Brand Loyalty
Brand loyalty is an important and familiar concept in marketing science. This type of loyalty means a positive feeling that customers have towards a brand. This positive feeling turns them into stable and loyal customers. The existence of this feeling of loyalty in the customer makes the customer not go for similar products from other brands when buying. Therefore, loyalty to the brand will lead to repeated purchases and the transformation of potential customers into active and regular customers.
The Importance of Brand Loyalty
Brand loyalty is important for businesses because it significantly increases sales and overtakes competitors.
It can also remove the burden of high marketing and advertising costs from businesses and put it on customers. Because if the customers are loyal to the brand and satisfied with it, they promote and introduce our brand to others with their personal will. As a result, we get new customers through our fixed and loyal customers without spending extra money on advertising.
Types of Brand Loyalty
Brand loyalty has different levels, with the help of which we can know our real customers and produce our products and services according to their needs and wants.
1. True Loyalty
In true loyalty, there is a positive attitude and a strong desire of the customer to buy from a particular brand. In this type of loyalty, there is no obstacle for the customer to buy from his favorite brand. These customers are the most important part that we should focus on. Because they form the most profitable group of customers.
2. False Loyalty
Customers who have false loyalty will be relatively loyal to our brand. That is, if they come across products with better quality, they will easily abandon our brand. Such customers do not limit themselves to one brand. The possibility of buying again from them is high, but we cannot consider them as real and stable customers.
3. Hidden Loyalty
In hidden loyalty, people’s attitude towards a brand is positive, but their buying process is more about habit, reasonable price or easy access. Usually, in hidden loyalty, customers themselves do not know that they are loyal to a brand. However, 70% make their purchases from a specific brand.
Considering the segmentation and types of loyalty, we can segment our customers and perform our sales and marketing activities accordingly. Focusing on customers who have false or hidden loyalty diminishes or eliminates our energy and attention toward true loyalists.
Benefits of Brand Loyalty
1. Reducing the Risk of Product Development
An important point in product development is that the first customers of our new products are always our old and loyal customers. When we are comfortable with our old customers, we can focus on the development of our products with more ease.
2. Business Branding Assistance
Loyal customers talk about their pleasant experience with our brand on social networks, and this issue is very effective in business branding. Loyal customers at the community level increase people’s awareness of our brand, and the more they are, the more influence our brand can have.
3. Reducing the Cost of Advertising
Due to the introduction and promotion of our brand by loyal customers, attracting new customers will not cost us extra.
4. Increasing Business Value
In many cases, evaluating the quality and excellence of the business depends on the number of customers. Therefore, we should not forget the customers, especially the loyal customers in this regard. Rather, we should look at them as a capital.
5. Reducing the Risk of Bankruptcy
Having loyal customers means having a minimum income. This allows us to be in a safe margin and the risk of bankruptcy is minimized.
Creating Loyal Customers
1. Accurate Understanding of Customer Needs
With all our strength and using all the facilities at our disposal, we must try to identify the needs of our customers. In this way, we always go ahead to meet the needs and demands of our customers.
2. Offering Distinctive Products with a Competitive Advantage
The product that we offer to attract loyal customers must have a competitive advantage over other competitors. This competitive advantage can be in terms of price or in terms of the quality that we have observed in the production of the product.
3. Constructive Interaction with the Customer
Interaction with customers should not be limited to selling. Establishing long-term and continuous relationships with the customer, calls and text messages on occasion or even on occasion can keep the customer always attracted and loyal to our brand. For this purpose, we can use social networks a lot.
4. Personalized Services
These services can include birthday gifts or text messages. Or it can even be a service specific to a specific customer. This article shows the importance and respect we have for the customer.
Up To Sum
Considering successful brands, we can understand the secret of customer loyalty towards them. This helps us in maintaining active customers. Having customers who are loyal to our brand makes us popular among our competitors and provides the opportunity to attract more potential customers.
