Increased Advocacy: They are more likely to recommend the brand to others, acting as brand advocates, or even stronger, evangelists, and amplifying word-of-mouth marketing.
- According to the Digital Transformation Institute, 70% of customers with high emotional engagement spend up 2x or more on brands they are loyal to. In addition, 80% of these customers promote the brand to family and friends, and 62% advocate on social media.
- Higher Lifetime Value: They often spend more over time, buy more across your product lines, and are less price-sensitive, contributing to higher customer lifetime value.
- A study by the Harvard Business Review found that emotionally connected customers are 52% more valuable than those who are simply satisfied. These customers buy more frequently, are less price-sensitive, and are more likely to recommend the brand.
- A study by Motista, showed that customers that are emotionally connected to brands have a 306% higher lifetime value (5.1 years) versus. satisfied customers (3.4 years).
- Resilience Against Competitors: That strong emotional connection makes it harder for competitors to lure customers away, providing a competitive edge.
- Brand Association and Preference: These customers actively prefer your brand. They can’t live without the brand and accept no substitutes. They provide feedback, good and bad, to ensure the brand succeeds.
- These customers have their favorite brand top of mind. Capgemini research finds that “86% of consumers with high emotional engagement say they always think of the brands they are loyal to when they need something, and 82% always buy from the brand when they need something.”
- Enhanced Customer Experience: Emotional connections lead to more positive interactions and experiences, building trust over time and reinforcing the cycle of loyalty and satisfaction. Not every experience needs to be flawless, but a series of positive moments strengthens the connection.
- Motista also found that customers that are emotionally connected to brands rate them higher than satisfied customers.
Emotional loyalty goes beyond rational considerations. It’s about trust, shared values, and personalized experiences. When companies tap into these emotional motivators, they unlock a new source of competitive advantage and growth.
Fostering Emotional Connections
It’s important to keep those emotional connections strong. So, how can brands foster those connections? Let’s look at just a few things you can do.
Understand and Reflect Customer Values
Do the work to understand your customers and let them know you heard what they told you, i.e., do something with it and let them know what you did. Take the time to get to know your customers at a deeper level, including their values and what’s important to them. Align your brand values with those of your customers. Show commitment to social, environmental, or ethical causes that resonate with your audience. Clearly communicate your brand’s mission, vision, purpose, and values through all channels and interactions.
- Apple has mastered emotional loyalty by building a brand that resonates deeply with its customers, often creating a sense of belonging and identity. Apple positions itself as a brand of innovation, simplicity, and premium quality. And customers feel connected to the idea of being part of an exclusive group of forward-thinking, creative individuals.
Personalize Interactions
Use the data you gather as you do your understanding work, i.e., customer feedback plus the breadcrumbs of data they leave behind as they interact and transact with your brand, to personalize interactions, offers, and recommendations. Show customers that you understand and value their individual preferences. Use predictive and prescriptive analytics to aid in this process.
- Starbucks excels at personalization, from custom drink orders to the Starbucks Rewards app, which allows customers to earn rewards, receive personalized offers, and feel appreciated as individuals. This adds a personal touch and makes customers feel valued.
Create Memorable Experiences
First do the work to understand customer expectations. Then go beyond with unexpected gestures like thank you notes, small gifts, or special offers that make the experience memorable. It doesn’t have to be anything major – just something that stands out, differentiates, and fosters the connection. Invest in creating seamless, enjoyable, and memorable experiences at every touchpoint.
- Disney is top of mind and probably one of the best examples of a brand that has built emotional loyalty by consistently delivering magical experiences and fostering deep emotional connections with customers of all ages.
Tell a Compelling Brand Story
Use storytelling to convey your brand’s history, mission, and purpose. Stories create an emotional connection by making the brand relatable and human. Be genuine in your storytelling, as authenticity fosters trust and emotional engagement.
- Through its “Just Do It” slogan and powerful storytelling, Nike connects with customers on an emotional level, motivating them to overcome challenges and push their limits. This taps into personal aspirations and creates a deeper emotional connection.
Engage and Interact with Customers
Actively engage with customers on social media platforms. Respond to comments, share user-generated content, and participate in conversations. Create communities, e.g., online forums, social media groups, Slack channels, or in-person events, around your brand where customers can interact with each other and the brand.
- According to Capgemini, “brands that engage customers meaningfully in ways that illicit customer emotion have the potential to increase basket size, purchase frequency, and gain significant profit. The research finds that emotional engagement with consumers could drive a 5% uplift in annual revenue.”
Show Empathy and Care
Train customer service representatives to show empathy and understanding. Address customer concerns with care and attention. Anticipate customer needs and reach out proactively to offer assistance or address potential issues.
Reward Loyalty
Develop loyalty programs that reward not just purchases but also engagement and advocacy. Offer exclusive benefits and experiences to loyal customers to make them feel understood, cared for, valued, and special.
In Closing
Emotional connections are vital for cultivating deep, lasting customer loyalty. By understanding and reflecting customer values, personalizing interactions, creating memorable experiences, and consistently showing empathy and care, brands can foster strong emotional bonds with their customers. These connections lead to higher levels of satisfaction, loyalty, and advocacy, which are crucial for long-term business success.
We all live at the mercy of our emotions. Our emotions influence and shape our desires, thoughts, and behaviors – and above all, our destiny. ~ Dr. T.P. Chia
Related: Revolutionize Customer Service: Journey Orchestration in Contact Centers