As the saying goes: “Quality is better than quantity”, and this is key for understanding the effectiveness of brand loyalty. The probability of selling a product or service to an existing customer is 60-70%, with 65% of a company’s business said to come from existing customers. Companies such as Apple are the epitome of brand loyalty, with the tech company having a core of followers who will solely buy their products and stick with them throughout their lifetime. Here, we will look at exactly what it is that makes customers stay loyal to a brand. Join reputable car dealers Lookers, and explore the key methods for developing brand loyalty.
Customer service is often overlooked, but it is the key to developing brand loyalty. If a brand or company provide you with consistent quality service, you’ll be more likely to stick with them. According to a Yotpo study, 23% of us blame poor customer service for choosing a different brand. This shows that people’s perception is crucial. Often, companies will provide a personal approach in a bid to entice the customer. A prime example is car dealers Lookers, whose slogan is ‘For You, For Life’. This indicates that the brand has your best interests at heart by saying ‘for you’ and they want to stick with you throughout your driving life experience — ‘for life’.
If you want to strengthen brand loyalty, then acknowledging the needs and expectations of customers will prove invaluable. Businesses are there to provide a simple service. If they can’t meet a user’s expectations, no matter how high, then they will ultimately look for answers and services elsewhere. Customer service is crucial to gaining a customer’s trust and this helps build loyalty.
A recent study found that customers admitted to having specific brand relationships which spanned back as long as 10 years, and the value of service was preferential over cheaper options. A customer will often stick with a brand or product because they know what to expect. That trust factor has been built up and enables them to know exactly what they need to. The fear of the unknown is a major reason people would not choose a new brand or service in case they aren’t happy with their choice.
To build trust, businesses need to adjust their approaches slightly. Firstly, they must prepare with the customer in mind. This will help to develop a clear client-focused objective and show the customer that a business understands their needs. It’s also imperative to be honest, and businesses should not offer a service or product that is not entirely what the customer is expecting. This is a sure-fire way to breaking any level of trust.
A trustworthy asset of any company is their uniform as it is able to portray a level of high importance. One example of this is Virgin, in which their cabin crew uniforms strongly represent the brand image they wish to portray and are easily identified across their industry.
Loyalty and nostalgia go hand in hand in terms of brand loyalty, as when combined they create a significant emotive response. This is because it’s not particularly in the hands of a business and is simply a matter of ease for the customer. This links into the trust factor too, as it’s the fear of the unknown. Many customers stick to what they know and this can be tracked back to family members, such as parents. Past data in the UK found that the public are, on average, more loyal to our banks than we are our marriage vows! The average Brit stays with their bank for 17 years, while marriage in the UK lasts only 11 years on average. Often, this relationship with a bank begins in childhood as a customer follows the bank account that their parents use.
Discounts and special offers
Brands can often feel incessantly compelled to attract new customers into the business, but by shifting the focus solely onto new customers, existing clientele can feel left behind. Therefore, discounts and special offers are important to make sure that existing customers feel valued. It may seem hard work to keep them happy, but this is a simple way to show them their worth. In many studies, it has come back that discounts and special offers are in fact the top reason for brand loyalty. This is because rewarding loyalty helps to provide a good experience and is beneficial for both parties, meaning they don’t feel the need to shop around.
For businesses, customers are the biggest indicator of success, and a connected, loyal audience is hard to compete with in this sense. Therefore, it’s important to regularly conduct customer feedback to ensure that a business can fully understand what it is their customer base is looking for. Doing so will allow them to have the best chance to retain customers in the future.