Developing brand loyalty can add significant long-term business value in several ways. The emotional affinity consumers feel toward certain brands can be so powerful, for example, that a 5% increase in customer loyalty has been shown to generate a 25% boost in profit.
And these customers can become a brand’s most vocal champions. Research shows that 86% of loyal consumers will recommend a brand to friends.
Finally, brand loyalty can minimize consumers’ price sensitivity and likelihood of comparison shopping. McKinsey estimates that 31% of loyal consumers will knowingly pay a higher price to stay with their preferred brand.