Five Secrets to Building Brand Loyalty

Brand loyalty is a critical parameter that defines the success of a business. Statistics show that the probability of selling to an existing customer is 60-70%, whereas selling it to a new customer is just 5-20%. It is also seven times more expensive to gain a new customer than to retain an existing one.

However, despite knowing that brand loyalty is essential, businesses struggle to achieve it. This is because of the inability of the brands to devise a strategy that keeps brand loyalty as the primary goal. Many companies commit the mistake of focusing only on acquiring new customers.

Remember that it is a long road to building loyalty. However, once it comes by, the time and effort on strengthening the revenue model will considerably go down. This is because existing customers are likely to spend more than new customers. Brand loyalty is more about building relationships with customers so they stay loyal than just urging them to buy.

Here are five ways in which you can build brand loyalty:

Create a solid brand identity:

The key to building loyalty is building a brand worth following. The brand needs to be transparent and trustworthy for customers to stay loyal. The brand needs to be clear about its mission, vision, and values. If you are thinking of ways to build brand identity, get into the customers’ shoes and assess the brand. Is there anything about your messaging that seems unclear? Does the messaging and brand statement align with the needs of the customer? Invest your efforts in making your brand worth following before you set out to convince your customers to stay.

Identify problem areas and fix them:

With an abundance of brands out there, anyone can give them the products and services; it is the experience that the customers are after. They are more likely to stay if they have a seamless experience interacting with your brand. Pretend to be a customer and try interacting with your brand. Focus on page load speeds, ease of checkout, complaint handling, etc. Identify areas that need improvement and make the changes proactively. It makes little sense to wait for issues to come up before you fix them.

Keep your employees happy:

If your employees are happy and engaged, they will ensure that they treat your customers well. Demotivated employees, on the contrary, will worry only about their paycheck. Ensure that the organization’s work culture is employee satisfaction. Focus on aspects such as pay structure and work-life balance.

Prioritize customer service:

Poor customer service drives away customers towards other brands. Strengthening your customer service infrastructure can benefit your brand more than running new marketing campaigns. Make your policies customer-centric, offer round-the-clock support, add live chat to the website and listen openly when the customer complains. They are not expecting extravagant treatment, just kindness and the inclination to resolve their issues.

Bank on the power of community:

If you build a community of loyalists, your customers will do most of the work for you. While a significant amount of effort goes into community building, it is a great way to retain customers. It offers a platform for customers to interact with each other and share experiences and information. They will reward you with their business when they derive value even without spending a penny.

Conclusion:

It may seem tempting to use discounts and gifts as ways to drive loyalty. While these efforts can drive sales, reviewing the brand and fixing the shortcomings can help retain customers. If you also wish to build a strong brand identity, contact us to help you devise a strategy to build a loyal customer base.