How can scent Encourage Customer Loyalty?
Stores, hotels, banks, clubs or any type of industries need to make a long-lasting impression on their customers if they're focussed on building customer loyalty. If you can’t even remember an experience you had somewhere why would you come back? Memories and emotion are linked to the sense of the smell as it is the most powerful sense in terms of remembering an experience, especially if it is a powerful one.
Scent creates a positive feeling for a brand and an emotional connection which is one of the cornerstones towards building customer loyalty.
“Scent is the second most important factor when it comes to brand loyalty.”
In regards of this making an exceptional first scented impression is crucial to being remembered and encourages an increase in loyalty. Scent will generate positive memories which will keep guests, clients, customers or consumers coming back. As scents trigger memories of pleasant emotions it encourages the development of an emotional bond between the brand and its consumer.
Sensory Branding is very powerful in relation to building customer loyalty in the long term as it will encourage once off customers to become regulars.
Facts and studies on how scent increases consumer dwell time
Lindstrom reported a 70% increase in brand loyalty when a third sense was engaged.
Helm’s Bank introduced scent which helped, “double their revenue”, as well as the number of new account openings. Customer satisfaction shot up 20 percent, to 99 percent.
"In Amsterdam a scent was diffused in a shopping centre. This made the customers more inclined to revisit the shopping centre and also recommend it to others."
– Morrin and Ratneshwar
Research by Spangeberg shows that the intentions to visit a store go up when the store is scented.
As customers have a better in store experience when a pleasant fragrance is diffused it will encourage customers to come back to the store and thus increase consumer loyalty.
Studies from the Gartner Group have shown that 80% of all revenue is derived from 20% of all customers and a study from Bain reported that repeat customers spend approximately 67% more than new customers. Thus any strategy which focusses on building customer loyalty is likely to dramtically improve the bottom line.
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