Telling a new story of customer loyalty

Picture this: Laura’s been using the same mascara brand for fifteen years. It's what her mother recommended, what she's always known. But last week, she watched a TikTok video from a makeup influencer trying something new – and within minutes, she was adding a completely different brand to her online shopping cart. No second thoughts, no brand loyalty guilt. Just a simple click that ended a decade-and-a-half relationship. 

Laura’s story isn't unique. It's the story of millions of consumers who are rewriting the rules of brand loyalty, one purchase decision at a time. 

The old story vs. the new reality 

Once upon a time, brand loyalty was a fairy tale that actually came true. Customers would discover a brand, fall in love, and live happily ever after – or at least until retirement. Families would pass down preferences from generation to generation like heirlooms. "We've always been a [brand] family," they'd say with pride. 

That story is over. 

At Magenta, we've been delving into what loyalty means to consumers today, and how they talk about it. What we've discovered is that the very narrative of loyalty is shifting beneath our feet. Modern consumers are no longer bound by habit or tradition. They're the protagonists of their own shopping stories, actively seeking out new brands and better deals across every sector imaginable. 

Take James, who spent his Saturday morning doing something his father would never understand – researching energy providers. Not because his current one was terrible, but because he'd heard about better deals online. Three hours later, he'd switched to a company he'd never heard of before, simply because they offered him the best value. His loyalty wasn't to a brand; it was to his own smart decision-making. 

The information revolution changed everything 

What's driving this shift? It's partly about access to information. Laura didn't need to visit a makeup counter or read beauty magazines to discover her new mascara. James didn't need to wait for an energy company to knock on his door. They both had more data at their fingertips than ever before, enabling them to make informed decisions quickly. 

The cast of characters influencing these decisions has expanded too. While traditional advertising still plays a supporting role, influencers – whether they're content creators on social media or trusted experts in specific fields  – now wield enormous power over consumers. These aren't just celebrities; they're people who've built authentic relationships with their audiences, one honest review at a time. 

Rewriting the loyalty playbook

Despite this challenging new landscape, brands can still build and maintain customer loyalty – but they need to work harder for it. The successful brands are those learning to write compelling new chapters in their customer relationships. 

Consistency is king: Brands must consistently deliver on their fundamental promise. Whether it's product quality, customer service, or functionality, consumers will quickly abandon brands that no longer meet their basic requirements.  

Reciprocal Value: Modern consumers expect something in return for their loyalty – they want to feel like they're getting the better end of the deal. This could be through formal loyalty programs, exclusive benefits, or simply the feeling that they're getting added value from the relationship. 

Staying Current: The brands that retain loyalty are those that evolve with their customers. Stagnation and complacency are a recipe for customer defection. Whether it's updating technology, improving user experience, or adapting to changing preferences,  think of it as keeping your story fresh and relevant. 

Competitive Pricing: While price isn't everything, it remains a crucial factor. However, "affordable" means different things to different consumers, and some are willing to pay premium prices for superior value.  

So, what’s your value? 

Speaking the new language of loyalty

The language that resonates with modern consumers has evolved significantly, and brands must adapt their messaging accordingly. 

Speak to their Intelligence: Remember Laura switching mascara brands? She didn't do it impulsively – she did it because she trusted her own judgment. Modern consumers consider themselves as savvy and knowledgeable. They understand market dynamics and are aware of marketing tactics. Brands should acknowledge this intelligence rather than talking down to them. Rhetorical questions that tap into their own thought processes can be particularly effective: "Looking for something better?" hits differently than "Try our amazing product!" 

Shift from Rewards to Wins: The traditional language of customer rewards is losing its power. Instead of talking about "points" or "rewards," consumers respond better to language that makes them feel like they're getting one over on the company. Terms that play on gamification such as "win big" or "beat the system" resonate more strongly than traditional loyalty program language.  

Emphasise Simplicity: When trying to attract new customers, the barrier to entry must feel minimal. Words like "simple," "easy," and "just one click" can be the difference between someone taking the leap to try a new brand or sticking with their current provider despite being dissatisfied.  

The new ending

The new reality is that brand loyalty must be earned continuously, not just once. Consumers like Laura and James are more empowered, more informed, and more willing to switch than ever before.  

In this new story of customer loyalty, the brands that win are those that help their customers feel like the smart, savvy heroes of their own shopping adventures.