We’ve all heard or read how important brand and customer loyalty is to a business – there aren’t many business professionals who will argue against that!
However there are some organisations that don’t measure or understand these. Across all sectors, whether you are large or small, a business-to-business (B2B) or business-to-consumer (B2C) provider, insight into your customer and brand loyalty will provide you with a competitive edge and add huge value to your organisation.
Here are our top five reasons why you should measure and gain insight into your organisation’s brand loyalty:
- It saves money in the long run – If an organisation has low brand loyalty, it has to work harder at finding new business to replace what it is losing, and therefore must spend more to achieve this. Gaining a thorough understanding of loyalty allows organisations to put the right strategies in place to retain customers.
- Smarter marketing – There will be a number of factors that attribute to the way your customers feel about your brand. Identifying what these factors are allows you to focus on and ultimately influence these in a positive way.
- Higher customer lifetime value – The higher the brand loyalty an organisation has, the higher the value of its customers, with customers staying with them and spending more over time.
- Higher profits – If a brand has higher loyalty, price sensitivity decreases and willingness to pay increases. Gaining an understanding of this could be an opportunity to review prices to fit with loyalty levels to get the most from the brand value.
- Increases new business – Loyal customers are a great sales and marketing channel. We all know the power of social media and word of mouth marketing, and an individual who is loyal to a brand will have a higher propensity to recommend it to friends and family. Finding out who these customers are and how to influence these groups to your organisation’s advantage will provide a powerful source of new business.
Having an understanding of your current levels of brand and customer loyalty and what influences these factors can be achieved using all sorts of research methodologies.