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Brand Loyalty Gets Boost When Customers Look Alike

10 June 2012 in Trading Ideas

Why do we keep walking into our favorite stores?

We love the products? Sure.

Great customer service? No question.

But a study by marketing researcher at Michigan State University is pushing another key factor: We like to shop with people that look and act like us. In fact, according to the study, the more other customers look and like us, the more likely we’ll stay loyal to a particular store or product.

The Science Blog web site recently reported on the study’s results, which the site calls the “first comprehensive examination of the role of other customers on customer loyalty.”

While the role of other customers makes some intuitive sense, what’s surprising is that the study finds that the presence and behavior of other customers is just as important as customer service in terms of building brand loyalty.

“Basically, do I feel like they’re the same type of person as me?” said study co-author Clay Voorhees. “Do they look good? Do they behave? These factors increase the likelihood of people returning to the store.”

Science Blog said the study found companies that incorporate these factors into their marketing efforts could increase loyalty by 30 percent.

Do you think companies that embrace the study’s findings would make better investments?