Brand Loyalty
Brand loyalty is hard to achieve in this age of selling with coupons and constant sales. Add the Internet, and that makes it even harder to maintain and increase brand loyalty because it's so easy and fast for customers to compare prices, suppliers and products. Enough complaining: This is the new normal. Learn how to measure and improve brand loyalty even in these modern times.
Brand loyalty
Let's be a lot more specific about what you mean by brand loyalty.
1. The customer will only buy your brand?
They will go out of their way?
Go without if it's not available?
Wait until it is?
2. Loyal to the "branded house" meaning they buy all relevant products/services from the company?
Some customers may be loyal to one product or service or brand.
Are you doing an effective enough job at educating and recommending all the relevant products/services a customer could need?
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Learn more about Cross Selling.
3. Is this real or forced loyalty?
For many products and services, someone else decides what to buy or what companies or products are on the short list.
This is true for consumers. A mom tells her kids, "You can buy this cereal or that cereal." (And not the sugar-coated dessert-for-breakfast cereal the kid really wants.)
This is true for business customers. The IT department says, "We've standardized on Microsoft."
The real test for loyalty is if the person using the product/service or brand had the option to buy any brand they wanted.
4. Does the customer behavior make them look loyal?
Think of your cell phone, bank and business software. Are you really loyal to those companies or is it just too much of a hassle to switch?
A lot of companies have an inflated view of customer loyalty when they assume customers who keep buying are loyal.
Marketers call this "high-switching cost" and many companies aim to make it very easy for first-time customers to try with a free offer and then people stay because they've invested time. Some email marketing services do this. They lure you in with a free trial and then after you've invested hours loading in all your customer information into their database for you, you are much less likely to want to consider going through that again to try another supplier.
What drives customer loyalty?
Great insight from Tom Searcy from Hunt Big Sales on what drives customer loyalty.
"Here's how customers consider your value, from lowest to highest:
- If you know your product, you are a human catalog
- If you know your services, you are a technician
- If you can match your products and services to the customer's needs, you are a sales person
- If you know a customer's problems and business, you are a consultant
- If you know a customer's industry, market challenges and competitors, you are an expert"
Next page - how to measure brand loyalty
and how to build brand loyalty
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