With the changing time and the business dynamics, customer’s loyalty towards a brand is shifting very much as well. This is making business task to retain customer difficult and thus to maintain brand loyalty harder. However, no matter how difficult it is to retain existing customers if a business can do that, they can keep up with their growth and can take a lead towards beating the competition (van der Westhuizen, 2018). Brand loyalty in the current age and time is of a lot more significance/importance than it was 10-15 years ago. To back the statement, the following discussion post includes three of the key personal discovery in the paragraphs to follow.
Firstly, the importance of repeat customer is higher with business spending a lot to acquire new customers at the current time. If you’re a business with an online presence and have an e-commerce website selling stuff, the new customers won’t be aware about the level of trustworthiness or quality and thus hesitates to make any purchase however ones that already have ordered one or more time will have a feeling towards you and would order with more confidence. This is similar to any other business model as well (Alexander, 2012). A business has a 60-70% chance of selling to the existing customer with just minimum percentage to new customers who have not bought from you. So, it’s even more important to retain existing customers.
Secondly, word-of-mouth counts a lot in selling a product or service. And, who more is likely to recommend your service than your trusted loyal customers. When someone close to you recommends something to you, no matter if that’s of your interest or not, you’ll certainly check it and will be inclined towards buying it as well. According to a survey by Neilsen, 92% of shoppers trusted word-of-mouth referrals and recommendations from family and friends over all other sources of product information like advertisements. This thus acts like the best advertisement and won’t cost a dime to the business to acquire some new customer who will be more so associated with the brand already (“Demystifying word-of-mouth marketing”, 2012).
Finally, a business can make changes to the product size/volume (like decreasing it) or increase the price and even then the customers will manage their budget accordingly and stick with the brand. Like a person loyal towards "Sprite” as cold drinks won’t move to "Thumbs up” just because "Thumbs up” provides some added benefits. In addition to that, it also allows a business to provide some substandard product and the customer is more likely to buy that product without breaking his/her habits. That just helps increase the overall sells value of the business while also keeping the customer acquisition cost to low.
In conclusion, brand loyalty is an important factor today than it was ever before as the acquisition cost of the consumers are a lot higher in the current trend. With brand loyalty, a business can leverage the most to maximize the sells to their existing customer, make use of word-of-mouth sells tactics and make changes to a product or add the substandard product which loyal customers will still purchase.
References
Alexander, M. (2012). Delight the Customer: A Predictive Model for Repeat Purchase Behavior. Journal Of Relationship Marketing , 11 (2), 116-123. doi: 10.1080/15332667.2012.682329
van der Westhuizen, L. (2018). Brand loyalty: exploring self-brand connection and brand experience. Journal Of Product & Brand Management , 27 (2), 172-184. doi: 10.1108/jpbm-07-2016-1281
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With the changing time and the business dynamics, customer’s loyalty towards a brand is shifting very much as well. This is making business task to retain customer difficult and thus to maintain brand loyalty harder. However, no matter how difficult it is to retain existing customers if a business can do that, they can keep up with their growth and can take a lead towards beating the competition (van der Westhuizen, 2018). Brand loyalty in the current age and time is of a lot more significance/importance than it was 10-15 years ago. To back the statement, the following discussion post includes three of the key personal discovery in the paragraphs to follow.
Firstly, the importance of repeat customer is higher with business spending a lot to acquire new customers at the current time. If you’re a business with an online presence and have an e-commerce website selling stuff, the new customers won’t be aware about the level of trustworthiness or quality and thus hesitates to make any purchase however ones that already have ordered one or more time will have a feeling towards you and would order with more confidence. This is similar to any other business model as well (Alexander, 2012). A business has a 60-70% chance of selling to the existing customer with just minimum percentage to new customers who have not bought from you. So, it’s even more important to retain existing customers.
Secondly, word-of-mouth counts a lot in selling a product or service. And, who more is likely to recommend your service than your trusted loyal customers. When someone close to you recommends something to you, no matter if that’s of your interest or not, you’ll certainly check it and will be inclined towards buying it as well. According to a survey by Neilsen, 92% of shoppers trusted word-of-mouth referrals and recommendations from family and friends over all other sources of product information like advertisements. This thus acts like the best advertisement and won’t cost a dime to the business to acquire some new customer who will be more so associated with the brand already (“Demystifying word-of-mouth marketing”, 2012).
Finally, a business can make changes to the product size/volume (like decreasing it) or increase the price and even then the customers will manage their budget accordingly and stick with the brand. Like a person loyal towards "Sprite” as cold drinks won’t move to "Thumbs up” just because "Thumbs up” provides some added benefits. In addition to that, it also allows a business to provide some substandard product and the customer is more likely to buy that product without breaking his/her habits. That just helps increase the overall sells value of the business while also keeping the customer acquisition cost to low.
In conclusion, brand loyalty is an important factor today than it was ever before as the acquisition cost of the consumers are a lot higher in the current trend. With brand loyalty, a business can leverage the most to maximize the sells to their existing customer, make use of word-of-mouth sells tactics and make changes to a product or add the substandard product which loyal customers will still purchase.
References
Alexander, M. (2012). Delight the Customer: A Predictive Model for Repeat Purchase Behavior. Journal Of Relationship Marketing , 11 (2), 116-123. doi: 10.1080/15332667.2012.682329
Demystifying word-of-mouth marketing. (2012). Leader To Leader , 2012 (64), 65-66. doi: 10.1002/ltl.20026
van der Westhuizen, L. (2018). Brand loyalty: exploring self-brand connection and brand experience. Journal Of Product & Brand Management , 27 (2), 172-184. doi: 10.1108/jpbm-07-2016-1281