Why is brand loyalty important for ecommerce stores?

Loyal customers come back for more, actively engage with the brand on social media, and even spread the word to bring in more customers. While it may seem like a dream scenario for most ecommerce founders, it’s possible to build such strong relationships with customers.

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…and it’s called brand loyalty.

In this blog, we’ll dive deep into brand loyalty: how to measure it, effective strategies for generating it, and real-life examples of successful DTC stores that turn one-time buyers into regular customers.

What is brand loyalty?

Brand loyalty is when customers consistently choose to buy from the same brand over others. The customer and brand have usually built a long-lasting relationship. It's like having a favorite go-to online store that you always trust and prefer. This loyalty isn't just about one purchase; it's about building a long-lasting relationship.

Consumer behavior plays a big part in brand loyalty. It's about why people keep coming back to the same brand again and again. Maybe they love the products, the service, or the overall experience. Whatever the reason, this loyalty extends beyond individual transactions.

4 Proven strategies to generate brand loyalty

Although the strategies we're about to outline can significantly enhance customer loyalty, it's important to first address some fundamental factors that might be holding you back:

Inconsistent product quality.
Poor customer service experiences.
Unmet customer expectations are common obstacles.

Start with basic, smart strategies that your team can implement today to generate strong brand loyalty among your customers:

Loyalty programs

Every desired behavior should be rewarded. That's why ecommerce brands benefit greatly from establishing loyalty programs where customers can earn points and exchange them for discounts, freebies, and more.

Here's how to set up your loyalty program:

Set up the Points Program with the Rivo app to structure your loyalty program around repeat purchases.

The Points Program is all about earning and redeeming points in your store. Customers can earn points by placing orders, writing product reviews, following you on Instagram, etc.

Once they've collected enough points, they can cash in those points for coupons to use on future orders in your store.

The Points Program you set up for your customers encourages repeat purchases and boosts engagement and brand awareness across all your channels.

And most importantly, this sustained engagement translates into increased Customer Lifetime Value (CLTV), as loyal customers come back to your store and redeem points for future purchases.

With Rivo you can monitor customer engagement across all platforms and automatically reward customers. For example, you can offer meaningful rewards such as coupons:

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Customers can redeem their points for various rewards. You can offer as many rewards as you like, and they come in six distinct types:

Online Store

A coupon for their next purchase.
Free shipping.
Free product.

POS (In-store)

A discount on their next purchase.

Loyal Program in action

Loyalty programs can be set up quickly with Rivo, as shown by Teaspressa Tea wholesaler. In just 24 hours, Rivo helped them create a unified landing page integrated into their website, branded as "LoyalTEA."

LoyalTEA allows customers to earn rewards and discounts from the moment they sign up.

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2) Personalized recommendations

Your store may offer a variety of high-quality products, but decision-fatigue can hold your customers back.

That's where personalized experiences come in. Point them to the exact products that they’d be interested in. Here’s an example from Paula’s Choice.

Here's how Warby Parker, a retailer of prescription glasses, does it: They have a quiz where customers input their face width, color, and shape preferences.

Based on this information, Warby Parker offers personalized glasses recommendations from their store.

💡Tip: Ask your customers to leave their email to help grow your email list and keep them up to date with new products and offers.

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3) Exceptional customer service

According to PwC's survey of 15,000 consumers, one-third of customers are willing to part ways with a beloved brand after a single (!) negative interaction.

Recognizing how crucial excellent customer service and positive word-of-mouth are, every brand should always strive to improve its service.

Take, for example, Chewy, the pet food and supplies online shop that went viral after one customer’s tweet:

Tweet Embed: https://x.com/alcesanna/status/1536930380082728961?lang=en

Chewy customers didn't just repost this tweet; they began sharing their own experiences with Chewy's customer support.

Here’s how they went above and beyond:

Sent flowers to an owner whose pet passed away.
Sent birthday cards to their customers’ pets.

Exceptional customer support can make or break your brand. It could be the difference between a customer coming back for more, or never buying from you again (and telling all their friends too!).

Your customer support team should have response time targets for each channel that will also be communicated to customers.
Keep product information, pricing, and shipping policies transparent.
Follow-up after the sale, with things like tracking links, installation guides, and frequently asked questions.
Ask for feedback. And ask your happy customers to leave a public review directly on your website.

4) Community engagement

When customers feel like they belong to a community around your brand, they're more likely to stick with you. This can be challenging since you need to pinpoint which channel your customers are most active (Facebook, Instagram, Slack, etc.). And you should also ask (and respect!) their communication preferences.

Here’s the caveat: If you want to build a community, you have to be loud.

Here are things you can do to build the community:

Give your members access to new drops before the public has access to it.

Consider integrating user-generated content on your socials to boost social proof, much like the jewelry brand Pura Vida Bracelets does. They encourage customers to share their experiences using the hashtag #puravidabracelets and often feature these user-generated posts on their Instagram:

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Host contests or giveaways for community members, offering free products or exclusive discounts as prizes.

A contest doesn’t need to be complicated. Here’s how ModCloth approached it in a fun way:

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Stuck between two flavors or want feedback on a new product? Collect customer feedback. They’ll feel a part of something big.

Example of brand loyalty

Brand loyalty is not only achievable but also quantifiable.

Take, for instance, Rareform.

Through a loyalty program designed to cater to their target audience, Rareform achieved remarkable results: a 26.9% increase in customer repurchase rate within the first 30 days of launching the program.

Rareforms's customers can earn points by placing orders, following the brand on Instagram and TikTok, and posting product reviews.

They can even earn and offer discounts/credits to everyone they refer who purchases using their unique link.

This not only encourages returning customers to make additional purchases and get you more customers but also creates memorable experiences for buyers.

While Rareform's sustainable products stand out on their own, the extra effort put into building brand loyalty pays off, evident in the high repurchase rate.

How brands measure loyalty

Ecommerce brands can gauge customer loyalty through the following methods:

Conducting customer satisfaction surveys.
Tracking customer retention rates.
Analyzing purchase frequency.

Rivo's comprehensive analytics dashboard tracks essential metrics such as total sales from loyalty programs, usage of discount codes, and average order value.

The dashboard also provides the following insights:

Percentage of sales from your loyalty programs
Customer lifetime value
Revenue from returning customers