What do you think of when someone says the word "brand loyalty?" If you're like me, your thoughts might turn to a brand such as Nike or Apple. Brands such as these are often associated with high-quality products and great customer service. But what does it mean for a person to be loyal to a brand? In this blog post I'm going explain what brand loyalty is and how companies can build brand loyalty among their customers so they'll continue to buy their products well into the future!
What is brand loyalty?
Brand loyalty is the loyalty that a customer has for a particular brand. In other words, it's when people continue to buy or support a certain brand in a long time.
The importances of brand loyalty to a business
Brand loyalty is important to a business because:
Brand loyalty makes a company become stronger in competition.
Thanks to brand loyalty, a company can beat its competitors in the market because customers are loyal to their brands. The advantage of having brand loyalty is that companies have less need to spend money on advertising. For example, Apple's brand loyalty is so strong that many people wait in line outside Apple stores for hours or days before a new product launches, which means that the company doesn't need to spend as much money on advertising.
Brand loyalty can make customers satisfied with products/services.
Brand loyalty can cause customer satisfaction because companies often provide better services for their loyal customers. More specifically, when one of a company's loyal customers have trouble with their product or service they are more likely to give that person special treatment because the customer has been loyal to that company for several years.
Brand loyalty can help companies establish long-term relationships with customers.
Apple is a good example of how brand loyalty leads to long-term relationships between companies and their customers. Apple's loyal customer base means that the company can count on them for support when it needs help with a new product release or an advertising campaign, which is especially helpful for a technological brand like Apple because technology changes so quickly.
Brand loyalty can increase customer lifetime value.
Customer lifetime value (CLV) is the amount of money a company would make from one of its customers over the entirety of their relationship with that business. The more loyal a person is to a certain brand, the higher their CLV will be. This means that companies are more willing to spend money on their loyal customers because they know that the customer will likely return the favor by spending money with the company. This is especially important for companies that offer subscription-based services or sell products that have long lifespans, such as Apple, Amazon, and Samsung.
How to build brand loyalty in Marketing?
There are several ways that companies try to build brand loyalty. Some of these include:
Providing Better Customer Service
One of the most common ways for a company to build brand loyalty is by providing excellent customer service. For example, many credit card companies partner with national charities so they can help their loyal customers in times of need. Also, many companies hire their loyal customers to be brand advocates who will promote the company's products and services to others.
Strengthening Customer Relationships
Another way companies keep their loyal customers is by strengthening customer relationships on social media. For example, Boston Market posts photos of its loyal customers on its Facebook page so current and future patrons can see how other people enjoy the restaurant's food.
Offering Loyalty Programs
Loyalty programs are a great way for companies to reward their customers and encourage brand loyalty. For example, Starbucks has a rewards program that gives customers one point for every purchase and ten points for every 125 stars they accumulate. Once they reach 100 points, customers can get any food or drink on the menu for free!
Providing support services
A lot of companies try to build brand loyalty by providing support services, which can be helpful for people who are loyal to a specific company. For example, Amazon offers its Prime customers access to Amazon TV shows and movies before the general public. This perk helps to build brand loyalty because many people enjoy getting early access to content that other people won't be able to view for several months.
Can a company lose its brand loyalty?
Yes, companies can lose their brand loyalty for several reasons. For example, if a company releases a new product/service that doesn't live up to its old products/services it could cause people to become less loyal because they know the company isn't as good as it used to be. Also, some companies sell out and start producing products or offering services that aren't as good as they used to be, and their loyal customers will stop buying from them because the products/services don't meet their expectations.
In conclusion, brand loyalty is a powerful tool for marketers to use when trying to create long-lasting relationships with their customers. There are many ways that companies can try and build this type of customer relationship through providing good customer service, strengthening social media interactions, offering rewards programs or by giving support services. However it's important not to lose your loyal fans as they may stop buying from you if you release products/services they don't like or sell out due to financial reasons.