If you are a business owner or marketer, you should be familiar with terms such as churn, retention, and conversion rate. During the past decade, marketing and brand loyalty have become increasingly difficult since social media has given consumers a megaphone which has proved to be even more powerful than traditional marketing. One of the most successful viral campaigns is the ALS Challenge, with more than $100 million dollars raised in a 30 days period – between July 29 to August 29, 2015.
According to the Teradata 2015 Global Data-Driven Marketing survey, 38% of marketers say that their biggest 2015 challenge was improving customer acquisition and retention. Companies struggle with customer retention due to the increasingly competitive landscape.
Customer loyalty is a tendency to favor one brand over all others – whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand. Customer loyalty encourages consumers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience. It also is helping attract consumers to familiar brands in the face of a competitive environment.
What are the advantages for a company of having a loyal customer?
- A brand loyalist stays true to the brand – they do not enjoy polyamorous relationships with multiple brands.
- A brand loyalist has a high level of abstinence, they are more likely to forgo making a purchase if their preferred brand is not available.
- A brand loyalist can sustain both micro and macro environmental factor.
Customer loyalty is arguably the most important factor in business today. Not only will it bring repeat business, but also translate to more opportunities via word of mouth as well as brand mulligans for those little hiccups that occur every now and again. But how to build that unique relationship?