What Is Brand Loyalty? Your Questions, Answered
Every business owner wants to attract repeat customers that love their products and services. Repeat purchases boost profits, referrals, and can help businesses grow rapidly over time. However, what is it called when a target audience prefers a particular business over the other?
This is called brand loyalty.
Brand loyalty is vital for any business in a competitive landscape. In a natural free market, consumers can choose any company they want. Brand loyalty will be the key to convincing your audience to choose your business over your competitors.
In this article, you’ll learn everything there is to know about brand loyalty and why it’s essential for your business.
What is Brand Loyalty?
Brand loyalty is the affinity customers have toward your brand. It’s an earned privilege you receive when a customer is satisfied with your products and services. Brand loyalty isn’t a difficult concept to grasp, and it’s actually quite commonplace throughout the world. For example, you may have heard of the “Apple vs Android” debate in the last decade.
Millions of people are loyal to Apple products, even if there is proof that other products are better. The same is true with Starbucks. They enjoy a great cloud of brand loyalty across the United States in one of the most competitive arenas in the world: the coffee industry.
The reason is that many of these customers are used to the brand and wouldn’t choose another business, even if they were given the opportunity. Brand loyalty plays an integral role in how consumers build lasting relationships with businesses, as though they were people.
Why is Brand Loyalty Important?
There are several statistics that show the importance of brand loyalty for businesses. These stats include:
- 82% of companies agree that customer retention is more affordable than acquisition (Emarsys).
- 65% of a company’s business comes from existing customers (G2)
- Improving customer retention by simply 5% can boost profits by as much as 95% (Forbes)
The importance of brand loyalty is clear. Customers that experience a business are more likely to work with them again compared to a new prospect. Now that you know how important brand loyalty is to your business, it’s time to state ways you can leverage brand loyalty to grow your company.
How to Establish Brand Loyalty
Establishing brand loyalty goes beyond marketing and sales strategies. If you provide excellent products, services, and an enjoyable consumer experience, forming brand loyalty with your audience won’t be too difficult. In fact, here are some ways to attract loyal customers to your business:
- Make sure that the experience you provide is above any that your competitors can offer.
- Render helpful customer service at all times, primarily with a smile.
- Always value customer satisfaction.
By following these principles, you can leverage brand loyalty to boost your sales and revenue and cultivate a fanbase centered around your business.
Do You Want to Setup a Loyalty Campaign?
Brand loyalty is essential for growing your business. By setting up a loyalty campaign, you can transform this strategy into a profitable avenue. To learn more about our customer loyalty solutions, contact us today to speak to a member of our team.
