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Understanding Brand Loyalty



Kirjoittanut: Maria Karimo - tiimistä Sointu.

Esseen tyyppi: Yksilöessee / 2 esseepistettä.
Esseen arvioitu lukuaika on 6 minuuttia.

Understanding Brand Loyalty 

Maria Karimo 

One of the best ways to succeed in business is being able to grow a loyal clientele. Gaining clients that are loyal to brands is often described as a friendship between a customer and a brand what comes from the desire of a customer wanting to do business with a person and not a brand. It happens when a customer likes a brand’s products or services a lot and keeps coming back to buy from them. This client relationship is special because the customer not only buys things but also tells other people how good the brand is which helps the brand grow under a positive light. Brand loyalty is built over time, and it takes long term commitment, but since I believe it’s one of the best ways to succeed, it is worth the time and effort. 

Why is brand loyalty important for companies? The core to why brand loyalty is important and why I believe all brands should aim to build a loyal clientele is because happy customers keep buying their products and tell others about them, which will bring in more customers. Also, when a company has lots of loyal customers, they don’t have to have to spend as much money and marketing trying to get new ones. 

What makes people loyal to a brand?  

  1. Good quality: If the product works well and is made well, customers will probably like it and want to buy it again. A quote by Gary Vaynerchuk “You can market your ass off, but if your product sucks, you’re dead.” This means, the quality of the product or service you offer must be good quality or in the long run you will not succeed.
  2. A nice image: If a brand seems friendly and trustworthy, customers might prefer it over others. Brands should have a deeper reason for selling the product or service, they should show that the have a passion for it and when clients notice this they will stand out from competitors. This is very crucial in Finland because due to Fins valuing a trustworthy company, they tend to become loyal to them for a very long time, even recommending the brand to their children and grandchildren. Providing excellent customer service is one of the biggest keys to building a loyal clientele and the news about your brand will spread under a positive light. Brands should also have a “employee first” mindset. Clients will notice this during interactions with the brand what will create a sense of trust and are more willing to support the brand knowing the employees are treated well what will show in the work input and customer interactions.
  3. Good value: If people feel like they are getting a good deal for their money, they are more likely to stick with the brand. Sometimes, brands give special discounts or benefits to loyal customers what creates a sense of safety to the client and a feeling where both parties benefit. Some examples for benefits are, functional benefits, what refers to the product or services performance. Another example is emotional benefits, meaning how the product or service makes your customer feel. How you are able to make people feel while being your customer is critical for building brand loyalty.
  4. Cost to switch: If it’s too much trouble or too expensive to switch to a different brand, customers might just stick with what they know. Once a client realizes the brand is beneficial to them, they don’t feel the need to try out other brands due to the uncertainty if they are good or not.
  5. Being available: If the product is easy to find when customers need it, they’re more likely to stay loyal. Good customer service before, during and after the sale also helps a lot. Being available for customers as well as potential customers helps the brand stand out from competitors and creates a sense of safety and security for the customer to reach out to you.

  

Sometimes, why people like a brand doesn’t make sense, it’s just how they feel. For example, some people might love a brand even if it’s not the best quality, and others might not care about a brand that is really good. 

  

There are different types of loyal customers: 

  1. Super loyal: These are the clients who always buy the same brand and love to talk about how great it is. These customers are highly valued by the companies and often create friendship like relationships with them.
  2. Mostly loyal: These are customers that are satisfied but can’t be put in the super loyal categories. They often don’t complain or leave until your competitor offers a better experience. This is why building a friendship like relationship with a customer is important to get them to stay loyal. They often tend to be loyal to the loyalty program but not necessarily to the brand. They like a few brands they feel benefit them and usually stick to them.
  3. Changing loyalty: They switch between brands, trying to find what they like best. These customers usually enjoy convenience. They might come to you because of your location or other conveniences. Usually, brands can convert them into being loyal to your brand if you give them a good enough reason to do so, like by putting extra effort into making them feel valued throughout the sales process.
  4. Not loyal: They don’t necessarily care about the brand, they just want the cheapest or best thing they can find with their convenience.

Brand loyalty has many benefits: 

  1. It helps a brand stand out from the others.
  2. Happy customers spread good words about the brand.
  3. Loyal customers might pay more because they love the brand.
  4. It’s cheaper to keep customers than to find new ones.
  5. Other products from the same brand become popular with loyal customers.

But there can be downsides too: 

  1. Sometimes, companies get too confident and stop making their products as good as they used to be. This can be improved by staying consistent.
  2. Customers might miss out on better, cheaper products because they only want to buy from their favourite brand.
  3. Companies with very loyal customers might not be held responsible for their mistakes.

Brand loyalty is a big part of how businesses sell their products. It’s the emotional bond customers develop with a brand, making them feel valued, safe and respected. This loyalty doesn’t come fast, it takes time to build and once you have been able to build it, it will last and will be worth the effort. Brand loyalty Is nurtured over time through consistent, positive experiences. A brand earns this trust by delivering quality products, providing excellent customer service, before, during and after sales as well as engaging in the customer in a way that resonates on a personal level what includes remembering your name and your story each time you meet including the issues the customer has had before and how to personalize their experiences to their current needs. Sometimes, this relationship is strengthened by shared values or beliefs. Talking with your customer like you have been friends for a long time will build trust and the customer will feel comfortable sharing things about their personal lives what can help you cater to their needs better. Brands that stand for something beyond their products, that contribute to the community, or take a stand on issues can create deep connections with their customers, forming a bond that’s not just about what they sell, but what they stand for. Rewards and recognition also play a big role in keeping the customer and brand relationship alive. Brands use loyalty programs to acknowledge and reward their customers’ loyalty to the company, making them feel special and appreciated for their ongoing support. Customer loyalty programs often offer discounts to customers, points to use for future sales with the brand, cashback programs, punch cards, subscription programs and referral programs what attract new customers to the brand. Customers must feel appreciated and even part of the community while supporting a brand. Although brand loyalty is a great tool to achieve success, its much like human relationships, it can be fragile and break at any point. It’s important for brands to understand to be consistent with good quality service not to lose their customers. A single bad experience or a series of small disappointments can weaken the bond, leading customers to drift away and look for other brands, just as friends can drift apart if they feel neglected or taken for granted, brands should understand not to put less effort once gaining a loyal clientele. 

In the end, brand loyalty is about creating a meaningful, ongoing relationship that makes customers feel like they’re part of something bigger than just sales and building the brand. It’s about creating a story together that they love to tell and be a part of much like the stories that we have through long, enduring friendships. It’s all about making customers happy, creating a trustworthy image and working with passion and having customer serves with special expertise so that the clients keep coming back and telling others about their good experiences with the company. 

 

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/17643-brand-loyalty.html 

https://www.youtube.com/watch?v=Krg4zrGC97Y 

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