Brand loyalty is achieved when your customers begin to continuously purchase from you rather than from your competitors. If you are a small business owner or manager, make it a point to foster brand loyalty. Your business’ growth depends on faithful customers and here are a few reasons why:
It Will Direct Your Marketing Strategy
Building your marketing strategy around customer loyalty helps you stand out from the crowd. When you understand the different elements that keep these customers returning, then you can use those ideas to market on almost any platform. Being consistent with what loyal customers want allows them to build a deeper trust in your company where they will not look at your competitors’ marketing materials. They will also be more likely to share your marketing materials with their family and friends who need your services.
It Will Increase Revenue
It’s been proven that a high retention rate is linked to business growth. Customers who return are likely to purchase about 5% more on their second visit, and that total can climb substantially as a customer continues to return. They are also more likely to tell others about your company, so it is impossible to measure the impact of loyal customers on your overall business revenue. Additionally, these customers often become your strongest allies if someone tries to fault your company online, so it is impossible to tell how many lost sales they may have saved for you.
To illustrate this phenomenon, let’s pretend that one happy customer tells three people about your brand. These three tell three more friends about your product and you have 13 customers. The three new customers each tell three more and you have a total of 40 customers using your company. Each of 12 new customers tells three more and–now you see the pattern. The increase is exponential! It’s easy to see how quickly your company can grow through loyal customers.
It Will Change Your Products
Brand loyalty is a great way to find out what customers are searching for in the marketplace and help them to stick around. When you take the time to talk to them, they can tell you about tweaks that you need to make to your products to make them even better. They can also tell you about novel ways that they have figured out to use your products, and you can market with the best of those ideas. Loyal customers can also help you identify products that they want that you do not carry, so you can expand your lineup with products that are sought after. Listening to loyal customers also gives you the advantage of spotting problems quickly so that you can get them rectified before they become more significant issues.
If you want your company to grow, then you need to concentrate on building loyal customers. They will be the backbone of your company and will help you recognize how to best innovate your business to better serve your customers in the future.
Brand loyalty comes from having a solid brand in the first place. To get help developing your brand, book a consultation with me!