Consumer Behavior Trends: The Impact of Brand Values On Customer Loyalty
Today, the eCommerce realm boasts of approximately nine million retailers, and a staggering 2.5 million of them located in the United States alone. It is quite evident that the landscape of online retail has grown fiercely competitive. However, standing out in this crowded market goes beyond just offering a great product. We see increasingly that to truly capture and retain your audience, even the best of eCommerce players need to connect with them on a profound level, and it all begins with the brand values.
So, what are Brand Values?
Brand values are the foundational beliefs and principles that an organization upholds. These values convey what truly matters to the company. It influences everything from how they source their products to how they treat their employees and deliver their products to customers. The most successful brands prioritize the following values:
- Consumers always come first.
- Think bigger than the monotonous business functions.
- Work towards better solutions everyday.
- Hire a team to follow an aligned mission.
- Prioritize integrity along with good business practices.
These values not only direct your business operations but also embody your mission, both in your interactions with customers and day-to-day functionings of your business.
For eCommerce businesses, establishing brand values is paramount for communicating your identity, your values, and how you pursue your mission. In the sea of eCommerce options, these values serve as your secret weapon for transforming casual visitors into loyal customers.
The Impact of Brand Values on Customer Trust and Loyalty
Ecommerce continually experiences significant growth and transformation. We, at Allure Commerce, aim to perceive the changing factors influencing online shopping behavior with each client project. In BigCommerce’s Global Consumer Report, a survey of over 4,000 online shoppers in the US, UK, Italy, France, and Australia uncovered the prevailing trends in retail today and those shaping its future. Brand values were a central focus of this particular investigation.
We are here to align your brand values with your eCommerce strategy. Schedule a consultation today.
What do consumers want?
- Consumers Value Honesty and Transparency:
In a market inundated with choices, online shoppers now require more than just a quality product to gain their trust. Shoppers seek brands that authentically express their values, both in their product offerings and behind the scenes. Consumers today want to understand the identity of the business owner before supporting a brand, underscoring the need for transparency.
Shoppers want to know what a brand stands for, not just in the spotlight, but also in its core operations.
- Brand Values Do Influence Purchase Decisions:
The survey conducted by BigCommerce further indicated the brand values that make customers most willing to purchase from a brand include:
– Honesty and transparency about their activities and their impact on the planet and society (e.g., sustainable packaging, cruelty-free practices).
– Investing in brands and products with a strong social impact (e.g., supporting black-owned businesses, B-corps, social enterprises).
– Seeking customer feedback and demonstrating commitment to implementing improvements.
Notably, consumers resonate most with brand honesty, transparency, and fair employee wages and benefits. This sentiment is particularly strong among higher-income consumers, where the significance of fair employee wages and benefits increases with income.
- The Emphasis on Sustainability:
Sustainability is one of the foremost brand values that consumers actively seek. As per the UN World Commission on Environment and Development, sustainable development aims at meeting the present needs of individuals without making a compromise the ability of future generations to meet their own. In eCommerce, this means conducting business activities which responsibly use natural resources to balance environmental, social, and economic factors.
The Global Consumer Report suggested that most respondents rated sustainability as a significant factor. 32% of respondents marked it as “very important”, while 52% respondents marked it as “somewhat important”.
- Varied Importance Based on Demographics:
The importance of sustainability varies among consumers, depending on their age and income. Gen Z attach the greatest importance to sustainability when making purchasing decisions, whereas Baby Boomers are less likely to consider it. So, it really depends how you are able to communicate your brand values to your target audience and how they fit in the customer journey. This presents a substantial opportunity for luxury brands and those targeting younger demographics to gain a competitive edge.
Similarly, income plays a significant role in determining the importance of sustainability. As income rises, so does the emphasis on sustainability.
In a landscape where millions of brands are just a click away, today’s online shoppers require more than just a great product. Brand values are here to stay and offer a unique opportunity for businesses to humanize their brand, forge deeper connections with customers, and build loyalty. Whether it’s sustainability, human rights, or education, establishing and embracing your brand values allows you to stand out in a crowded market and resonate with your target audience.
Allure Commerce opens up the 4 dimensions of success for your business. With our first stage- Digital Strategy Consulting, we ensure that the all of your brand values are best addressed and aligned with your eCommerce strategy.
Let’s talk brand, let’s talk success today!