How to Build Brand Loyalty
In today's competitive environment, brand loyalty assists
businesses in distinguishing themselves from competitors, gaining a significant
market share, and ensuring consistent profits year after year. Learn how to
create customer brand loyalty.
Brand Loyalty Definition
Customers who commit to a specific brand and repeatedly
purchase products are said to be brand loyal. Brand loyalty enables businesses
to generate revenue from existing customers over time. Customers who are loyal
to a brand will frequently advocate for its products and services, referring
friends and family via word-of-mouth marketing. Creating brand loyalty is
essential to brand strategy and provides businesses with a competitive
advantage.
Brand Loyalty vs. Customer Loyalty
Brand loyalty and customer loyalty are two types of loyalty
with different motivations. Customers who are brand loyal will form an
emotional attachment to the brand and make purchases because they believe the
brand provides the best quality and service, regardless of price. Customer
loyalty, on the other hand, is solely determined by pricing. To maintain
customer loyalty, brands must frequently offer discounts and promotions.
Why Is Brand Loyalty Important?
Building brand loyalty is critical because it can benefit a
company in the following ways:
1. Competitiveness: Brand-loyal customers have high brand
awareness and an emotional attachment to a particular brand. This loyalty
provides a competitive advantage to brands.
2. Marketing: As ad hoc brand ambassadors, customers who are
loyal to a brand will frequently recommend it to their friends and family.
Brands with a loyal customer base rely on word-of-mouth marketing and, as a
result, can use fewer marketing strategies to attract new customers. In
general, it costs more for brands to acquire new customers than it does to
retain existing ones.
3. Revenue: When a brand has brand loyalty, it can rely on
its existing customers for revenue and is less reliant on finding new
customers. Strong customer retention can result in increased revenue for the
company.
How to Increase Brand Loyalty
Building brand loyalty requires a positive customer
experience. Consider the following strategies to improve customer satisfaction
and encourage customers to return to your brand:
1. Take social responsibility. Consumers in the Millennial
and Generation Z generations are more likely to spend money on brands that
prioritize sustainability and corporate social responsibility as part of their
business practices. Brand loyalty can be gained by sharing sustainability
efforts and advocating for social issues.
2. Increase brand awareness. Brands that use consistent
messaging and imagery across social media and email marketing can help increase
brand awareness. Logo and branding familiarity can increase loyalty. PepsiCo's
beverage Pepsi, for example, has had a familiar, circular logo with red and blue
colors for decades, which contributes to brand loyalty.
3. Ascertain product quality. High product quality is an
essential component of developing brand loyalty. Customers are more likely to
repurchase and recommend new products if brands provide higher-quality products
than competitors.
4. Put customer service first. Customers will be satisfied
if they can easily contact you to solve their problems and know you are quick
and responsive. FAQ pages on websites, chatbots, and phone representatives
available 24 hours a day, seven days a week are all examples of ways to meet
customer needs and increase customer satisfaction.
5. Recognize and reward brand loyalty. Creating loyalty
programs or rewards programs that offer incentives for repeat purchases or
giveaways to frequent customers can help build brand loyalty.
