Brand loyalty is such an important aspect of your marketing because it costs up to five times more to obtain a new customer, rather than to re-engage your current customers. The outcomes of structured loyalty systems and marketing, are increases in both:
• annual order value and
• ordering frequency
Studies have shown with as little as a 5% increase in customer retention profits can increase by 25-95% We outline key aspects of brand loyalty marketing below.
Brand loyalty in modern business
The 21st century is a fast-paced era that is not constrained by many boundaries. Ours is a free world, where we make our choices largely as free creatures. When something fascinates us, we try to hold on to it. But as soon as we find the next shiny thing, we tend to forget about our last favourite. Such is human nature.
However, this way of life that is practiced by common people is not very healthy if you view the situation from the perspective of someone who is a manufacturer or seller. This is why brand loyalty is crucial, and why it is a strategy that all smart marketers must follow!
What is brand loyalty?
Brand loyalty can simply be defined as the tendency of customers of purchasing products from the same brand over and over again, rather than switching to other choices. Loyal customers follow your brand and focus on buying from you, regardless of the costs or convenience. It is basically the representative of your customer’s commitment to using your services.
So, for example, consider you run a company that manufactures shoes, and 70% of your customer base returns to you for buying a new pair of shoes. Based on these figures, it can be said that you retain a good lot of your customers and that you have got yourself quite a follower-ship.
Why is brand loyalty crucial?
Brand loyalty is an important concept in the world of marketing. Understand that presently we are living in a world where customers are flooded with choices. They have more alternatives available to them than they can try in one lifetime. So, when they come to you, it is not about their need but rather about a chance that you have got. Now it is up to you to convert that chance into an opportunity for your business by winning the loyalty of your customer. Only when you will have happy and loyal customers on your side, will you be able to survive the brutal cut-throat competition that is prevailing in the marketplace.
What is the power of brand loyalty?
Brand loyalty is a very old strategy used by marketers. When a brand thrives, it is mostly this factor that is responsible for its success. The figures that we have acquired from various sources are proof of the same-
- Hubspot found in a survey that about 93% of the customers are more likely to purchase from a brand to which they are loyal.
- One is required to make about 4 to 5 times more expenses in finding new customers than what he spends on retaining them.
- According to the data by Brands Key, if you boost brand loyalty in your consumers by even 7%, you can shoot up your lifetime profits by 85% percent.
- In that study, it was also revealed that increasing your brand loyalty by 3% can cut back your costs by 10%.
- Current customers are likely to spend about 67% more on your brand as compared to new customers.
- According to 65% of the consumers, if any brand offers them exceptional customer service, they are more likely to purchase from that brand again.
How can you make loyal customers?
Now that we have established that customer loyalty can ensure the survival of a business, let’s move to our next step, which is to determine how you can earn the allegiance of your customers.
- Quality products
If you wish to make a cult of customers that are loyal to your brand, then in order to do that you must offer your consumers quality goods. If your customer will get good products from your store, they will feel satisfied, which, in turn, will ensure their loyalty.
- Good customer services
Just like quality products, good customer service also goes a long way in retaining consumers. So, if your brand will treat your customers in the right manner, hear their grievances in time, and solve their problems without giving them much trouble, their loyalty will be yours.
- Reward program
In the age of digitalisation, it is not very hard to win the heart of your customers. You can easily create for them a reward program where they win a certain number of points for each purchase or recommendation. Your customers can later redeem these points when they make another purchase.
- Loyalty program
You can win your loyal customers by promising them certain benefits. You can create a loyalty app for this purpose which can be downloaded on a smartphone. So, every time your customer completes one step of the loyalty program, offer him some reward. This will ensure his return time and time again.
Thus, in the present market, brand loyalty is a tool that can keep your sales soaring if you know how to use it. You can use the few options that we have suggested above to make it possible