Forty-one percent of Americans are more likely to buy from brands that they love when shopping for gifts during the holiday season, according to Yotpo’s annual brand loyalty survey. And, the majority of consumers consider themselves more brand loyal now than they were last year. When building a dedicated following—especially leading into and during the holiday rush—retailers should take a multifaceted approach. Ahead, a few key points to consider.
Consumers have a lot of spending love to share. When it comes to brand loyalty, most American shoppers have a robust line-up of favorites. In fact, 61 percent of respondents to Yotpo’s survey said they’re loyal to up to five brands, while 26 percent consider themselves a dedicated fan of between 6 to 10 different retailers.
But they’re also not quick to commit. Building brand loyalty takes time. To truly consider themselves loyalists, 36 percent of shoppers say they have to buy from a retailer five or more times. Thirty-three percent say they must shop from the same business three times. But once they take the leap, they’re truly dedicated—38 percent of Americans will still buy from their favorite brands, even if other shops boast lower prices.
The elements that drive brand loyalty are varied. What inspires brand loyalty most of all? According to 77 percent of survey answers, it’s the product. And while product might be the main motivator, it’s not the only one. Price is important in inspiring customers to return (63 percent), as well as customer service (26 percent) and the kickbacks that come along with a loyalty program (22 percent).
Speaking of loyalty programs, they have to be really good. And, experiential reward programs—like birthday perks, early product or sales access, and event invitations—always win the day. In May of this year, fashion retailer H&M upgraded its United States loyalty program to include in-store styling from blowout chain Drybar, special access to limited collections and up to 25 percent off on customers’ birthdays.
People love to support brands that are environmentally responsible. Eco-conscious consumers are always looking for fresh ways to decrease their environmental footprint and that’s especially true when it comes to purchasing decisions. Millennials and Gen Z’ers in particular prefer to buy from brands that are doing their part to promote sustainability. And, in the U.S., the sustainability market is expected to reach $150 million by 2021, with nearly half of Americans saying they plan to change their consumption habits.
Retailers can capitalize on this trend and build sustainability into their business model by leveraging a secondary market for their used, returned or excess merchandise. Products get a fresh life on B Stock’s data-driven online marketplace, where our auction-style platform creates competition among business buyers from around the world, helping our customers garner the best possible price for their inventory while also keeping the excess merchandise out of landfills. Retailers improve their bottom line and do their part to help the environment—which we know builds valuable brand loyalty.