brand loyalty is like any other relationship; it’s built on interactions, trust and time. it’s the act of building a loyal relationship with your customers that encourages them to continue purchasing from your company. building a relationship like this can’t be rushed, but it can be extremely beneficial.
research shows the cost of bringing a new customer up to the same level of profitability as an existing one is up to 16 times more. in other words, it pays to focus on brand loyalty and customer retention.
to help small businesses build brand loyalty, here are four steps to follow:
1. understand why loyal customers love you
your repeat customers are the key to unlocking the recipe for your brand loyalty success. there’s a reason these customers keep coming back, and you need to understand what it is. you need specifics so you can build on these traits and use them to convert more customers into repeaters.
to find some answers, consider setting up a focus group. offer your vip customers an incentive to give up 20 minutes of their time to answer a few questions in person. give them a coupon or double points on their purchases for an extended window of time.
create a list of questions that get to the root of their love for your product and brand. here’s a quick list of five questions that should spark some ideas:
- what is it about our product or service that keeps you coming back?
- if a friend were to ask why you shop here, what would you tell them?
- do our prices encourage you to shop here over competitors?
- how does our customer service play into your decision to shop here?
- what can we improve to make your experience even better?
in addition to a focus group, you can send a survey to your customers. if you have customers’ email addresses, use a tool like surveymonkey to create and email a survey that asks customers about their loyalty. if you have phone numbers, consider using a tool like ez texting to send a short text survey.
2. focus on your brand’s mission
when you started your business, you had a mission in mind. this mission takes into account your vision, direction and priorities. it’s not just a tagline, it’s a statement that should shape everything you do.
sometimes, a brand’s mission gets lost in the day-to-day operations of running a business. to build brand loyalty, your mission shouldn’t be forgotten. it’s what sets you apart.
if, for example, your business set out to create the best designer wedding cakes for the everyday bride, than every decision you make should support that mission.
with a clear mission in place, you can incorporate it into your marketing efforts. sixty-four percent of customers say shared values is the reason they chose to shop with a specific brand.
by marketing your mission you will differentiate your business from others, and begin to lay the foundation for customers to support your company.
3. show customers that you care
as competition for customers gets more and more fierce, businesses have to show appreciation for the customers that chose their product.
taking customers for granted is one of the main reasons they decide to switch brands. research shows 68 percent of customers stop shopping with a specific company because they don’t believe the company cares whether or not they shop with them.
translation? say thank you. it doesn’t take much to show your appreciation. consider sending handwritten thank you notes, host a customer appreciation sale or create a loyalty program that consistently rewards customers for their repeat business.
here’s a list of customer appreciation ideas that won’t break the bank.
4. keep customers informed and engaged
considering how connected everyone has become, there’s no excuse not to stay in touch with your customers.
ninety percent of adults have a cell phone, and 44 percent of them take them to bed with them. seventy-seven percent of adults use social networking sites. your audience can be reached easily in today’s digital era.
what should you communicate? customers want to know information that’s relevant to them. news about upcoming sales, changes in your return policy and additional services that are available are great examples.
when you’re communicating with customers, remember to explain why they should care. for instance, a link to an article about your business’s new owner or ceo is informative, but it will actually resonate with readers if you explain how the owner’s new policies will impact customers.
wrap up
building brand loyalty isn’t an overnight accomplishment. it’s a long term commitment to understand your customers and provide the kind of product and service they expect. loyalty is earned, not instantly given. businesses that understand that can use the steps listed above to build brand loyalty.
good job lisa! very helpful.
lisa – please correct your description. someone left out the “a” in the first sentence and it immediately sounds like someone from asia wrote it. lisa is “a” writer at fivestars
fixed! thanks for pointing that out, jim!
jim- you’re remark about sounds like someone from sia; could be offensive to some. ***correction. asia. (i forgot an “a” too.) just kidding. ?
plus there are bigger problems to worry about than one little letter. for example: my punctuation. 😛