Consumer loyalty essentially refers to the tendency of consumers to consistently choose and repurchase products or services from a specific brand. Therefore, consumer loyalty trends significantly influence the success of any brand or business.

In recent years, one particular consumer segment has been gaining significant attention for their high level of brand loyalty– halal consumers.

Did You Know: A recent study reveals that over 80% of halal consumers tend to stick with their preferred brands, significantly higher than the average consumer loyalty rates.

But what makes halal consumers loyal to certain brands? And how can you attract and retain them in the competitive halal market? Let’s find out–

Factors Influencing Consumer Loyalty in Halal Consumers

Consumer loyalty is the degree of attachment and commitment that a customer has towards a brand, product, or service. Here are 4 key factors influencing consumer loyalty in halal consumers, and how businesses can address them:

1. Trust

Trust is the foundation of any relationship, especially between a business and its customers. Halal consumers are very particular about the authenticity and quality of halal products and services. They want to be assured that the products they buy or the services they use are compliant with the Islamic teachings and Shariah law.

How to Build Trust?

To build trust and credibility among halal consumers, businesses can:

• Obtain Halal Certification: Businesses should obtain halal certification from a reputable certifying body to acquire the halal logo.
• Authenticity and Consistency: Demonstrating authenticity is crucial in building trust among halal consumers.
• Educate and Engage: Businesses can actively educate and engage with halal consumers to build trust.
• Customer Feedback and Reviews: Encouraging and addressing customer feedback and reviews is an effective way to build trust.

Did You Know: According to a study, the halal logo directly affects customer loyalty in the Malaysian fast food industry.

2. Value Perception

Value perception is the customer’s evaluation of the benefits and costs of a product or service. Halal consumers usually have a strong perception of value when it comes to their purchasing decisions.

They believe that halal products and services, in addition to providing religious compliance, are also of higher quality, safer, and healthier. This perception of value creates an enhanced sense of loyalty towards halal brands, as consumers believe they are also receiving added benefits beyond meeting religious requirements.

How to Create Value?

To create value for halal consumers, businesses should focus on the following strategies:

• Quality Assurance: Emphasize the superior quality of halal products and services compared to non-halal alternatives.
• Safety and Transparency: Communicate the halal safety measures implemented throughout the production process, from sourcing to packaging.
• Health Benefits: Highlight the health benefits associated with consuming halal products. For example, emphasize attributes such as absence of harmful additives, and adherence to hygienic practices.
• Customization and Personalization: Provide options for customization and personalization to cater to the diverse needs and preferences of halal consumers.

3. Lack of Alternatives

Lack of alternatives is another factor that influences consumer loyalty in halal consumers. Halal consumers have limited choices when it comes to products or services that are halal-compliant. This creates a high switching cost for them if they want to switch to another brand or provider.

How to Penetrate the Existing Gap?

To capitalize on the lack of alternatives in the halal market and penetrate the existing gap, businesses can employ the following strategies:

• Innovation and Differentiation: Innovate and differentiate products or services to stand out from competitors in the halal market.
• Collaborations and Partnerships: Collaborate with other businesses or influencers to expand the halal product or service offerings.
• Market Education and Awareness: Invest in marketing efforts that educate and create awareness among consumers about the availability and benefits of halal products or services.
• Online Presence and Accessibility: Establish a strong online presence and make halal products or services easily accessible to consumers.

4. Social Influence

Within communities, individuals often seek recommendations and guidance from their peers when making purchasing decisions. Therefore, social influence also plays a significant role in shaping consumer behavior and loyalty among halal consumers.

How to Use Social Influence to Benefit?

To leverage social influence and benefit from it in the context of modern halal consumers, businesses can implement the following strategies:

• Influencer Marketing: Collaborate with influential individuals within the halal community who have a strong following and credibility.
• User-generated Content: Encourage halal consumers to create and share their own content about the brand’s products or services.
• Community Engagement: Actively engage with halal communities and forums to build rapport and establish a presence as a trusted brand.
• Partnerships with Halal Associations: Collaborate with local or regional halal associations and organizations to showcase the brand’s commitment to halal practices and values.

Future Consumer Loyalty Trends in Halal

The global halal market is expected to grow 5.6% annually, reaching $2.9 trillion in the coming years. This shows how the market for halal products and services is expected to significantly grow, which also subsequently presents new opportunities and consumer loyalty trends:

Here are 3 key trends to consider:

1. Personalization: Halal consumers will demand more personalized products and services that suit their preferences, needs, and lifestyles. Businesses will need to use data analytics, artificial intelligence, and machine learning to create customized product offerings.
2. Innovation: Halal consumers will seek more innovative products and services that offer new features, benefits, or experiences. This will require businesses to invest more in research and development, creativity, and technology.
3. Sustainability: Halal consumers will also care more about the environmental and social impact of their consumption choices. Therefore, businesses will need to integrate ethical and halal consumerism into their offerings.

Also read: Rise of Plant-Based and Clean-Label Halal Food Products

How To Get Halal Certification?

As highlighted above, obtaining halal certification is crucial for businesses aiming to tap into the growing market of halal consumers. Here are the steps involved in getting halal certification:

• Step 1– Familiarize yourself with the halal certification process and the specific requirements set by the certifying authority in your country or region. Requirements may include ingredient sourcing, processing methods, and hygiene standards.
• Step 2– Choose a recognized certifying authority that aligns with your business needs and standards. Find out how the American Halal Foundation (AHF) offers all that and more.
• Step 3– Prepare all necessary documentation and ensure compliance with the halal standards set by AHF. This may involve ingredient and product analysis, manufacturing processes, and facility evaluations.
• Step 4– Schedule an inspection and audit with AHF. Our Account Executive will assess your compliance with halal requirements and verify that your products or services meet the necessary standards.
• Step 5– Upon successful completion of the inspection and audit, AHF will issue a halal certification for your products or services. Display this certification prominently to assure halal consumers of your credibility.

Also read: The Detailed Halal Certification Process at AHF

Wrapping Up

The rise in halal consumerism offers substantial opportunities for consumer loyalty trends globally.

Businesses can leverage this growing market by aligning their products and services with the values and expectations of halal consumers, to open up a highly profitable business avenue.

However, to succeed in the halal market, businesses need to understand the factors influencing consumer loyalty in halal consumers, the future consumer loyalty trends in halal, and how to get halal certification for their products or services.

Want to learn more about obtaining halal certification for your business? Contact our AHF experts today to navigate the certification process successfully