If you’re the type of person who buys clothes, shoes, and perfumes from the same shops every single time, then you already know what brand loyalty means. But as an entrepreneur, you need to look at brand loyalty from a slightly different viewpoint.
Your goal is not for buyers to stay loyal to your brand because it’s the most convenient option for them. Instead, you want buyers to keep supporting you because they trust you.
In this article, we’ll talk about the meaning of brand loyalty and why it’s important for your business.
Brand loyalty: what it means and why it matters
Have you ever wondered why certain products are preferred by the public when there are numerous alternatives out there? When you think about how much money and effort competitors put into trying to steal away some customers from the dominant brand, you’ll realize just how loyal these customers are.
So, what exactly is brand loyalty?
When customers continue to patronize your products because they associate your brand with positive experiences and thoughts, you have created brand loyalty. Loyal customers are valuable because they will always choose you over your competitors.
Brand loyalty is not the same as customer loyalty, though. Customer loyalty is achieved by lowering prices and offering big discounts. Meanwhile, brand loyalty is cultivated through emotional connection. This means that changes in price do not affect the customers’ loyalty to the brand.
But brand loyalty comes in different levels. There are hardcore loyalists who buy the same brand over again, split loyals who patronize 2 or 3 brands, shifting loyals who switch from one brand to another, and shifters who just go for the cheapest products.
Of course, having hardcore loyalists is most beneficial to your brand because they are often strong advocates for your company. In the next section, we’ll talk in detail about the benefits of creating brand loyalty.
Why brand loyalty is crucial to your business
Brand loyalty is proof that your company offers value to your customers in terms of product quality, customer service, and brand identity and awareness. Here are 7 reasons why your company should cultivate loyalty among your clients.
1. It’s free marketing!
When customers love a brand, they’ll talk about it with their friends and family. Usually, they’ll even post about their experience on social media and leave a glowing review on your website. The best part? You don’t need to pay a dime to get your customers talking. Just make sure that your products, services, and customer engagement are all fine-tuned to your customers’ needs and wants.
2. It gives you an edge against your competitors.
Loyal customers are not easily swayed by your competitors’ marketing tactics, no matter how cheap their products are, or how big the discounts they offer. So, just imagine how much earning potential that translates into if you have thousands of loyal customers!
3. Repetitive buying yields higher sales.
Customers who love your brand will not stop at buying one pair of shoes or one shirt. They are likely to buy every new release and collect limited edition items. Plus, they might even buy extra products to give away to their loved ones because they trust your products’ quality. So, repeat buying from loyal customers equals higher sales.
4. It saves funds usually spent on raising awareness.
Of course, if your brand is a newcomer you will need to spend time and effort to increase brand awareness. But over time, your products and services will speak for themselves— and then, your patrons will speak for you. This means that you can reallocate a huge part of funds that would’ve been used to put up billboards, TV commercials, or online ads. Just look at the big brands like Coca-Cola or Facebook. How often do you come across ads from them?
5. Customers are willing to splurge on your products— even new ones.
What happens if your prices increase or you decide to improve your package design? If customers are loyal to you, it won’t matter at all. They’ll still be willing to open their wallets and buy your products. Because they know that each item will be worth their money, they won’t think twice about spending on your brand. Plus, introducing a new product will be less risky because you know there are people who will buy them.
6. Weathering crises— economic or otherwise — will be easier.
When the pandemic started, a lot of businesses were forced to close. But companies with a loyal clientele were able to power through the economic crisis that accompanied the pandemic. In the event that your company undergoes other challenges like a negative review, you can count on your patrons, too.
Final words: How your company can attract loyal customers
Quality, integrity, and relatability are just some qualities that most people love when it comes to brands. Customer service is also crucial nowadays since most people shop online. So, it pays to train your customer service reps well and even use automation to make sure that customer requests are entertained 24/7. Tools like email generators are also helpful for keeping your company email organized so you can get back to customers ASAP. Customers will appreciate your prompt response.
Building loyalty takes time and effort, but it’s all worth it. You get free word-of-mouth marketing, an edge against your rivals, higher sales, savings in marketing, easier product launching, and support during crises.