Brand Loyalty - Explained
What is Brand Loyalty?
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What is Brand Loyalty?
Brand loyalty refers to the consumers special attachment to a certain product. A customer repeatedly purchases a product from only one manufacturer, leaving out other suppliers brands.
What are the Characteristics of Brand Loyalty?
Brand Loyalty is exhibited by the customers repeated purchase of a given product, despite there being other alternatives in the market.
Customers often engage in like word-of-mouth advocacy for the brand.
Customers are willing to purchase a particular commodity at a higher price, despite there being other alternatives going at a lower price.
Why is Brand Loyalty Important?
Brand loyalty is of value to businesses because repeated purchases generate higher revenues as well as customer referrals. Brand loyalty results in:
- Building a customer base
- Creating a competitive advantage over competitors
- Higher volume and consistency of sales
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How Brand Loyalty Relates to Emotions?
A brand represents something for a consumer. Consumers expect brands to fulfill their emotional or physical needs in a way that is unique. As such, the belief and attitude of the consumers that make up a brand.
How to Create Brand Loyalty
Companies create brand loyalty by meeting a consumer's needs consistently. The needs of consumers may vary greatly. Thus, the brand will generally seek to meet customer needs in a manner that is consistent with its brand identity and image. Customers who are well served by these activities often develop brand loyalty.
Brand Loyalty Example
For instance, Apple has the strongest customer loyalty base following various reasons. Some of the reasons include:
- An effective brand strategy: The company ensures that as many people as possible have a passion for their products.
- Customer experience: The company has always ensured that customers have a good customer experience with their products.
- Continued innovation: They have always innovated in customer tech which has seen its customer ambitions.
In general, the Apple company has been able to experience several benefits from customer brand loyalty. For instance, Apple has experienced an increase in referral rate, retention rate, the share of wallet, and reduction in the marketing costs.
How do you Maintain Brand Loyalty?
There are various ways in which a business can maintain brand loyalty. Some of these ways are explained below:
- Stay on top of trends
To maintain brand loyalty, ensure that you do not let your customers down. You need to continue delivering high-quality services and products. This ensures that customers stick with your brand because they have confidence in your products or services.
- Always ensure quality
To ensure that customers remain loyal to your brand, you have to continue meeting your customers quality expectations. Exceeding the value level of your product or services is what will make them keep coming back for more purchases.
- Listen to your customers
In business, there are bound to be some hitches here and there. Things cannot be perfect all the time. For this reason, it is essential that you be there for your customers in the event that things go wrong with your brand. You can do this by answering back their phone calls, respond to any queries customers left on your social media platforms. Assure them of the measures you are going to take in order to rectify the problem.
- Meet your Customer Anticipation
To continue earning customer loyalty, you need to go beyond your customers expectations. You have to anticipate the needs of your customers and ensure that they are adequately met so that you can earn their loyalty. For instance, you can ensure that your customers are fully covered by providing a lifetime warranty on your product. This will ensure that they remain loyal to your brand and at the same time, be able to attract new customers.
- Be there for your customers
Another way of ensuring customer loyalty is to ensure that you listen to your customers. Regardless of whether the feedback is negative or positive, you need to treat each piece of information with the utmost importance. Note that when you open up a dialogue between you and your customers, it will solidify the connection they have with your product. They may even turn out to be your biggest advocates because of the concern you always show them.
- Be True and Consistent
Being consistent is also paramount in ensuring that you maintain brand loyalty. Your customers rely on you to continue delivering the same quality services as well as products. By meeting this expectation, you will be able to ensure that their loyalty is retained.
- Check up on your customers
Another way to ensure that your customers remain loyal to your service or product is to establish long-term relationships. Make a regular follow up to check on your customers experience with your product or service. This will ensure that customers are always satisfied leading to brand loyalty.
Difference between Brand Loyalty and Customer Loyalty
Though brand and customer loyalty may appear the same, there are quite different from each other.
Brand loyalty is arrived at when a customer is satisfied with the experience a product or service is offering.
Customer loyalty is achieved where incentive programs, coupons, free offers warranties extension is provided to entice customers. All these make customers happy and are persuaded to come back to make more purchases.
Customer loyalty is influenced by what is being offered. In this case, customers tend to go for what they think works well for them. Brand loyalty, on the other hand, is influenced by the experience customers have with the product or service. If the product is good and of high quality, customers tend to stick to this particular brand regardless of the price or convenience.