Sunday, September 26, 2010

How businesses benefit when customers commit to brand loyalty

Brand loyalty, an odd and often unfamiliar term for many businesses, stretches your business well beyond the basic limits and reaches your market and community in ways you never imagines; the following are benefits when customers commit to brand loyalty.
* Increase the life-time value of customers *
Return on investment is often a term thrown by many marketers but what does it really mean, especially in the long-run? The ROI of a brand loyal customer is hard to gauge because the longer a customer holds onto your brand - the higher their value and investment.
A brand loyal customer that stays with your business for many years will be the ones that not only improve your bottom-line but cover the initial customer acquisition cost. The cost of obtaining a customer can be very expensive depending on the market; those customers that stay loyal to your brand pay for themselves after each additional sale - if this goes on for years, you'll operate a very successful business.
* Brand loyal customers become buzz agents *
Those customers that feel passion behind your brand are the same ones that will promote it every day and defend it to the bone. A common example of customers becoming buzz agents can be seen with Apple. Apple fanatics will go to great lengths to stay on top of current business events, tell everyone they can find and will quickly defend the brand when others attack it.
If you can create the same community with your business, you'll create a marketing message out of those that follow you. Of course when your customers become buzz agents they do completely trust you so do everything you can to keep that bond alive.
* Increase your overall sales per customer *
A customer who dedicates their business to yours is more likely to invest more money. Likewise, brand loyal customers will be the first ones to tell friends and family about their experiences which, when they join the sales funnel, are more likely to buy more frequently than those that jump on board at random.
Your most dear customers are the ones that will propel your business to new levels as your base continues to grow and allows you to expand into areas you never thought possible.
* Discover powerful market research *
Finally, businesses benefit greatly from customers that are brand loyal within their market research. Asking your customers what products and services they want may seem like a no-brainer but the ones that know best are those that are hardcore for standing behind you.
It's your duty, as a business, to never alienate your existing customer base - these are the ones that built you, these are the ones that will continue to support you as you grow. Your market research will be jam-packed with valuable information as long as you take the time to ask.

No comments:

Post a Comment