Brand Loyalty: Benefits of a Lasting Relationship
By Nicole Danneker
In a world of fake news and general distrust, brand loyalty is a paramount attribute for a business’s success. To explicate brand loyalty, it is a consumer behavior pattern where a person feels dedicated and committed to a specific brand’s identity and, as a result, are repeat purchasers of items/services sold by that brand. Brand loyalty relates to the consumer’s feelings towards the brand itself, not just specific products. This differs from consumer loyalty, which is on the opposite end of the spectrum and encompasses the spending power of customers and money-saving offers.
Of course, everyone wants their customers to become repeat buyers. But, to make it so, you need to captivate them with your brand.
Just How Important is Brand Loyalty?
To show how big of an impact this consumer group has, the Pareto Principle, as described by the Forbes Agency Council, states that 80% of your company’s future revenue will come from 20% of your current customer base, making it imperative that you focus on creating loyal, repeat customers that will continue to frequent your business.
According to the Loyalty Lion blog, “after the original purchase, the likelihood of a customer
making a second purchase is close to 30%, and after they make a second purchase, the likelihood of a third jumps past 50%.” This statistic shows how quintessential your initial sale is to the future of your relationship with that customer. On average, a loyal customer is worth ten times the value of their first purchase. Customer retention also guarantees you will save money. Harvard Business Review states that customer acquisition is anywhere from 5 to 25 times more expensive than it is to keep a current one, proving even further the importance of keeping customers gratified and satisfied.
How Do You Turn a Customer into an Enthusiast?
You have made a sale, but what makes them come back? Here are three basics to keep in mind with every interaction.
1. Customer Satisfaction is Dependent on Your Quality
Whether you are in a product or service industry, quality is the first thing a person will notice. Your customer’s satisfaction is reliant on the quality of what you give them. In technical terms, customer satisfaction measures how a product or service compares with the initial expectation. Having a high-quality and convenient product/service a person can rely on, as well as exceeds expectations, gives you a good chance on a return. However, a great product alone may not be enough.
2. Be More Than Responsive with Your Customer Service
After quality comes the service in which the product is given. With a friendly, “customer first” attitude, you’ll be more likely to win over a customer and start a relationship with them. People desire to feel valued for their purchases. Gratitude and a wholesome attitude towards both purchasers and shoppers will create a positive sentiment in the minds of your market. Customer service is one of the highest marketed attributes within a company because of the importance of having a good impression to ensure future sales. According to Newvoicemedia.com, “After one negative experience, 51% of customers will never do business with that company again.”
3. A Brand is Nothing Without Awareness
To have a returning customer, you need a brand that stands out from the rest of companies that have similar products/capabilities. Besides sales, brand awareness is the biggest concern of a business, especially when it is small. When your logo or ad is seen, your customers should have positive assimilation to what you offer, and how you offer it. If your brand does not stand out, your customers will have a hard time with recognition. This is where the utilization of an online presence, including email and social media marketing, is important. A consistent and appealing brand on top of quality service and product ensures success.
The Next Step
Once you have a loyal group of repeat customers, word-of-mouth will take you to the next step. This means you will have a reputation to uphold. Every transaction is crucial to how people continue to perceive your business. If you have any advice on maintaining and growing your consumer base, let us know!