ariMarketing News
Monday, June 2, 2025
Want Traffic?
  • Home
  • Entrepreneurship
  • Marketing
    • Digital Marketing
    • Mobile Marketing
    • Content Marketing
    • B2B Marketing
    • B2C Marketing
    • Email Marketing
    • Video Marketing
  • Social Media
  • SEO
  • AI
  • Graphic Design
  • PR
  • Videos
  • More
    • Sales Conversion
    • Website Development
    • Traffic/Lead Generation
No Result
View All Result
  • Home
  • Entrepreneurship
  • Marketing
    • Digital Marketing
    • Mobile Marketing
    • Content Marketing
    • B2B Marketing
    • B2C Marketing
    • Email Marketing
    • Video Marketing
  • Social Media
  • SEO
  • AI
  • Graphic Design
  • PR
  • Videos
  • More
    • Sales Conversion
    • Website Development
    • Traffic/Lead Generation
No Result
View All Result
ariMarketing News
No Result
View All Result
  • Marketing
  • Social Media
  • SEO
  • Entrepreneurship
  • AI
  • Graphic Design
  • Public Relations
  • Sales Conversion
  • Website Development
  • Traffic/Lead Generation
  • Videos
Home Entrepreneurship

The Secret to Building Brand Devotion is Not a Loyalty Program

October 6, 2022
in Entrepreneurship
107 3
A A
0
21
SHARES
689
VIEWS
Share on FacebookShare on Twitter

Opinions expressed by Entrepreneur contributors are their own.

If you ask a lot of business leaders, they’ll tell you that there’s nothing more important than loyalty. A loyal customer returns to you again and again — because you’re delivering on a brand promise and giving people what they want.

Of course, this virtuous circle needs a little grease sometimes — which is why the loyalty program (providing a “reward” for loyal patronage) was invented. It’s a transactional concept that goes back to Ancient Egypt, where pharaohs rewarded conscripted workers and enslaved people with “tokens” for their work and temple time. In the age of Big Data, consumer rewards (free “stuff” or access) often come in exchange for personal data.

But consumers are increasingly unenthusiastic about this tradeoff. They’re rejecting the idea that brand loyalty means giving up control of their data. Digital native Gen Zs, in particular, demand transparency and honesty from brands above all else, even if they also expect personalization.

Just look at the splashy ads that Apple has been airing on TV — showing a young woman walking into the middle of an auction where her personal data (email entrails, drugstore purchases) is about to be sold to the highest bidder. She pulls out her iPhone and, with the click of a button, she flips the privacy setting to (poof!) make the auction disappear.

In 2022, control over data — and transparency over how it’s handled — is a concept that sells. And more than ever, customers want a voice in the brand relationship — and to know that their voice is being heard.

Related: How to Create Authentic Relationships and Build Customer Trust

Move beyond loyalty and build devotees

The Apple ad is rooted in a reality that the brand has recognized for years: The most important thing in the customer relationship is not loyalty but enthusiasm. If customers really love you — and not just tolerate you for the sake of a few points, credits or tokens — they will pay that extra $200 or $300, especially if they feel like they (and their data) are being treated with respect.

These consumers as described in a study by Forrester as “devotees”:

  1. Spend more money with their favored brands.
  2. Keep their business with these brands.
  3. Forgive them when they mess up.
  4. Pay a premium price for their products/services.
  5. Go out of their way to work with them.

This is different from a “loyal” customer in significant ways, described as someone who is staying with a brand for the benefits — until something better comes along. And in this era of customers burned by rising prices and service shortcomings — there’s less willingness to “pay a premium” for a product or to “forgive” brands when they screw up.

We’re starting to see this shakeout happen in the streaming world. According to a recent Wall Street Journal report, 19% of subscribers of premium services (including Netflix, Hulu, AppleTV+, HBO Max and Disney+) “canceled three or more subscriptions in the two years up to June (2022)… up from 6% in the two-year stretch ended in June 2020.” For all the data that streamers are collecting — and the many algorithm-informed shows they’re producing — they haven’t been successful at building a devoted customer base. According to the aforementioned study, 100% of “devotee” customers are willing to pay a premium price for the brands they love — but only 11% of non-devotee customers are willing to do the same.

Related: Creative Ways to Delight Your Customers and Make Them Loyal to Your Brand

Wrap your arms around your best customers

To achieve this level of devotion, you need to move beyond traditional concepts of loyalty and stop treating customers as mere data points. As Ana Andjelic wrote in Harvard Business Review in 2021, “Loyalty programs — that effectively bribe people into buying more of your products — are lazy. In the modern aspiration economy, people develop true brand affinity only when it gives them a sense of community.”

So how do you give consumers that sense of community? For luxury products, Andjelic explains, it might take the form of exclusive experiences such as an invitation to the Château de Saran — an estate that’s part of the Moët & Chandon powerhouse brand where you can’t pay to stay but have to be invited.

You can also build that sense of community in the virtual world — for far less money — by convening a select panel of brand enthusiasts, who are consulted on everything from new offerings to tailored brand services.

By leveraging mobile-based research platforms, for instance, brands can regularly “check in” with customers and survey their needs. They can make their best customers feel part of their vital marketing processes and glean insights that help craft new brand messages or deliver new products or services.

Whether it’s a brand ambassador program, an online insight community or an exclusive château in the French countryside, people want to be active participants with their favorite brands. They will eagerly reach out to provide feedback, both good and bad. So find ongoing ways to engage with them — and show them that their voice is being heard and is driving action at the company.

Brands still need data to serve customers effectively. But in this era of increasing government regulation of data usage — and growing consumer concern about privacy — brands need to be transparent about what they’re collecting and give consumers good reasons to let them into their private lives. The era of “creeping” consumers — and calling that loyalty — is over.

Read the full article here

Tags: Brand LoyaltyBrand ReputationBrandingConsumerCustomer LoyaltyCustomer ServiceMarketingTrust

Subscribe to our mailing list to receives daily updates!

We won't spam you

Previous Post

4 Tips to Perfect the Relationship Between Sales and Marketing

Next Post

How marketers can connect with Gen Z in emerging virtual worlds

Related Posts

Old Navy shows off activewear with Lindsay Lohan in ‘80s-inspired spot
Entrepreneurship

Old Navy shows off activewear with Lindsay Lohan in ‘80s-inspired spot

May 30, 2025
Sprite targets ads around scorching temps for global summer campaign
Entrepreneurship

Sprite targets ads around scorching temps for global summer campaign

May 29, 2025
Marketing to Gen Alpha: How brands can win over the next generation
Entrepreneurship

Marketing to Gen Alpha: How brands can win over the next generation

May 29, 2025
E.l.f. sets sail with viral TikToker Oliver Widger
Entrepreneurship

E.l.f. sets sail with viral TikToker Oliver Widger

May 28, 2025
YouTube spotlights how brands can own cultural moments at ad showcase
Entrepreneurship

YouTube spotlights how brands can own cultural moments at ad showcase

May 15, 2025
Knorr dupes fast food favorites with Martha Stewart in social-first push
Entrepreneurship

Knorr dupes fast food favorites with Martha Stewart in social-first push

May 14, 2025
Leave Comment

Subscribe to our mailing list to receive updates and special offers!

We will NOT span you!

Check your inbox or spam folder to confirm your subscription.

Latest Articles

Kinder Chocolate lets kids’ imaginations run wild in new campaign

Kinder Chocolate lets kids’ imaginations run wild in new campaign

May 30, 2025
Droga departs Accenture Song CEO post at fluid moment for creativity

Droga departs Accenture Song CEO post at fluid moment for creativity

May 28, 2025
Artificial Intelligence in Enterprise Service Management: What to Expect in 2025

Artificial Intelligence in Enterprise Service Management: What to Expect in 2025

May 27, 2025
In a world of tariffs and turmoil, marketing’s insight is a superpower

How tariffs are reshaping long-term strategies for brands and buyers

May 27, 2025
Coke pushes Gen Z to ditch digital noise and embrace summer fun

Coke pushes Gen Z to ditch digital noise and embrace summer fun

May 27, 2025

Latest Marketing and Entrepreneurship news and articles from the most trusted sources, follow us to get the latest news and tips directly to your inbox.


Learn more

Sections

  • Artificial Intelligence
  • B2B Marketing
  • B2C Marketing
  • Content Marketing
  • Digital Marketing
  • Email Marketing
  • Entrepreneurship
  • Graphic Design
  • Mobile Marketing
  • Public Relations
  • Sales Conversion
  • SEO
  • Social Media
  • Traffic/Lead Generation
  • Uncategorized
  • Video Marketing
  • Videos
  • Website Development

Newsletter

Subscribe to our mailing list to receive updates and special offers!

We will NOT span you!

Check your inbox or spam folder to confirm your subscription.

  • Privacy
  • Terms
  • Press Release
  • Advertise
  • Contact

© 2022 ariMarketing - All rights reserved.

No Result
View All Result
  • Home
  • Entrepreneurship
  • Marketing
    • Digital Marketing
    • Mobile Marketing
    • Content Marketing
    • B2B Marketing
    • B2C Marketing
    • Email Marketing
    • Video Marketing
  • Social Media
  • SEO
  • AI
  • Graphic Design
  • PR
  • Videos
  • More
    • Sales Conversion
    • Website Development
    • Traffic/Lead Generation

© 2022 ariMarketing - All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.