Brand loyalty is something most marketers dream of achieving —who doesn’t want a consumer who loves
your brand so much that they’re continuously coming back? What more could you ask for?
In order to unpack why
brand loyalty is important, it’s necessary to first outline exactly what being ‘loyal’ to a brand entails.
A consumer being loyal involves them being committed to a certain product or service that a brand produces, leading them to make repeated purchases over time.
A loyal customer is one that will visit multiple stores to search for a certain brand and if that brand is not available, they are likely to forgo that purchase entirely. Businesses can drum up brand loyalty through introducing
- loyalty or rewards programmes
- product trials, and
- brand ambassadors.
In essence, loyalty is created with trust and care. A consumer wouldn’t make the effort to repeatedly purchase a product time and time again if they didn’t have a good experience the first time around.
If a brand is consistent in delivering high-quality products or services, it’s already making strides in building a very
loyal client base.
So now that we’ve outlined what being a loyal customer entails, let's take a look at why brand loyalty is so
Well, having a loyal customer base can be a helpful tool for giving your brand a competitive edge. This is important because, nowadays, consumers have an endless amount of options at their fingertips, with every brand fighting to be the absolute best.
If your brand offers a unique product or service, it increases the likelihood that customers will make repeated purchases, regardless or how convenient it is to attain or how much it costs.
This gives your brand premium pricing ability
. This means that once your brand garners a reputation as credible and trustworthy with the consumer, you will be able to charge higher prices for goods as people are willing to pay more for good quality.
According to Penefit
, it costs five to 10 times more to find a new customer than to keep an existing one
. This means that building a faithful consumer base can be cost-effective
Additionally, your brand will also benefit from a higher volume of sales
because customers that are consistently coming back are regularly purchasing product, increasing your business’s volume of sales.
This can also lead to increased consumer retention
as if you build a large enough base of loyal customers, they will begin to influence other
potential buyers, growing your reach.
However, it is not just your business that benefits from brand loyalty, your customers do too!
Consumers benefit from being brand loyal as they get the VIP treatment: exclusive deals, access to promotions and an enhanced customer experience
.What brands are you loyal to without fault? Why? Let us know in the comment section below.
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Do you want to learn more about how you can improve brand loyalty for your business? Then be sure to check out these Five ways to improve brand loyalty.
*Image courtesy of Pexels