How to develop value propositions

to Build small business brand loyalty

On a light-colored office table is a computer, a black calculator, a pen, and a notebook with the text BRAND LOYALTY. Business concept.

Confession Time: I have never purchased a pair of sneakers that wasn’t Nike’s. Even when I buy sneakers as gifts to my daughter or friends, it’s always Nike. Why? Because I’m loyal to the brand. They have the best designs, they’re comfortable, they have affordable sneakers for working out, and fly shoes when I don’t mind a style splurge. That’s why Nike ranks #1 in brand loyalty in  the Athletic Footwear category and #10  in brand loyalty in the US.  Think about it , that’s 16 years of purchases given exclusively to one brand. Brand loyalty like this should be every business’ goal. But what is brand loyalty?

Published by Oct 2021 | Data Source: Brand Keys

what is brand loyalty

Brand loyalty is essentially the decision a customer makes to purchase repeatedly from the same brand based on emotional connection. Brand loyalty isn’t based on a brand having the cheapest pricing or the most prestige, it’s based on the emotional attachment a customer makes with the brand the drives them back again and again. This leads to long-term, repeat customer spending, decreased marketing efforts and budget, marketplace stability, increased customer lifetime value, increased referrals, and an advantage of the competition. One of the most important ways to increase brand loyalty is to develop strong value propositions.

Develop a strong value proposition

A value proposition is what makes your business the choice over your competition and why your business is beneficial to the consumer.  Your value proposition sets you apart by (subtly or directly) highlighting the advantages of buying products or services versus your competitors. It explains to consumers why purchasing from your company directly benefits them. To develop a strong value proposition you should:

  1. Complete a SWOT Analysis and determine your competitive advantage.
  2. Create a list of consumer benefits and what sets you apart from the competition based on your analysis and think about what would drive your target audiences to emotionally connect to a brand.
  3. Use this list to develop appealing marketing messages to communicate your value proposition to your customers
  4. Identify where and how you plan to share these messages. This should include your website, social media platforms, paid ads, etc.
  5. Share your value proposition!!!
When following these steps keep in mind of what drives customers to be loyal.
  • Consumer Drivers: Meeting consumers needs and wants
  • Social Drivers: How the brand and its products are perceived by consumer’s social group
  • Brand Drivers: The brand’s reputation. What it stands for? What it is known for? Is it well respected for its offering and business dealings?

 See the example above of a value proposition Nike included to promote signing up for their Member Program which is their loyalty program. IMPORTANT NOTE: A loyalty program is a crucial tool in developing brand loyalty so make sure your brand has an effective program and strategy

“Where All Athletes belong” – Nike offer athletic wear for just about every sport you can think of. This headline sends a message to consumers to say, all athletes belong with us because we can meet your needs… you belong here with us. This is an emotional appeal that satisfies the need to belong and could encourage the feeling of support and acceptance. 

“Things are better as Nike Member” – Nike is saying Hey! Join the Cool Kids Club and you will reap the benefits which will be even better the already great offering we have and even better than our competition.

“Get first and exclusive access to the newest styles & innovation, free shipping, birthday rewards and more. ” – And here are some of the direct benefits you will receive from joining. People love to know what actual benefits your business is offering them when trying to make an appeal. 

Signing up to become a Nike Member will mean that they have more access to drive the same consumers back to them using retargeting campaigns. These members will get first look at new styles and likely be more open to trying out new products because they have built a bond and trust with the brand. For this same reason, members are more likely to still purchase despite pricing changes because it’s where they feel safe and comfortable. Nike is a great example of how developing a strong value proposition you can appeal to consumers to build long-term loyalty but this isn’t limited to large corporations. Businesses of all sizes can do the same thing. Remember just because your business is new or small is has the potential to grow to massive heights if you operate as though you will one day be competing against giants like Nike!

Running a small business can be challenging in today’s climate but with the right tools, your endeavor can become a thriving enterprise. Planning and goal-setting are essential for consistent branding and marketing in your organization. When in doubt, consult a professional or visit King Marketing 101 for tips and resources. 


Raymell King-Foster (Ray), has a Bachelors in Business & Organizational Leadership in Orlando, FL and a professional background in non-profit, education, marketing design, and management. She is the President and Creative Director of King Creative Solutions, a creative design agency that delivers high-quality design, strategies, and expertise to their clients.

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