What is brand loyalty and why is it important to a business?

Growing a business is impossible without customers or clients, and it’s something which is constantly on an entrepreneur’s mind, how to get new customers to bring in the money. But how many of us forget to think about the customers we already have?

It’s easier to sell a product to an existing customer than trying to tempt a new customer away from a competitor. And in terms of numbers, it’s cheaper! It doesn’t cost as much to market to existing customers, you just have to demonstrate that you care about them, keep in regular contact with them, give them incentives to buy from you again.

So this blog is all about brand loyalty – trying to get a customer or client to remain with you forever and consistently choosing you over a competitor.

Customers stay with a certain brand because they think that it’s better than anyone else’s, because it’s cheaper or better quality, tastes nicer, or better customer service, etc.

With new customers, however, you first have to convince them that your product is better than the others before being able to sell to them. That’s a tougher job, and costlier in terms of promotion, advertising and marketing. Typically, it costs four to six times as much to attract a new customer than it does to retain an existing one.

You’re likely to make more money from existing customers. If you sell additional products to them, you can potentially charge more than you would a new customer. Why? As customers get to know a brand, they’ll understand the value of what you do, and they’ll be willing to pay more to stay with what they know and like rather than having to change.

Also, people will also recommend you to others. You’ve probably done it yourself, right? If family or friends are looking for suggestions for a particular salon or plumber, you’re likely to recommend someone that you’ve used and have been happy with. You’ve got a new customer without having to do anything! Nice!

So how do companies create brand loyalty? It’s all about creating habit. Customers will come back because it’s what they’re used to. They’re comfortable with your brand and are confident of the service they’ll receive.

The key is to understand what your customer wants and give it to them. To do this successfully you should focus a lot of effort, time, marketing and business development on existing customers in addition to driving new sales. Here are some tips to help you build brand loyalty:

● Listen to your customers. Seems obvious, right? But you’d be surprised how many businesses get this wrong. Your business should be customer-focused rather than sales-focused. Show that you care about them, and they will start to develop a real affinity to your brand
● Learn to understand who they are. Knowing what makes your customers tick, what they think about and how they feel will enable you to adapt your offering to suit. How should you do this? Ask them for their opinions, read their feedback about you, talk to them. Then act on it. Show that you are taking their opinions seriously and are responding in return
● Find out what it is that your customers love about you. Why did/do they choose you over a competitor? What attracted them to you? What could potentially drive them away? Knowing this will help you to do more of what you’re good at to keep your customers satisfied and ensure they’re not tempted to try someone else in the market
● Make them feel valued. Some companies really annoy the hell out of existing customers by giving all the best deals to new ones, making them feel like they are second best; that once they’re in the fold, it’s taken for granted that they’ll stay there. And that only serves to encourage them to leave
● Give your customers no reason to leave you. Find ways to make your customers’ lives easier and their experience dealing with you a pleasure. Haven’t you often heard people say something like ‘I just love going to X to get my hair done, they make me feel so welcome and they’re always so interested in what I’m up to’? Create that experience for them, and they’ll want to keep coming back
● Do the unexpected. Make your customers say ‘wow’! Free, surprise offers, gifts, all work well. There are some whisky companies, for example, that offer customers the chance to visit the distillery and share a drink with them. Now how many companies do that? (you can come over for a cuppa, how about that?!)

Focus on doing what you do best, what your brand is known for, and deliver on your promises. It’s a sure fire way to creating loyal customers. Making your customers the core of your business, understanding their needs and wants and treating each individual like they are the most important person to your business, and you’ll create a loyal army of brand fans.