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. This highlights that nowadays, brand loyalty is essential to businesses. 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.
Perhaps the easiest way to ensure a loyal following is nostalgia. 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 traced back to family members, such as parents. Past data in the UK found that the public is, on average, more loyal to our banks than we are to 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.
Another way nostalgia plays a big part is by people who stick with a brand because it ‘reminds them of home’. No matter how far you move away, home comforts can help a customer stick with a brand that is local to them.
A survey by InMoment found that more than three-quarters of consumers have held brand-specific relationships for more than a decade, with many choosing the product or service even though there may be a cheaper option available. 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.
So, how can businesses build trust? 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. By appearing to be an expert in their sector, a business can It’s also imperative, to be honest. Businesses should not offer a service or product that is not entirely what the customer is expecting. This is a surefire way to break any level of trust.
After all, as the saying goes: “Trust is the easiest thing in the world to lose, and the hardest thing in the world to get back.”
Customers often complain that they’re forgotten about and new customers are the only ones to be rewarded. 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 being loyal to the brand. 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.
Last but not least, perhaps the most important factor is customer service. 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 motability 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’.
It’s also important that a company understands the needs and expectations of customers. 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.
Of course, each customer or consumer has different values and desires. 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.