The Positive Effect of Customer Loyalty Towards Brand Equity
The million-dollar question every business should ask is, which customer types deserve the most attention, new or existing customers?
Well, the answer is both. However, there is another type that most businesses usually ignore, and this is the returning customer. These kinds of customers are those who have bought your product or service once before and have returned to make another purchase. These customers are secured in a sense and require little cost in comparison to acquiring new once unaware of your brand.
In this article, you will learn why investing in customer loyalty towards your brand equity is a strong decision for your business.
Many businesses prioritize their efforts in various endeavours such as new user acquisition strategy an investing heavily in marketing channels but not in a proper customer loyalty solution.
This mindset for a business will lead to negative user experience over time and will result in customers leaning towards the competition and eventually leaving your brand. Companies with this approach ignore the potential benefits of fostering customer loyalty towards your brand. Businesses that operate in such ways, can potentially lose money due to failed efforts of conducting expensive advertising schemes. These businesses usually suffer from highly volatile customer retention rate and will most likely continue in this pattern indefinitely without learning from this dire experience.
Strategies for Customer Loyalty Towards Brand Equity
Strategies to encourage customer loyalty towards your brand and building up your brand equity can take many forms. Give them discounts and promo codes, provide additional assistance to your customers, or offer limited access information to loyalty program members. Essentially, you must find a way to make your customers feel special. Creating this foundation between yourself and your customers will push their thoughts and inclinations towards your brand in their next time of need.
Studies show the positive effect of customer loyalty towards a brand and its brand equity. Loyalty programs incentivize repeated behaviour. A loyalty program should complement customer needs in relation to the goods or services you provide as a business. The effects of well-planned loyalty programs will result in high customer retention rates and will help your business in the longterm.
By implementing a loyalty program, you decrease customer volatility. In other words, your incentive holds their attention and stops them from exploring other brands. Importantly, loyalty programs are more effective than wasteful than traditional advertising campaigns. Rather than offering coupons and discounts with costly ads, registering your customers for a loyalty program establishes an emotional relationship between the customers and the brand.
Strategizing Your Loyalty Program to Increase Business
When trying to establish loyalty with returning or existing customers, the old adage “out with the old, in with the new” does not apply. In fact, your mindset should focus on the patterns and behaviours of your old customers. Taking time to learn about your customers helps with both their individual and collective future satisfaction. Also, various case studies show what are the “wants”, the “needs” and preferences of customers in general. The knowledge you gain from loyal customers will help you understand the marketability of your product and brand, as well as how to market your product to unfamiliar, new customers.
Some of the world’s most successful companies implemented impressive customer loyalty programs. For example, Jeff Bezos, CEO of Amazon, was early to understand the importance of customer-first business techniques. Bezos directed his product towards customer experience over company and shareholder assets, and the outcome is remarkable. Today, Amazon is a major global power and a role-model for customer retention.
Reward Your Customers, Make Them Want to Return
It’s time to reward your loyal customers. Take your service to the next level with a loyalty program that enhances customer experience and boosts business. Your loyalty program will draw customers from other brands and secure those you already attracted in the past. It’s always a safe option to reinvest in your loyal customer base.
