What You Need To Know About Brand Loyalty
What You Need To Know About Brand Loyalty
You’ve heard about customer loyalty, right?
It starts when a consumer has a great experience with a company and keeps buying. It’s usually based on convenience, prices, and customer service.
Basically, you create a customer-centric environment that makes people want to come back to your company.
Well, there’s another sensation that levels-up your retention game: brand loyalty.
At first it sounds like a fancier word for customer loyalty, but there are fundamental differences. (Welcome to the marketing maze.)
Brand loyalty happens when a customer resonates with a brand. They’ll buy from that brand over other companies because of any combination of these things:
- Customer service
It’s still the result of your marketing and hard work, but it’s created by personal experiences.
Brand-loyal customers keep coming back regardless of convenience or price. They want to stick with a brand for a long period of time.
Creatopy calls brand loyalty the “warranty to keeping your business in motion and growing.”
When you create a loyalist, you create a relationship.
Both customer loyalty and brand loyalty involve retention strategy. You just approach them differently. AdRoll says that the main difference between the two is customer spending vs. customer perception.
They emphasize that brand loyalists are more likely to buy more products from the same brand because they identify themselves with your brand.
These customers see your brand as a crucial part of their everyday lives. They choose your brand over all other brands. Basically … you become part of their own personal brand.
Through their marketing, companies influence just how much people resonate with them.
Here’s the deal: people want a company that will make them feel like they can be who they want with whatever vibe they want. Companies know that.
Branch Basics wants to "empower others to create an environment in which their families can thrive." (Goal: powerful family-oriented person who cares about the environment)
Adidas highlights overcoming challenges, being “ready for every sport.” (Goal: the underdog who can push through adversity to be and reach their full potential)
Apple encourages you to make greatness within yourself using Mac computers. (Goal: someone empowered, Steve Jobs vibes)
That sounds like more than a plea to buy their product. It’s an offer to join a movement, to be someone.
You want brand loyalty because it increases your revenue in a way that regular sales won’t.
And since we mentioned Apple…
There’s a long-standing battle between Android users and Apple users, revolving around which product is best.
Many Android devices sell for much lower prices and, arguably, work better for some people.
But, Apple loyalists are committed to the brand. The company has loyalists from middle-school-aged to middle-aged. They like the style, the usability, the exclusivity, the security.
Apple knows their customers, knows the market, and creates great UX.
So, they remain a powerhouse.
That’s what it looks like to build brand loyalty.
Long story short, customer loyalty is important. But with brand loyalty, you get exclusive benefits like these:
You know those “how likely are you to suggest this to a friend” surveys? When someone is all-in for a brand, that answer is going to be “10/10.”
Brand loyalists want to share your service because of the level of satisfaction they get when they use it.
Of course, when you have brand ambassadors, you’re going to start seeing new customers. 81% of customers trust the suggestions of family and friends over suggestions from companies, even those they already buy from.
Whether or not those customers also become ambassadors, they increase your one-time revenue as well as your upsell and cross-sell revenue.
The ambassador-to-new-customer cycle creates a ripple effect.
It makes sense that, with brand loyalists, your brand will grow exponentially over time. Loyalists buy more than one product from your company because it’s not just the product they want, it’s the brand.
If they make repeated purchases, regardless of price or competition, your profits will skyrocket.
One loyalist leads to a new customer, leads to a new loyalist, leads to two more customers -- it grows from there.
According to Marketing MO, getting a new customer is five to seven times more expensive than retaining an existing one.
Conversion requires constant pivot to be sure you’re offering the right deals at the right times. That means paying for new ads, videos, graphics, products, just to keep them coming back.
Because brand loyalty is relationship-based, that focus shifts to consistency within the experience.
Loyalists will come back regardless of one-time offers, so you spend less to market to them.
Consumers don’t choose brands blindly.
When a lot of people flock to one brand, it makes you think that company must know what they’re doing.
Whether their loyalty started with a good deal or a good dose of nostalgia, their commitment will boost your brand’s credibility.
Plus, it brings recognition with a competitive edge.
It’s still possible that some will brand-switch. Blame it on short attention spans or too many options, but brand loyalty isn’t as easy to create as it used to be.
According to Meltwater, 49% of consumers switch brands for a coupon. 35% of men and 33% of women will switch brands for a better price.
That doesn’t mean you’re out.
Loyalists will still choose your brand over competitors if they’re really in it for the brand.
If you can show them why your brand will always be right for their lifestyle, you’re just about guaranteed business for life.
Brand loyalty is a game-changer. Your business can survive without it. But if you unlock brand loyalty, you’ll see your business thrive.
What brands are you loyal to? Why did you choose the company? Is it something about their aesthetic or maybe their company values?
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