Even when customers find a product that meets their needs, they may still be interested in trying out and experimenting with other brands. What can your business do to make them stay?
What is Brand Loyalty?
Simply put, customers who are loyal to a brand will continue purchasing from the business and will likely try new products from the brand. Customers who are loyal to certain brands will be more likely to leave positive reviews, to encourage others to try the brand, and to be an invaluable word-of-mouth brand ambassador. Customers who attach positive experiences to a product or brand are devoted and unlikely to be swayed by your competition’s marketing efforts. In the day and age where customers have endless choices, it is priceless for businesses to have customers who repeatedly choose their brand over others, regardless of convenience and price.
Brand Loyalty vs. Customer Loyalty
Though closely related, there are key differences between brand loyalty and customer loyalty. Customer loyalty is the commitment from customers to continue purchasing from the business based on the value and money-saving benefits received from their purchases. Customer loyalty is largely dependent on price, money benefits, and rewards as opposed to positive experiences and relationships.
It is chiefly based upon value and customer spending power; the more value the customer receives, the more they will shop with your brand. As discussed in the last section, brand loyalty is built upon positive experiences and positive perceptions of the brand. These customers will return again and again because they value the positive experiences and the subsequent gains from their relationship with the brand. Brand loyalty is based upon emotion while customer loyalty is based upon tangible or quantifiable value.
However, both brand loyalty and customer loyalty can cause customers to eschew other brands and stick by yours. Brand loyalty and customer loyalty are equally important. As a result, businesses should aim to target both in their marketing strategy. Why?
The Power of Loyalty
Businesses are often unsure whether they should invest more in customer retention or more in new customer acquisition. Which is better for their business? Far too often, businesses choose to focus on attracting new customers rather than nurturing their relationship with existing ones. It is completely understandable for businesses to want to grow their customer base. However, by focusing all their attention on new customers, they lose the opportunity to build lasting loyalty—which sustains brands for a lifetime.
At its core, a powerful brand is built upon loyalty. Loyalty builds a solid foundation for long-term, sustainable success. Businesses with loyal customers can withstand just about anything. Not only do they continue their operations, but they continue to grow and thrive. Brand loyalty and customer loyalty retain current customers, create lifetime customers, increase the lifetime value of each customer, and turn customers into invaluable brand advocates. Loyal customers will invariably attract new customers as they spread positive word-of-mouth and social media reviews of your products and services, majorly reducing marketing costs and giving your business more leads.
How is Your Business Building Loyalty?
Loyalty isn’t easy to come by, and it can easily evaporate if you aren’t nurturing customer relationships. What is your business doing to build meaningful relationships with customers?
Are you ready to learn ways you can invest in your customers? Check in with Sun Sign Designs next week as we continue exploring loyalty and how businesses can build it.
Just like other marketing efforts, there isn’t a one-shoe-fits-all solution. If you’re ready to craft a unique marketing strategy that builds loyalty while fitting your business’s needs and goals, contact Sun Sign Designs for a consultation. We love solving difficult marketing challenges.