Tips for Building Emotional Loyalty

THE SITUATION:

88% of loyalty program owners are planning to reward member behavior outside of the buying cycle in the next three to five years.

(Source: Antavo)

THE OPPORTUNITY:

At a high level, there are two types of brand loyalty – rational and emotional.

Rational loyalty is transaction-based, where customers make repeat purchases based on logical decision-making, cost savings, and practical value. On the other hand, emotional loyalty is more relationship oriented. Customers stay loyal due to the emotional attachment and the meaningful experiences they have with the brand.

Traditionally, brands incentivize loyalty through rational means – offering discounts, points, cashback, and free products. In fact, an Antavo study found that only 10% of businesses classified their loyalty programs as emotional. But it seems the tide is turning. As seen in The Situation, that same study reported 88% of loyalty program owners plan on rewarding behavior outside the buying cycle in the coming years.

This shift is primarily due to consumer evolution, where people have become more interested in intangible and experiential perks over tangible or cost-based rewards. Brian Walker, Chief Strategy Officer at Bloomreach, expanded on this topic in the study’s overview article :

“Instead of seeking items, [consumers are] searching for experiences. Loyalty programs need to reflect these preferences, and businesses can start by engaging with customers in ways they actually care about – beyond point systems… So, if you’re a sporting goods retailer, you’ll want to reward your customers for using the hiking boots, rather than just purchasing them. As we move away from that ‘quid pro quo’ model of loyalty programs, we have to connect these experiences to the customer journey and make every touchpoint feel intentional.”

Brand loyalty programs may not be your top priority. Or, depending on the business type/category, a loyalty program may not exist at all. But conceptually, the essence of customer loyalty is relevant to all of us.

So, these loyalty program trends are worthy of attention as they highlight an opportunity for brands to retain and expand their market share. Whether it’s a structured rewards program or growth strategies in general, understanding how to motivate repeat purchases and foster meaningful relationships are keys to long-term success. Based on the data, it looks like emotional drivers will play an increasingly important role.

THE CHALLENGE:

With rational loyalty programs and tactics, decision drivers can be assessed logically, and value can be quantified monetarily. So, in terms of building, implementing, and tracking ROI, things are relatively straightforward.

But with emotional loyalty, it’s a bit trickier. This area is intangible and more nuanced. It’s about developing strong, long-term, personal bonds with customers through unique, engaging, and memorable experiences. The ultimate goals are essentially the same as rational loyalty – driving return business and increasing sales. However, rather than purchase patterns and practical benefits, the keys are understanding and connecting with customers on a deeper level.

Many brands have steered away from emotional loyalty as a strategic initiative because of the inherent challenges. Impact reporting and sales attribution can become more difficult. Results can take longer to materialize than with other methods. So, I understand the reluctance. That said, consumer preferences and demands are trending in this direction. People are actively looking for nuanced, intangible, and emotional value. If these trends continue, then the more difficult road is likely the one leading to long-term loyalty and competitive differentiation.

THE SOLUTION:

It’s likely no surprise that personalization is a key factor in building emotional loyalty. Delivering relevant messages and offers will show customers you’re paying attention to their wants, needs, and preferences. However, that’s just one piece of the puzzle. Here are a few other tips and tactics for building emotional loyalty:

Foster Authentic Communication

Authentic communication is the cornerstone of building meaningful relationships with your customers. It's not just about what you say but how you say it. Be transparent in sharing your values, mission, and behind-the-scenes stories. Invite customers to be part of the brand rather than just a supporter of it. This helps reveal the human side of your brand, and humanizing your brand helps build connections on an emotional level.

Engage Beyond Transactions

Customers seek more than just products; they desire experiences and relationships. To engage with your customers beyond the point of sale, create content that educates, entertains, or inspires. Consider sending non-transactional messages on special occasions, recognizing milestone events, or simply thanking them for supporting your brand. Think outside the “quid pro quo” box to further engagement and strengthen connections.

Contribute to the Community

Customers appreciate brands that contribute to the greater good. Show your commitment to social responsibility by supporting causes that align with your brand values and resonate with your customers. Encourage them to join your efforts through donation matching, volunteer opportunities, or cause-related events. Regularly update your customers on the impact of your community efforts by sharing success stories and celebrating milestones together. I once saw a “pay points forward” loyalty program feature that allowed customers to allocate the value of their rewards to a charity or cause. This was a unique way to add an emotional element to a traditional loyalty program.

Seek Feedback and Take Action

Feedback is a goldmine for understanding your customers' needs and improving their experience. But it’s also a powerful relationship building tool, establishing two-way communication and bringing customers into the brand development process. In addition to gathering feedback, show that you care by responding promptly and genuinely, acknowledging the importance of their input and thanking them for their time. Then, be sure to act on the feedback you receive and share the changes and improvements you've made as a direct result of customer suggestions.

MY ADVICE:

As I mentioned in The Challenge, it can be difficult to track and measure the impact of emotional loyalty initiatives. This is where customer feedback and market research come into play. Regularly gathering insights on brand perception, advocacy, sentiment, and satisfaction will help quantify the effectiveness of your efforts. There’s an emphasis on regularly because ongoing feedback collection will provide benchmarking data to monitor trends and changes. A one-time feedback survey will only establish a baseline. It’s through continued feedback that impact can be tracked and measured.

HOW WE CAN HELP:

Expanding a bit on My Advice, it’s important to note that ongoing feedback initiatives require a strategic approach. With that, each new project can build upon the last while thinking forward to map out next steps.

This is why we started offering custom Research Strategy Workshops to guide brands through the strategy development process. From goal setting and project planning to insights analysis and implementation, we help build a holistic framework so your team can consistently produce truly actionable insights. Whether your focus is strengthening emotional loyalty or any other brand development objective, having a data-driven strategy in place is vital to long-term success.

To learn more about our workshops, give me a shout any time! Or click here for a high-level overview. ?

YOUR TURN:

I’d love to see your thoughts and comments about emotional loyalty. What steps are you taking to build connections and strengthen relationships with customers? Do you currently have a loyalty program in place, and which features have proven to be most impactful? Being a consumer yourself, are there any brands doing a good job of earning your emotional loyalty?

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, trend, or topic you’d like me to write about? Send me a message or share it in the comments. I’ll add it to my ideas list!