Businesses rely on loyalty. Existing customers make up approximately 65% of a business’s income, with companies such as Apple being the epitome of brand loyalty and having a core of followers who will only purchase their products. In this article, we take a look at what it is that makes a person stay loyal to a specific brand.
An InMoment survey discovered that over 75% of consumers have built up a relationship with a brand that spans over a decade. This is even when there are cheaper options 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 don’t choose a new brand or service; in case they aren’t happy with their choice.
But how do businesses manage to build this level of 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 the business understands their needs. It’s also imperative to be honest. Businesses shouldn’t offer a service or product that isn’t entirely what the customer is expecting; this is a sure-fire way to breaking 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.”
Customer service is possibly the most important factor to someone staying loyal to a brand. 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’. The brand indicates they have your best interests at heart by saying ‘for you’ and that they want to stick with you throughout your driving life experience — ‘for life’.
It’s also imperative that a company knows what a customer expects. Businesses are there to provide a simple service. If they can’t meet a user’s expectations, no matter how high, then they’ll ultimately look for answers and services elsewhere.
Nostalgia is one way of the easiest ways a business or brand can grab loyalty. 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. Data in the UK found that British people are, on average, more loyal to their banks than to their marriage vows! The average Brit stays with their bank for 17 years, while marriage in the UK lasts only 11 on average. Often, the relationship with a bank begins in childhood as a customer follows the bank account that their parents use.
Discounts and special offers
Many customers actively vent their frustrations that it’s only new customers who are 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 is often the discounts and special offers that are 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.
Of course, the needs and desires of each customer or consumer are different. Therefore, it’s important to regularly conduct customer feedback surveys to ensure you fully understand what your customer base is looking for. Doing so will allow you to have the best chance of retaining customers in the future.