It’s harder than ever to form a true connection that lasts with customers. In the past, familiarity, reasonable prices, and a few positive online reviews were enough to keep your customer base focused on your luxury brand. Today, the endless options of e-commerce and global shipping availability lets shoppers explore different luxury goods and jewelry retailers.
According to Emarsys, an omnichannel customer engagement platform, consumers reported a high of 79% brand loyalty in 2022, which dropped14% in 2023 and an additional 13% loss in 2024.
So what can you do in the face of all these challenges to foster a true sense of customer engagement and loyalty that lasts?
We asked Oscar Jeppson, Customer Success Manager at Clientbook, what his experience has been when talking with luxury retailers:
“Luxury customers have high expectations. And to meet those expectations, you need to be providing a customized, personalized experience while also adding extra value to really stand out.”
While the sobering stats may make it seem like building true customer loyalty is a thing of the past, this isn't true. It only means that brands have to focus their efforts more specifically these days in order to get the type of ongoing sales and commitment that leads to success beyond the next sale.
Top reasons for the decline in brand loyal customers
Many of the reasons for dropping levels of brand loyalty may come across as positive at first glance. However, each of these factors make it much more difficult to maintain or increase your customer retention rate. Customer acquisition cost increases, and the benefits may not outweigh the expenditure.
Reason #1: Customers are more empowered and informed than ever before
With all the automation tools, online reviews, web browser plug-ins, and shopping directories that use advanced AI analysis and recommendation systems, casual shoppers can find exactly what they want with a few screen taps or button pushes online. Even those who shop in brick-and-mortar stores will supplement their in-store shopping with apps and Internet-based research.
Loyalty suffers because it is simply so easy to find other options—and if you’re focusing on price alone, there will always be a lower price online that you won’t want to compete with
Reason #2: Poor customer experiences lead to quick changes for the average shopper
Despite the ease of e-commerce or social media platform shopping, a most valuable customer still wants personalized experiences from the brands they do business with. This refers not just to in-store experiences, but the customers’ experience via phone, web chat, and email if they reach out to you.
Inconsistency, inadequate customer service, poor quality communication, poorly configured messaging automation, and ineffectual sales teams all lead to a disappointing experience. If a shopper feels unappreciated and cannot get their questions and concerns addressed quickly, they will move on.
Reason #3: Social influence and poor marketing strategies drive customers away
Different customer segments require different things from the shopping experience, the products, and the overall interaction with the brands they choose. Things like trends and changing customer expectations in the realm of sustainability or premium prices make loyalty suffer if the company doesn't keep up. Failure to get this across to the right consumer groups not only fails to attract the attention you need but can also work against you.
So how can brands improve customer loyalty despite these challenges?
While it’s true that customer loyalty has gone down across the board in the past few years, that doesn't mean it's impossible to attract and keep your target audience. You might have to work harder to stand out from the vast array of competition out there. The following tips can help you do that, drive repeat sales, increase word-of-mouth advertising, and foster the type of brand loyalty that you need to succeed far into the future.
Tip #1 - Personalize the customer experience
Collect information from every single potential and existing customer and throughout every single sales interaction. Use a powerful customer relationship management platform like Clientbook to analyze it and get smart recommendations for improvements down the road. All this data can help you satisfy individual preferences and needs with personalized product recommendations, communication styles, and more. The more a person feels like you are catering to them specifically, the more they will feel connected to the brand.
Tip #2 - Foster open and mutually beneficial communication
Part of the personalization process involves establishing open lines of communication that help build strong relationships between the company and the people who make it all possible.
Actively seek feedback through surveys, social media interactions, and customer service channels. Ask for recommendations or suggestions for future offers, information, and improvements. Make it possible for them to share user-created content such as photos or videos of them interacting with the products they buy. Also, give regular updates about new lines, company news, and initiatives that resonate with their values.
Tip #3 - Make customer service a cornerstone of your brand identity
Some communication focuses on marketing. A lot of it focuses on customer service, however, and this is one way that your business can differentiate itself from competitors. Ensure that your support teams are well-trained, responsive, and empathetic to questions and concerns.
Give consumers multiple ways to get in contact with you including both online and in-person options. Besides reactive service in a timely manner, also practice proactive outreach and friendly follow-ups after each sale to foster an even deeper sense of connection.
Tip #4 - Provide value beyond your product offerings
True brand loyalty might come down to the other things your company stands for. Consumers buy things from those who share their values, especially when it comes to social responsibility and environmental sustainability. Give your target audience information about how you support these and similar initiatives. Demonstrate commitment to causes that resonate with them. Provide value to the world and not just a shopper looking for a great deal.
Tip #5 - Implement a loyalty reward program that works
Offers like "Buy three items and get the fourth one free" can work for simple products, but the type of consumers who want exclusive items that satisfy all their style and emotional needs want more. Create loyalty programs that incentivize repeat purchases by offering things that your target audience values. It might be a free item or a great discount. Consider gamifying the process with redeemable points. Make loyalty worth something, and shoppers are more likely to stick around.
How Clientbook can help build loyalty to your brand
In today’s competitive retail landscape, fostering true brand loyalty may seem like an uphill battle, but with the right tools and strategies, it’s entirely achievable. That’s where Clientbook comes in. Clientbook’s digital sales assistant software helps brands build meaningful connections through personalized experiences, efficient communication, and proactive customer service.
With Clientbook, you can go beyond just selling products—you're building a brand that customers trust and return to, even in a world where choices are endless. Embrace Clientbook’s suite of features to meet modern challenges and elevate your brand loyalty to new heights. Book a demo to see what it can do for your customer loyalty today.
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