Let’s start with the definition of brand loyalty. It is the tendency of consumers to continue buying the same brand of goods, or services, over competing brands. Pretty straightforward, right?
This is also known as “customer retention” – your ability to keep customers coming back over a period of time. However, there is a difference. Brand loyalty is generally rooted deep within your consumer. Positive emotions within that form trust, comfort, and satisfaction that launch you to the number one spot, in their mind.
Is It Important?
The longer version of that, yes, of course. Brand loyalty is what will turn your business into a brand that thrives. The best customers that are loyal also bring you new business. This is priceless. There is not a single ad or ad spend that can match that of referrals that heard nothing but praises.
What Are The Benefits of Brand Loyalty?
Brand loyalty not only brings repeat business and valuable referrals, but it also gives you the ability with the following:
- Higher margins – brand loyalists will generally spend more than other consumers. This connects back to what I said earlier about brand loyalty being a feel thing more than anything. Not to mention if you are spending less to get more business then your expenses also drop.
- Brand recognition – are you wanting to become a household name? Then gain brand loyalty. Brand loyalists will sing your praises every chance they get. The outcome here is a no brainer.
- Hedge against changing markets – you have the edge when consumers believe that they need your product. This also helps when competitors try to raid your brand with a massive marketing push. If your brand loyalists have that feel with your brand, they won’t hear the noise from the competition.
How Do I Get Brand Loyalty?
Brand loyalty can be created by several factors. It could be product quality. It could be feel-good customer service or client success. It could also be a brand alignment with beliefs. There is no turn-key answer here. That said, remember that a customer who has made more than one sale does not qualify as brand loyalty. Sometimes cheap and convenient can fake brands out. Then they lose to the next equally matched brand that gets in the customers face.
To add to the feel-good aspect, you can enable programs to encourage brand loyalty. A lot of people love Starbucks. A lot of people love Starbucks even more with a rewards program.
Let’s not forget about customer service or client success. If you are giving your consumers the VIP treatment then they will pay you like they are a true VIP. Positive interactions are a winning combination of feel-good and rewards.
The icing on the cake for all this – personalization. Make your rewards personalized. Make your customer service or client success personalized. Provide a great product or service, but also make the interaction with your brand unique. That could be simply pairing trends and using the customer’s name in marketing. It could be hand-written notes (yes, even in 2019). It could be providing an ongoing service to make sure that the client is getting the most use out of your product.
Regardless of what you are making or offering – be customer first. No matter what. Yes, you have to think like a business owner to launch. But you have to think like a consumer to stay around.