Brand Loyalty Statistics of Online Buyers in India

What is Brand Loyalty?

Brand loyalty, in the most basic terms, means the willingness of a customer to keep buying from a certain brand. Customers become loyal to brands when their expectations from a certain product are met. If a customer is satisfied with products from your brand, it is likely that they will return to you, and over time, they might become your regular customer. Loyal customers can also help expand business by spreading positive words about your brand. A survey by KPMG revealed that 93% of Indian customers say they would recommend a brand to their friends and families if they were loyal to it.
What is Brand Loyalty?

Difficulties of Establishing Brand Loyalty in Online Buyers

The internet is flooded with options for online buyers, and each comes with several added offers like discounts, cashbacks and free delivery. According to an Accenture survey, almost 70% of Indian consumers do not differentiate between providers. This suggests that with increasing options, brand loyalty among consumers may be on the decline. Customers may want utilitarian value for their money and time, and hence may choose the best offer available.

Initially, this compelled online businesses to believe that sales and offers are a way to win brand loyalty. However, over a period of a few years brands have come to realize that this is not a sustainable model of building loyalty. After all, if one’s competitors launch better schemes, the brand could lose their customers instantly, as the brand’s offers are the only thing keeping them hooked. Moreover, the one-to-one interaction that in-store purchases offer is missing in online shopping. Therefore, it is safe to say that building brand loyalty online depends on the quality of goods you sell, the offers you provide and your customer service.
Difficulties of Establishing Brand Loyalty in Online Buyers

Is Brand Loyalty Earned or Sold?

Sometimes, brands reach such levels of success that the name of a certain brand becomes synonymous with an entire product category.

What we are looking at today is brands selling loyalty to its customers through measures such as reward points and memberships. Reward points may be allotted to customers on any purchase made, which can be used either to get a discount on the next purchase, or to earn a gift.

Memberships are commitments that customers make to brands, in return for certain benefits. The abovementioned KPMG survey also showed that 84% of the Indian respondents believe in loyalty memberships. This suggests that loyalty memberships can actually be a way to get more customers in the Indian online market. Memberships can be broadly classified into two categories:
  • Memberships that come with certain benefits like free deliveries, added discounts, access to certain products and services, gifts and a preference over non-members.
  • Membership advantages that involve solving customer issues, like removal of advertisements, or availability of cabs during surge hours.
Customers today are increasingly aware of issues, and they are often loyal to brands that display the same values as them. The 2017 Edelman Earned Brand Study shows that 50% of the global consumers, and 65% of Indian consumers said that they were belief-driven, and would choose a brand that stands for social and environmental issues among others

Impact of the COVID-19 Pandemic on Brand Loyalty

Impact of the COVID-19 Pandemic on Brand Loyalty
The COVID-19 pandemic has affected almost everything. The impact of this outbreak is so huge, that we are talking in terms of pre-COVID and post-COVID scheme of things. Like almost every other aspect, brand loyalty has also seen a shift during the pandemic. The factors affecting brand loyalty now are:

1. Accessibility

Since supply chains were disrupted all over the country due to COVID- 19, buyers were not left with many options. The local brands saw an upsurge of sales during the lockdown, and online marketplaces prioritized the sales and delivery of packaged foods, groceries, health and safety products, and household staples.

2. The Price Factor

The pandemic has resulted in a loss of more than 41 lakh jobs in India, and a cut in salary for many in the organized sector. Therefore, the value for money becomes more crucial than ever. People have been shifting to brands that are providing cheaper alternatives, and therefore price has been a driving factor for customer loyalty during the pandemic.

3. Transparency and Flexibility

Transportation, supply chains and shipping services faced major obstacles due to the restrictions imposed. Some brands are transparent to the consumer about shipping delays or unavailability. Some brands, however, decided to keep taking orders without making the delivery time or safety measures clear. This would inevitably send customers to competing brands.

Conclusion

Conclusion
To stand distinguished from other competitors in the market, it is essential for any business to build brand loyalty. The same product can be offered by countless brands on the internet, but brand loyalty differentiates a company from others. By harnessing data analytics to understand consumer behavior better, establishing a better communication with customers, standing for social issues and meeting the needs and expectations of its consumer base, companies can achieve brand loyalty.
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