Seeking Happiness: How Brands Can Build Loyalty through Joy

Feeling disconnected? Overwhelmed by the constant negativity? You’re not alone.

In 2024, the United States hit a new low in the World Happiness Report, falling eight spots to 23rd in the global rankings. The yearly publication ranks countries by level of happiness, based on self-reported data. The report reflects that concerns over the economy, politics, and loneliness are contributing to Americans’ melancholy.

With U.S. consumers craving connection, brands have a powerful opportunity to offer something more than just products: They can deliver joy. And that joy is a key ingredient to building lasting brand devotion with customers.

Creating a joy-fueled trifecta

The terms customer experience, customer engagement, and customer satisfaction are often used interchangeably, but they’re not the same.

You can compare them to vacation planning. Customer experience is the entire trip—from the moment you book your flights to hotel checkout. Customer engagement covers everything you do during the trip—e.g., exploring new places, trying new foods, and posting photos on social media. Customer satisfaction is how you feel about the whole experience. Did it meet your expectations? Would you recommend it to a friend?

Customer satisfaction is the foundation and the bare minimum. It’s like Amazon’s fast shipping. It’s convenient, reliable, and meets a basic need, but does it make you excited to open the box? Probably not.

Customer engagement is where things get interesting, where interactions are sparked and relationships are built. Take Sephora’s Beauty Insider program. It’s not just about buying makeup; it’s about making members feel part of a community by offering exclusive content and opportunities to connect with others who share a passion for beauty products.

Customer experience is about the entire journey. Disney excels at creating memorable and magical moments at every customer touchpoint, particularly in its theme parks and resorts. From the moment you start planning your trip to the moment you leave the park, every detail is carefully orchestrated to create an unforgettable experience. Apple is another great example, with its seamless integration of hardware, software, and retail experiences.

Leveraging a joy tool kit

If customer satisfaction is about meeting expectations, customer delight is about exceeding them. Delighting customers with unexpected acts of generosity, tokens of appreciation, and an enhanced brand experience is where the magic happens. This is where true loyalty is forged.

Want to create moments of joy that customers will remember? It doesn’t require grand gestures. Here are four ideas to consider as you strategize how to delight your customers.

•  Micro moments of magic
  Small, personal touches make a big impact. Think of a handwritten thank-you note from an Etsy seller. It’s a simple gesture, but it feels friendly and genuine. Pet retailer Chewy is known for sending handwritten sympathy cards and even portraits of customers’ pets after learning about their passing. Or consider the snacks a hotel might offer upon arrival—a complimentary bottle of water or fresh cookie can make a big difference when you’re tired from travel
  
  Showing appreciation through unexpected gifts or rewards is another powerful way to build loyalty. Imagine the delightful surprise of receiving a bonus item in a regular order. Ipsy, the beauty subscription box, sometimes includes extra, surprise items in its monthly boxes, making subscribers feel valued and appreciated.
  
  
• Exclusivity and recognition
  Making loyal customers feel valued and seen through exclusive offerings and personalized recognition is key. A VIP program with early access to sales and a personalized birthday email with a special discount can make your best customers feel special. Delta Airlines’ SkyMiles Medallion program is a prime example, offering tiered benefits like priority boarding and upgrades to frequent flyers, making them feel recognized and rewarded for their loyalty. Another brand leveraging the power of customer recognition is Dunkin’, which offers members badges connected to their purchases.
  
  
• Sweepstakes and contests
  The chance to win creates excitement and aspiration, but it’s crucial to implement contests responsibly. Focus on engagement, not just lead generation. Make sure the rules are clear and fair, and avoid alienating customers who don’t win. Take the REI Adventures contests, in which customers can win outdoor adventures, gear, or experiences. The contests reflect REI’s pillar brand value: encouraging engagement with the outdoors.

Making the business case for happiness

Think focusing on customer happiness is just a nice-to-have bonus? Think again. The data is clear: Happy customers are brands’ best advocates. In fact, a Mintel study found that 70% of U.S. consumers say they would write a product review to support a brand they like and that positive experiences drive recommendations and repeat purchases.

This kind of first-person advocacy not only brings in new customers but also reinforces existing customers’ loyalty, further increasing share of wallet, which translates to a significantly healthier bottom line.

Finding ways to surprise and delight customers creates emotional resonance and strengthens brand affinity. Happy customers are more likely to be loyal brand advocates—boosting word-of-mouth marketing and leading to increased lifetime value and reduced customer acquisition costs.

Fostering community and combating isolation

Social isolation and loneliness are a growing problem today. Brands have a unique opportunity to be a force for good—they can foster community and connection by moving beyond simply selling products to building genuine relationships based on shared values.

Pop-up events can be more than just marketing stunts; they can be opportunities to create informal, welcoming spaces where customers can connect with each other and the brand in a relaxed setting. The key is to design events that encourage interaction and cultivate a sense of community.

Example: At festivals like Coachella, brands are increasingly using pop-ups to promote wellness and connection. For example, Electrolit hosted its first-ever 5K run, encouraging physical activity and camaraderie. Goodwipes provided an improved portable toilet experience for festivalgoers. And Plunge set up cold tubs for postset recovery, offering a unique wellness experience and a shared space for attendees to rejuvenate.

Wellness initiatives demonstrate a genuine concern for the customer’s overall health, not just their purchasing power. Brands can offer tools and resources for managing stress and promoting mental and physical well-being.

Example: Many Lululemon stores have dedicated spaces for yoga, Pilates, high-intensity interval training, and other fitness classes—usually taught by local instructors and offered for free or at a discounted rate. The athletic apparel retailer also hosts workshops on mindfulness, goal setting, nutrition, and other wellness topics.

Community meetups go beyond online forums and create opportunities for customers to interact in person. These meetups can be organized around shared interests, hobbies, or even just a desire to connect with like-minded individuals.

Example: Nike’s Run Club, powered by a free app the brand developed, acts as a virtual coach and serves as a hub for a community of participating runners.

These activations demonstrate how brands can create memorable experiences that go beyond product promotion to foster a sense of community and well-being—and strengthen the emotional bonds that underpin brand devotion.

Sailing the ripple effect of joy

Prioritizing customer experience, engagement, and satisfaction isn’t just about building brand devotion to cement loyalty. It’s about building a better world, one positive interaction at a time. Creating great experiences helps brands make a meaningful difference in the lives of their customers, which, by extension, contributes to a more connected and joyful world.

Remember, the pillars of loyalty are built on more than just points and discounts; they’re built on genuine connection and a commitment to making customers feel valued and appreciated. What small act of joy will you offer your customers today?

Jasmin King is an account executive for The Lacek Group. For more than 30 years, The Lacek Group has been perfecting the art and algorithms of brand devotion. We help world-class brands identify their highest-potential customers, engage them across channels throughout their lifecycles, personalize each relationship for optimal long-term results, and measure the true effectiveness of those efforts. The Lacek Group is an Ogilvy One company.