Brand loyalty is critical for your company’s success; it means having repeat customers that view you in a positive way. Without brand loyalty, you are forced to continuously find new customers by targeting popular gimmicks, having flash sales, running expensive marketing campaigns, etc.
It’s more efficient to retain customers than find new ones, so let’s look at how you can measure your brand loyalty and see if your efforts have the right effect.
Related: What Makes a Brand Powerful?
Measuring Brand Loyalty: 5 Key Metrics
1. Customer Satisfaction
Satisfied customers tend to be loyal to their favorite brands and repeatedly make purchases. Your job, and the challenging part, is to understand what motivates them to make those repeat purchases. You can better understand if your products, services, and brand as a whole are meeting their expectations by asking questions and analyzing their answers. Ask your customers questions like:
- How has your overall experience with us been?
- Would you recommend our products and/or services to friends and family?
- How would you rate us compared to similar companies?
- How do our products compare in quality to those similar companies?
- How well does our customer service team answer your questions or help solve your problems?
Understanding why (or why not) your customers stay loyal to your brand can help you make the changes needed to keep them from going to your competitors.
2. Brand Trust
Every brand has to earn and retain its customers’ trust to ensure brand loyalty; this is especially true for a company that handles sensitive information, like online retailers, financial institutions, and healthcare providers. Trust is a powerful commodity; you want your customers to have trust in your brand, services, and products. To assess how much trust customers have for your brand, ask them questions like:
- How much trust do you have for our brand? (Questions like this work the best if you give them a grading scale to work with, like on a scale of 1-10 or 1-5.)
- Do you trust our brand over similar companies? Why or why not?
- How did we earn your trust?
- What can we do to keep your trust?
- How can we increase your confidence in our brand?
The answers to these questions will allow you to identify what is (and is not) working with your brand marketing and gives you a list of actionable items on ways to increase your brand trust.
3. Brand Awareness
Brand awareness is used to describe and measure the amount of reach and familiarity that your brand has. If your brand isn’t easily recognizable, you can take steps to become more memorable and impactful. To get more insight into your brand awareness, ask questions to your customers like:
- How did you find out about our brand?
- On a scale of very to not, how familiar are you with the brand?
- Would you know our brand by looking at the logo?
Brand awareness can be tricky, but doing things like redesigning your logo, increasing marketing campaigns, or updating the copy on your website can help further your reach and build awareness and loyalty.
4. Brand Esteem
Brand esteem is how much respect for and attraction to your brand a customer has. Unlike brand awareness, which only shows if people recognize it or not, brand esteem measures how favorably your company is seen by the public. After determining if a customer is familiar with your brand, you can ask them questions like these to determine brand esteem:
- How much do you know about our brand?
- How positively do you perceive our brand? (Gradings scales are also good for questions like these.)
- Do you prefer our brand over the competitors?
Brand awareness is almost always a good thing, but by measuring your brand’s esteem, you can ensure that you are getting recognized for positive things rather than negative ones.
5. Brand Quality and Value
Gauging the way your customers view the quality of your brand is essential; if they don’t believe that your products or services fulfill their expectations, the other metrics become less important. If your company becomes known as a low-quality brand, it can be difficult to break that perception. To measure your brand quality, ask questions like:
- Do you consider our brand as low-quality, high-quality, or somewhere in between?
- How would you rate our brand’s quality against similar companies?
- If a cheaper alternative became available, would you switch brands?
- If another physical store was closer to your location, would you switch brands?
You typically want to measure your brand value comparatively to your brand’s quality; if you’re seen as having low-quality products or services and have higher than average prices, you’ll lose business. Luckily, this is something you can remedy. To assess your brand’s value, ask questions like:
- How would you rate our brand/service/products on a scale of 1-5?
- Compared to similar companies, do you believe that our brand/service/product has less, more, or equal value?
Calculating the Repurchase Ratio
Here’s a bonus way to measure your brand loyalty; look at your repurchase ratio. It’s not difficult to calculate, and it can give you additional insights into your customers.
For subscription models: you can find your repurchase ratio by taking the number of customers who renew their subscription and divide that by the number of ones who canceled.
For regular transactions: calculate your repurchase ratio by finding the difference between customers that made an additional transaction after their first purchase.
High ratios and low ratios mean that your customers are or are not loyal to your brand, respectively. For industries without much competition, the ratio may be distorted and won’t be as accurate.
Build Brand Loyalty With 1338Tryon
Finding out why your customers are loyal to your brand is just as important as seeing why they are not loyal. Using surveys and asking some of the questions listed above can help you gain critical insights on improving your overall brand loyalty and help you retain customers to continue growing and scaling.
Let 1338Tryon help you build brand loyalty through marketing asset programs, global sourcing initiatives, recognition programs, and branded merchandise.
Could your brand loyalty be better? Reach out to us today, and we’ll help you create high-quality, impactful promotional programs to grow your brand!