What is Brand Loyalty and Why Should you care?
According to marketing guru Ted Levitt, brand loyalty is “the willingness of a customer to continue doing business with a company in the face of price increases and other attempts to lure them away.” In other words, it’s when customers are so satisfied with a product or service that they’re unwilling to switch to a competitor, even if the competitor offers a lower price. So how do you create lasting brand loyalty among your customers? Read on for tips.
Resonate with your favourite brands
Think about the brands you use most often and why you keep going back to those brands. Statistics show consumers will stay loyal to a brand and will be 57% more to purchase from that brand and 76% will buy from that brand over a competitor.
People stick with brands that they trust and consistently deliver on their promises. Several factors inspire loyalty, including superior quality, customer service, and a shared company ethos or mission.
However, digital disruption plays a part and new generations of adults, which is why it is so important for brands to keep evolving and not become stagnant.
Spoil your clients
There is a reason why there are loyalty schemes and extra perks when birthdays roll around, which help keep your customers loyal and coming back for more. So, remember key dates in the calendar and pitch your marketing with your customers in mind. An example of this is exhibiting at conferences. Giving out relevant freebies attracts customers, new and old, and it could also be a trial period for the service.
Customer Service Rules
People want to know that they have been heard and working with user-friendly products is also important. Newsletters and consistent content in the form of blogs and ads help to convert and keep your customers loyal. Encouraging customer surveys and honest feedback also helps you to find out what is needed from your service.
Active listening is a critical skill in running a business. If it’s not your forte, then it’s preferable to hire a Virtual Assistant or Customer Services professional who can take time out to look after your customers. When your company listens to your customers and cares about what they think, this goes a long way towards building up your brand.
Among the brands that go above and beyond include Apple, Lush and Starbucks; if you go into any of their shops, you will more often than not get an experience even if you choose not to buy. The advisors, especially in Apple and Lush, are trained to respond to visitors within 30 seconds of entering the store and are hired on the basis of their passion over their knowledge.
Be willing to receive feedback
This is admittedly a tough aspect of business, though by being willing to receive feedback, you can then respond and scale your business. Responding to feedback is about tweaking your product or service so that your ideal client audience will come back for more. There are plenty of websites out there, including http://www.capterra.com and www.g2.com, that show what customers think of your product if you’re in the Software as a Service (SaaS) space and others such as www.trustpilot.com and www.amazon.com for other products.
The beauty of customer loyalty is that a customer will not only return they will also bring other followers with them. Loyal customers are also the easiest to upsell to and may also become advocates for your brand. Even in the 21st century, the power of word of mouth cannot be underestimated even when it’s seen on sites like Trust Pilot, Quora and Reddit for non-SaaS companies. Figures from KPMG show that as many as 86% of consumers will recommend a company to friends and family.
Motivating loyalty programmes
No matter the size of your company, you can also keep your customers loyal by running incentives or affiliate programmes; running these well is a skill in itself. Studies have shown that existing customers are 50% more likely to purchase from you and buy higher-priced products than your new customers. This connection is strengthened further when you offer a loyalty programme.
Trust building goes hand in hand with loyalty and taking the time to find out what your customers are interested in will help both the products that exist in your business and the return of your customers time and time again.
Offering perks such as insider info, exclusive deals and special sales are some examples. You can try out various programs to see what your customers respond to best.
Always keep in mind the different ideas mentioned above to help your business stay fresh, whether a start-up or an established business. Here you have read about some tips to help you keep your customers loyal.
Ultimately, people want peace of mind and reassurance in their choices, which is something that only loyalty can provide. So, while there may be many tempting alternatives to choose from, most consumers will keep coming back to their tried-and-true favourites.