The impact of brand values on customer loyalty and retention

Being a ‘brand’ and one that resonates positively with your customers in the long term is not simple. In the digital world, customers are empowered and can discover everything about your brand including what your values are, what you stand for, and what the media and other people are saying about you, all with a few clicks or swipes.

The importance of getting brand messaging right whilst being authentic and transparent has never been more important. So much so, customer loyalty and retention depend on it. No longer is having an excellent product or service that sells itself enough to survive – your brand’s reputation and what values it holds are just as vital when looking to retain a customer base.

At Ventrica, having clear brand values ensures we can distinguish ourselves as customer outsourcing specialists, ensuring our clients and staff can trust and understand our vision. The need for all brands to do the same has never been more important whilst ensuring the best customer experience on the market.

What are brand values?

Brand values are a core set of guiding principles – helping to shape your business or organisation, they are the beliefs your company holds and stands for and are the makeup of your identity. In other words, they are extremely important so that your staff and customers know exactly what you are all about and that they understand your brand’s personality and approach. In the modern world, this is becoming a hot point of contention, as seen throughout the events of 2020 and wider socioeconomic issues that your customers care about, such as the environment.

A brand needs to be able to define its values, which may seem simple enough, but require much consideration. People don’t want to see clichés or vague mission statements such as ‘provide high-quality, reliable services’– they want to see how your organisation embodies this and why it is essential to your business. It’s this authenticity that will resonate.

88% of consumers say authenticity is important when deciding what brands they like and support ¹

How do brand values impact customer retention?

Losing the trust of your clients or customers is a scenario most organisations would want to avoid at all costs. The wider implications of your brand values not aligning with your existing customers will ultimately impact customer loyalty and retention as well as your ability to attract new customers. Creating advocates becomes ever more difficult if the trust is not there, affecting how people assess your brand and whether they want to do business with you.

64% of consumers would buy from a brand or boycott it solely because of its position on a social or political issue ²

This is where building stronger customer relationships is essential, as otherwise, if your brand’s views do not align with your customers, they will look elsewhere. What companies have to remember is there are a whole host of competitors ready to swoop in and provide the experience and values a customer is looking for if you cannot. Finding an excellent service as well as brand values that match their outlook, is much easier for customers in the modern world with so many options to choose from.

• Trust – customers will trust your brand if your core values are well defined and match their own, telling other people about their experience. Keeping any promises you make in your brand values is vital.
• Credibility – a customer can quickly find out information about your brand from other customers online, so if your brand values are not honest and realistic, they will view your brand as less credible.
• Social responsibility – a brand’s role in the wider world is important, for example, charity work or being part of global initiatives. If customers do not view your brand as compassionate or ethical, this can impact their view no matter how good your product or service is.
• Support – customers need to feel supported by a company, especially after sales have been made. Your approach to the aftersales process is crucial for your brand reputation, so a commitment to be customer-centric is vital.

Consistent presentation of a brand has been seen to increase revenue by 33% ²

How to focus on effective brand values

Ultimately, it’s about providing the service customers want and expect from your company. Your brand values set out how you approach this and create your brand personality. What is it your brand cares about? How will you cater to a socially-diverse customer base? How will you help ensure customers can have an emotional bond with your brand? This all needs to be distinguishable from other brands so that you can stand out amongst a saturated market.

• Core values – what makes your brand unique and different from the rest? What will your brand never compromise on? These need to be memorable and unique above all as this is part of building your brand culture and identity. These need to be actionable and provide customers with a clear direction of what your brand is all about.
• Aspirational values – what does your brand strive to become in the future? How are you planning to achieve them and improve? These need to be meaningful and realistic, providing your customers with a clear vision of your future plans and where you want the company/service to be.

These need to be built on knowing who your customer is and what matters to them, leaning on detailed customer insights that keep your brand as informed as possible. Whilst having timeless brand values that stay consistent, it’s important to not lose track of changing values and attitudes of your customers. Being adaptable and setting your core values with room to be flexible can help ensure they do not become dated and archaic in the long term.

At least 13% of consumers would pay 31-51% more for a product and/or service if they felt the brand was making a positive difference in the world ³

Improve Customer Loyalty and Retention with Defined Values

Creating stronger relationships and working to improve customer retention in the long term can take time. Defining and establishing brand values early in the evolution of your business is advisable, but if they are not currently being integrated into your customer engagement strategy, an opportunity to strengthen the relationship is being missed.

77% of consumers will buy from brands that share the same values as them ⁴

Communicating your core values and making these open for all to see will help to strengthen customer loyalty. The customers these resonate with will then share this with others, becoming brand advocates as well as brand loyalists. The advantages of having defined values and brand identity can mean:

• Increased customer lifetime value – customers will continue to come back to your brand and purchase regularly
• More revenue – more brand advocates mean attracting new customers
• Better NPS scores and reviews – overall satisfaction will be reflected in honest, positive feedback
• Strengthen your brand reputation – you’ll have the respect of your customer base and your competitors
• Greater market share – more customers will come to you over your competitors

At Ventrica, we help brands strengthen their position by delivering the customer experience their customers want and demand. Through a true omnichannel approach, we’ve helped brands deliver on their core values ensuring they remain consistent and can provide a world-class service.

If you are a brand looking to strengthen and improve your customer relationships, discover more about our solutions by contacting us today.

1. https://www.nosto.com/wp-content/uploads/2021/08/Stackla-Post-Pandemic-Shifts-in-Consumer-Shopping-Habits-Data-Report_FINAL_compressed.pdf - Page 4
2. https://www.oberlo.com/blog/branding-statistics#:~:text=73%20percent%20of%20consumers%20cite,highly%20impacts%20their%20purchasing%20decisions
3. https://www.customerthermometer.com/consumers-connecting-with-companies/
4. https://www.vivendi.com/wp-content/uploads/2019/02/Meaningful-Brands-PR.pdf