Strong Customer Loyalty And Powerful Brand Value: Are These Really Inter-Dependent?
The relation between your customer and your brand is a powerful bond that establishes your brand quality and your customer’s trust on it. Every marketer is always on the lookout for establishing a strong customer loyalty that would create a long term customer. Loyal customers tend to make frequent purchases from your brand creating a brand value in the market.
Strong customer loyalty and engagement also help in the generation of new customers through word-of-mouth promotion. Thus, founding a strong customer base by promoting brand value can be great for your business in the long run.
Brands that regularly work on improving customer engagement tend to have a higher return on investment and an increase in sales than brands that do not work on customer loyalty and engagement.
Why work on customer loyalty?
Apart from the fact that a strong customer loyalty improves the engagement of the customers, there are multiple other benefits of establishing customer loyalty through brand value.
Generation of new customers
One of the most definitive features of developing a strong customer loyalty is the generation of new customers. Customer engagement can start from any digital media platforms or through word-of-mouth promotion. However, once you have a customer purchase your product, it is up to you to retain him/her and make the individual return to your website again and again.
Peer recommendation forms a major part of customer generation process. A single satisfied customer has the power to generate 10 new customers through various channels and medium. A study conducted by B2B Buyer’s survey report states that around 20% of first time buyers tend to take in peer recommendation before making a purchase.
Thus, creating a group of loyal customers for your brand not only ensures you regular buyers but also gives you a powerful marketing channel to generate new customers.
Improving business objectives
When you have a set of customers who keep returning to your brand and make frequent purchases, it means they are satisfied with your product. It means that your brand is on the way of getting strong customer loyalty. However, retaining these loyal customer who put great emphasis on your brand value is important. While you may find your customers returning to your brand, you should also give them a reason to return back. You can provide your returning customers with additional benefits and perks like offers and discounts on their repeat purchases. This calls for improving your overall business objectives.
Once you perceive a strong customer loyalty for your brand, you need to provide value added services to them to keep them returning back. This also requires you to improve your overall business objectives and quality of your product. Improving your product quality would not only ensure that your present customers stay with you but it also attracts more and more new customers to your business. Competitors are always on the lookout for new customers. A single reason of dissatisfaction can bring down your customer number spiralling down.
Prize of personalization
Personalizing your business in accordance with your customer’s preference and likings is a major booster to establish a strong customer loyalty. Ensure that you provide all the services that your website promises to. Do not let your customers regret the decision of choosing you at any point of time. Make them feel at home and let them feel that choosing your brand was the best decision that they made.
Personalization, however, requires you to have a thorough information about your customers’ activity. You need to assess the likes and preferences of your customers through various search analytics and social activities. The data gathered from these sources can be helpful in creating a personalized business environment that would be favourable for your customers.
After sale services
Strong customer loyalty and good brand value to a great extent depend on the after sale services that you provide to your customers. While a complete sales process ensures that you have a conversion and that you can earn revenue, after sale services ensure that you have your customer return back to you in the future as well. This helps in retaining and increasing your overall customer volume.
After-sales services can include a wide variety of services. It is entirely up to you to decide what after-sales services you wish to provide to your customers. These can include free doorstep delivery, follow-up after sales, acquiring feedbacks and dealing with complaints and other value added services. After-sale services ensure that you create a long term relation with your customer that adds to your business quality.
Perceived quality vs actual quality
Your website and promotional ads give out a certain message and idea about your business and its works. Your customers tend to perceive an idea of their own about your business and product quality through these ads. However, your customer expectations may vary with that of your product output. The difference between perceived quality and actual quality however entirely depends upon your customer’s outlook which may greatly vary from customer to customer. This can be a strong customer loyalty build up factor.
You cannot change the way your customer perceives your product. Thus you need to be extra careful when you promote your product on various digital media platforms. Never promote your product calling it high-end when it is of average quality. Keep it real and what it actually is. False promotion would only hamper your customer build up process.
Ask for referrals
No, asking for referrals does not make you seem desperate. It is simply a part of your business development process. When you have loyal customers who are overwhelmingly satisfied with your product, they will be more than happy to provide you with referrals. These referrals are mostly of customers who are your prospective customers and a little nudge from your end would convert them into actual customers for you. Thus, referrals help in increasing your overall business returns as they help in generating active customers.
However, make sure that you reward your customers who provide you with good referrals. This would further add in more customer generation as you provide such value added services to your loyal customers.
A strong customer loyalty cannot be built in a day. You need to chase your customers and understand them extensively in order to build up a quality business-to-customer relationship. With a genuine brand value and consistent quality of products, you can expect to establish a strong customer loyalty for your business.