December 22, 2015
More and more companies are beginning to incorporate strategies for creating brand loyalty into their marketing plans. Here are some statistics that underscore why brand loyalty is so important:
- It costs five to 10 times as much to recruit a new customer as it does to keep an old one
- 65% of a company’s business comes from current customers, not new ones
- Repeat customers spend, on average, 67% more with your company than new ones do
Once you’re recruited customers, how do you keep them? Even better, how can you turn them into brand advocates and evangelists – people who will refer their friends and family to you and stand up for you when times are tough?
It all begins with brand loyalty. Here are six steps for creating it.
Gain consumers’ trust by delivering what you promise, maintaining quality control over your products, and never putting anything that could harm someone online or on stores shelves. Brands that have built a reputation for being trustworthy have existed longer than many of their competitors.
Do the right thing
Corporate social responsibility is a big deal these days. Consumers want to know that companies are doing more than pursuing profits. They expects brands to give back to their community, treat their employees well, be kind of the planet, and not steal, cheat or lie.
Find ways for your corporation to give back. Your giving could be as small as donating products to school and charity auctions (which is a great way to advertise, by the way) or making major cash donations to causes employees care about. Once you’ve done something altruistic, publicize it (in a way that doesn’t seem like tooting your own horn, of course). If consumers can see you care, they’re more likely to be loyal to your brand.
Engage in two-way communication
Gone are the days when companies showed advertisements and information to consumers and expected them to respond. Today’s shopper expects two-way communication with companies. If they get a faulty product or receive poor service, they want to the company to respond and make things right. They enjoy getting “behind the scenes” or “insider” looks at what’s happening with their favorite brands. They enjoy feeling like they have input on new products or services.
Social media is a big part of this trend, and it presents a good opportunity for companies looking to create brand loyalty. Use Facebook, Twitter, Google+, Instagram and other social media platforms to talk with consumers and listen to what they’re saying. Read up on best practices for keeping your fans and followers engaged. You might even look into some type of rewards program for consumers who advocate for you and your company on social media. All of these things will make people feel more connected to the people in your company – and therefore, the company itself.
Give consumers something valuable
Consumers love feeling like they’re getting something of value. So give it to them – even if it’s just a little something.
Experiential marketing campaigns are a great way to hand out samples of new or existing products, or distribute branded materials such as hats or sweatshirts with your logo. You can also use experiential marketing events to give away things like discount coupons or special deals for consumers. Most consumers consider saving money on something they want nearly as good as getting something for free.
Experiential marketing is also a great way to build brand loyalty because it gives consumers a positive way to learn about your brand. By experiencing your company and its products with physical senses such as taste, smell or touch, people are more likely to form a good association with your brand. If you can create a connection between your products/services and something the person cares about, such as a person or a charitable cause, that’s all the better for building brand loyalty.
Are you curious about other ways experiential marketing can help you create brand loyalty? Give Factory 360 a call today. Our experienced team is happy to walk you through the many ways experiential marketing can help your brand – and the many ways we can help you surpass your goals.