Repeat Buyers ≠ Loyal Customers
Most brands mistake repeat purchases for loyalty.
An average person makes 35,000 choices per day.
Due to this, most decisions are made without any second thought.
That leads to implicit loyalty for brands.
Implicit loyalty will show in numbers and in cohort analysis.
Their repeat purchases could be driven by convenience, pricing, or lack of alternatives rather than genuine loyalty or satisfaction with the brand.
However, these customers are susceptible to pricing, location, and competition.
They will not refer friends, go out of their way, post on social media, etc.
In short, they will not give you a COMPETITIVE ADVANTAGE.
Eventually, you want them to move to explicit loyalty.
True loyalty often involves a deeper emotional connection with the brand.
They not only purchase repeatedly but also advocate for the company, provide positive feedback, and show resistance to switching to competitors.
To build emotional loyalty, start by –
- Building communities around a topic
- Do mission or cause-based marketing
- Creating a unique brand voice and experience
Don’t mistake implicit loyalty for the loyalty you need to grow profitably.
It’s just people have not given it a second thought.