Brand loyalty is the holy grail for businesses. It means customers keep coming back, evangelizing your products, and providing a steady revenue stream. But building true loyalty is tough in today’s world of infinite choices and fleeting attention spans.

As an angel investor who has worked with dozens of startups, I’ve seen firsthand what it takes to cultivate rabidly loyal fans. It requires much more than a good product – it’s about forging deep emotional connections.

In this guide, I’ll share 15 proven strategies for increasing brand loyalty that I’ve witnessed companies use to great success. From creative loyalty programs to content that cultivates the community, you’ll learn actionable tactics to turn customers into diehard advocates.

The 3 Key Ingredients of Brand Loyalty

Before we dive into the tactics, it’s helpful to understand the core components of brand loyalty:

1. Functional value – Your product/service delivers what is promised in a superior way.
2. Emotional connection – Customers feel a positive emotional bond with your brand personality and values.
3. Inertial value – There are high switching costs (money, effort, risk) for customers to leave.

The most loyally beloved brands excel at all three elements. Apple’s products are beautifully designed and easy to use (functional value). But Apple also cultivates an aspirational brand persona that many customers identify with (emotional connection). And their operating systems make it inconvenient to switch to other devices (inertial value).

With that foundation, let’s explore 15 foolproof ways you can increase loyalty for your brand:

1. Offer a Truly Remarkable Product/Service

This one is table stakes. If your core offering doesn’t deliver outstanding quality and value, none of the other tactics here will matter much. Loyal customers don’t stick around for mediocre experiences.

That said, simply having a good product is not enough on its own to inspire fierce loyalty. My investing experience has shown that products which redefine value propositions or solve radically new problems tend to create the most zealous followings.

For example, Tesla didn’t just make a cool new car – their electric vehicles represented an ambitious moonshot around sustainable energy. Likewise, Spanx developed an innovative underwear solution that empowered women in a way no other brand had before.

2. Create an Awesome Onboarding Experience

You only get one chance to make a first impression. All too often, companies invest heavily in marketing to acquire new customers but then promptly drop the ball with a lousy onboarding process.

The first few interactions when someone signs up or makes a purchase set the tone for the entire relationship. Disappointing beginnings make it easy for customers to churn out just as quickly as they came in.

Do everything you can to “wow” new customers right away. Some best practices:

• Take time to provide a warm, human welcome (personalized video can work wonders)
• Give helpful “first mile” guidance on getting started and realizing value
• Surprise and delight with small bonuses or gifts (e.g. free merch or premium access)
• Set proper expectations around what to expect next in the experience

3. Build a Passionate Community

Human beings are fundamentally wired to crave belonging within communities or tribes. Companies that facilitate these social connections tend to earn much stickier loyalty.

Creating a community doesn’t necessarily require resources like official forums, events, or membership programs (though those can help). Successful brands like Peloton and Glossier simply infuse a sense of togetherness through clever branding and social media.

The key is giving customers a platform to engage with the brand and each other around shared interests, lifestyles, or values. When done well, it transforms one-off transactional relationships into immersive social experiences that people want to be a part of.

4. Develop a Cult-Like Brand Personality

Why do people feel such irrational devotion to certain brands like Harley-Davidson or Lululemon? Because those companies have managed to imbue their offerings with strong symbolic meaning that people want to be associated with.

When customers internalize brand ethos and purpose as part of their own identity expression, you achieve a powerful emotional bond. Their purchasing decisions become as much about self-actualization as obtaining a functional benefit.

Crafting a captivating brand world with its own mythology, rituals, and “way of life” ideology is what separates the loyally-loved from the perpetually replaceable. It creates an aspirational mystique that people line up to join.

5. Implement a Well-Designed Loyalty Program

While not a silver bullet in itself, a good loyalty program is one of the most effective tools for incentivizing desired customer behaviors and purchasing habits. In fact, Yotpo data shows loyalty programs can increase customer lifetime revenue by over 30%.

The best loyalty programs combine hard benefits (points/cash rewards) with softer, experiential perks to forge both rational and emotional attachments. For example, Sephora’s program offers access to exclusive product launches, makeovers, custom beauty consultations, and higher earning tiers.

6. Deliver Ridiculous Customer Service

In the customer’s mind, the purchase isn’t over when they hand over money – the brand experience is ongoing. And there’s no surer way to dismantle loyalty than through lousy support.

The bar for “good” service is constantly rising. What was considered exceptional a few years ago (e.g. responsive phone agents) is now just table stakes. To truly “wow” customers today, you need to strive for the extra mile with proactive, personalized care that addresses needs before they even arise.

Look at brands like USAA insurance that are renowned for their extreme service ethos. Or Zappos, whose return policy and rep training are legendary. Small gestures like handwritten notes or overnighted replacement items leave customers feeling valued rather than expendable.

7. Constantly Gather Customer Feedback

The best brands have a pulse on what their customers love, don’t love, and wish they could have. But insightful feedback doesn’t just materialize – you have to work for it proactively.

Gathering voice-of-customer data requires multiple listening channels like satisfaction surveys, online reviews, social monitoring, and direct customer interviews. NPS (Net Promoter Score) surveys are particularly helpful for identifying growth opportunities as well as superfans who can provide deeper qualitative feedback.

The hardest part is actually implementing changes based on what you hear. Being responsive and transparent about how customer input shapes your product roadmap strengthens perceptions of care and investment in their success.

8. Share Your Brand Story and Vision

People don’t just buy what you sell; they buy why you sell it. Crafting and sharing your brand’s origin story and bigger “why” mission is crucial for inspiring emotional investment.

Companies like Toms Shoes and Warby Parker masterfully communicate their philanthropic worldviews of using business to create positive social impact. Customers feel like they’re part of something purposeful beyond merely acquiring eyewear.

Even for non-missioned brands, conveying an authentic vision for how you strive to innovate and make people’s lives better fosters affinity. It reinforces that you’re a trustworthy partner committed to the same goals as your customers.

9. Focus on Customer Successes Over Features

Your customers don’t actually want your products – they want the successful outcomes those products enable. Yet so much marketing dwells superficially on product specifications instead of the transformative results.

Rather than wax poetic about a new smartwatch’s technical bells and whistles, showcase stories of people achieving fitness breakthroughs. Instead of touting a CRM’s latest features, highlight real businesses that landed more sales.

The most loyally loved brands put the spotlight squarely on their customer heroes by celebrating diverse use cases across content and advertising. It reinforces how they empathize with core needs while inspiring others.

10. Involve Customers in Product Development

Loyalty means much more than paying lip service to “the customer is always right.” True customer obsession means co-creating solutions with the very people who will be using them.

Leading brands like Lego, Starbucks, and GoPro have formalized programs where customers can submit ideas, vote on concepts, and even get hands-on with prototyping. This open innovation pipeline demonstrates humility, builds goodwill through transparency, and results in better products shaped by real-world needs.

Even if you don’t have robust crowdsourcing channels, regularly conducting research like product clinics, diary studies, and beta testing with a sample of passionate customers yields gold. I’ve seen lagging startups turn their fortunes by truly listening to their biggest fans.

11. Embrace Transparency and Authenticity

In the era of “fake news” and rampant distrust of corporations, authenticity is a brand’s most compelling competitive advantage. Today’s consumers, especially younger generations, crave and reward honesty.

Being transparent about everything from product sourcing to corporate policies cultivates accountability and brand affinity. Outdoor brands like Patagonia openly critique their own environmental impacts. Employee review sites let companies like Stitch Fix showcase their workplace cultures.

Loyal brands also aren’t afraid to admit mistakes, show vulnerability, and poke fun at themselves from time to time. Lean into the imperfect humanity that customers can relate to on a personal level.

12. Provide Exclusive Access and VIP Perks

People inherently want to be part of the “inner circle” – it signals status and belonging. That’s why offering exclusive experiences or VIP tiers within a loyalty program is so magnetic.

For example, Amazon Prime delivers special shipping along with members-only entertainment and shopping benefits. Rent the Runway’s highest tier includes personal stylists and first dibs on new inventory. Tarte Cosmetics’ top “VIDEO” members get unlimited free shipping and exclusive product releases.

The value of the exclusives themselves may be marginal. But the feeling of being in the know and treated as a VIP engenders priceless brand affinity that keeps members longing for more.

13. Give Back to Causes Customers Care About

Increasingly, consumers want to support brands that reflect their own ethics and values around social/environmental responsibility. Loyalty is as much about self-expression as collecting rewards.

Donating proceeds to relevant non-profits and advocacy is the obvious avenue, as with Toms Shoes’ giving model or Warby Parker’s distribution of glasses to the underprivileged. But product integrations like Using reusable/recycled materials also demonstrate sustainability commitment.

Some brands like Tentree take it even further by putting progressive causes like tree planting at the core of their business model. Showing up authentically around issues customers are passionate about is a powerful loyalty catnip.

14. Personalize Experiences at Every Touchpoint

No one wants to feel like a nameless, faceless consumer – personalization is the antidote. And advances in data and technology have raised the bar on what “personal” means.

It’s no longer enough to use mail merge for basic name tokens. Companies like Netflix, Spotify, and Amazon are masters at using individual preferences and behaviors to dynamically tailor suggested content and offers. Sephora’s app provides customized product recommendations and makeup filters.

Omnichannel personalization from this level of individual insights, when done respectfully, demonstrates thoughtfulness that turns casual buyers into advocates. Even small gestures like handwritten notes make customers feel special.

15. Make It Effortless to Be Loyal

Sometimes we overcomplicate brand loyalty when the reality is people will simply stick with the path of least resistance. If a competitor makes it easier to pay, use, or get service, that’s where customers will likely defect to.

The most loyally-beloved brands leave no room for friction at any stage of the customer journey from awareness to purchase to support. Amazon’s frictionless checkout is a masterclass in reducing barriers. Uber’s seamless payments and location tracking make it stickier than taxis.

Removing small frustrations and creating delightful end-to-end experiences is a huge driver of loyalty and retention. It’s often the little things like:

• Intuitive self-service tools and knowledge bases
• Integrated cross-channel shopping like “buy online, pickup in-store”
• Smart anticipation of needs before the customer even has to ask
• Simple subscription renewal and management

When you make your own brand the low-effort default compared to alternatives, customers stick around not because of maverick loyalty – but because it’s just easier that way.

Q&A

Q: What’s more important, functional product quality or emotional brand connections?

A: Both elements are crucial for true loyalty. A superior product is table stakes, but emotional resonance is what inspires advocacy.

Q: What’s a good first step for building community?

A: Start by actively listening to how customers currently interact with your brand and each other on platforms like social media. Look for existing affinity signals to nurture.

Q: How much should be invested in loyalty programs?

A: There’s no set budget – it depends on your margins and goals. Many top programs reinvest 5-10% of annual revenues. The key is aligning valued earn/burn mechanisms.

Q: What if we can’t offer crazy-good service due to lack of resources?

A: Get scrappy! Let customers self-schedule calls, share video tutorials, offer live chat. Compensate with responsiveness.

Quiz

1. Which of these is NOT one of the 3 key ingredients of brand loyalty? a) Functional value
   b) Emotional connection c) Low prices d) Inertial value
2. True or False: Offering rewards points is enough to increase customer loyalty? a) True b) False
3. Brands should focus content on: a) Listing product features b) Customer success stories
   c) Founder’s bio d) Company milestones
4. Which can help make customers feel like exclusive VIPs? a) Access to member events
   b) Limited-edition products
   c) Higher loyalty tiers d) All of the above
5. Creating effortless experiences is important for loyalty because: a) It’s trendy b) Competitors are doing it
   c) It reduces switching costs d) The brand seems innovative

Answers: 1-c, 2-b, 3-b, 4-d, 5-c

Scoring:

5 correct – You’re a loyalty master! Looks like the strategies really resonated.

4 correct – Great foundational knowledge – keep learning and applying!

3 or fewer – Time to go back and study the key concepts closer.