A loyal base of customers is often better than a fair-weather following for modern brands. 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.
We are all guilty of remembering the poor customer experiences that we have encountered rather than the good, and this is representative of its value for brands. 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’.
In order to secure loyalty, it’s useful for your brand to know exactly what your customers are looking for. 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. One example is car dealerships, where in order to build brand loyalty, they need to treat all customers with the same, excellent service — regardless of whether they are shopping for used cars or a brand new model.
Brand relationships can be long-standing if you master loyalty, and a survey by InMoment found that more than three-quarters of consumers have held brand-specific relationships for more than a decade, choosing the service they value over cheaper alternatives. 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.
Developing trust in your business can be sought through some simple steps. Firstly, prepare everything 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.
Take heed from the saying: “Trust is the easiest thing in the world to lose, and the hardest thing in the world to get back.”
Nostalgia has set many high-profile marketing campaigns apart from their competitors. 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.
Nostalgia works in this way due to its ability to prompt an emotive response from customers, by reminding them of a specific set of feelings, a time or a place. No matter how far you move away, home comforts can help a customer stick with a brand that is local to them.
Discounts and special offers
It’s not uncommon for brands to get caught up in attracting new customers to their business, but this means that older consumers become overshadowed. 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.
Brand loyalty is rooted in a variety of factors, and customers will have unique needs to fulfil if brands want to win their loyalty. 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.