What is Brand Loyalty?
Brand loyalty occurs when consumers become committed to buying a specific brands product or service regardless of price, competition, or convenience. Repeat purchases continue to occur despite the marketing pressure generated by competing brands. Companies often use different marketing strategies to encourage customer loyalty, including loyalty programs, trials, and incentives.
Why is it important?
It costs a business about 5 to 10 times more to find a new customer than to keep an existing one. In addition, repeat customers tend to spend 67% more than new customers.
Brand loyalty is the intent of marketing. It keeps customers coming back to purchase or use your services. And engaging your repeat customers will contribute to the bottom line of your company. More brand loyalty advantages are outlined below:
Loyal customers are repeat customers. They will purchase your product or service again and again over time. Depending on your business, one loyal customer might purchase more than 10 first time customers.
Greater Sales Volume
As you strengthen your relationships with loyal customers, it will become easier to make higher volume sales. This can happen in multiple ways, but the result is the same. Higher volume means greater sales, and greater sales lead to higher profits.
Once a business has built trust with their customer and attained loyalty, they will have the opportunity to fill more of their customer’s needs. You can make sales across product lines and focus less attention on trying to acquire new customers.
The more loyal your customers are, the more resistant they are to your competition. This is especially useful in markets where new players are constantly popping up.
Consumers like to talk about their recent purchases. And loyal customers breed new customers.
Increase your Brand Loyalty
Having a quality product that solves a problem a consumer is facing is the first step to creating a favorable brand attitude. Customers must need and like your product before they can develop loyalty to the product. Next, you need to reinforce the buying decision by targeting your marketing campaigns toward retention. Customers must be reminded of the need your product or service solved and encouraged to purchase again in the future. Common ways to achieve this are membership cards, loyalty programs, instant rewards, and point programs. Not sure where to get started? A brand loyalty expert at Frond Marketing will be happy to guide you through the process.