This is a Marketing 101 concept, and a lot of brands focus on this.
Brand Loyalty is a measure of how frequently, and in what quantity consumers purchase the products a brand has to offer, with one eye on how long they have been following this pattern. Consumers who purchase more frequently and continue to do so over a period of time are the loyal customers. Brands feel that these loyal customers are essential to their progress. They believe that these are the customers that are willing to try new products the brand introduces, pay more than the other non-loyal customers for their products and act as advocates of the brand while talking about it to others.
This article [PDF] will paint a clearer picture with numbers from research studies as to how this belief about Brand Loyalty and the importance of loyal customers to a brand is not as it is made out to be.
I feel that Brand Loyalty is being looked at the wrong way. The so-called loyal customers are not meek slaves of the brand who will accept anything that is thrown at them by the brand. They just happen to like the current offerings of the brand at the period in time under consideration. Instead of trying to extrapolate this historical data about the consumer that is termed Brand Loyalty, brands should be looking to understand what has been driving the behaviour of this customer and how foreseeable changes in his environment might affect his association with the products the brand offers.
Brand Loyalty must be turned on its head.
Brand Loyalty should cease to be about extrapolating historical data about consumers who have had a long association with the brand. Instead, Brand Loyalty must be about brands being loyal to the customers who have had a long association with the brand. The brand must be proactive and anticipate any changes in the customer's purchase patterns and provide him a modified/new solution that will prevent him from discontinuing his relationship with the brand.
This is nothing new. Most B2B relationships are dealt with in this manner. It is easier in B2B cases as the Relationship Manager has a handful of clients that he's responsible for. But, we now have enough technological assistance to adopt the same model in the B2C scenario as well.
We just need to go ahead and do it.
Brand Loyalty is a measure of how frequently, and in what quantity consumers purchase the products a brand has to offer, with one eye on how long they have been following this pattern. Consumers who purchase more frequently and continue to do so over a period of time are the loyal customers. Brands feel that these loyal customers are essential to their progress. They believe that these are the customers that are willing to try new products the brand introduces, pay more than the other non-loyal customers for their products and act as advocates of the brand while talking about it to others.
This article [PDF] will paint a clearer picture with numbers from research studies as to how this belief about Brand Loyalty and the importance of loyal customers to a brand is not as it is made out to be.
I feel that Brand Loyalty is being looked at the wrong way. The so-called loyal customers are not meek slaves of the brand who will accept anything that is thrown at them by the brand. They just happen to like the current offerings of the brand at the period in time under consideration. Instead of trying to extrapolate this historical data about the consumer that is termed Brand Loyalty, brands should be looking to understand what has been driving the behaviour of this customer and how foreseeable changes in his environment might affect his association with the products the brand offers.
Brand Loyalty must be turned on its head.
Brand Loyalty should cease to be about extrapolating historical data about consumers who have had a long association with the brand. Instead, Brand Loyalty must be about brands being loyal to the customers who have had a long association with the brand. The brand must be proactive and anticipate any changes in the customer's purchase patterns and provide him a modified/new solution that will prevent him from discontinuing his relationship with the brand.
This is nothing new. Most B2B relationships are dealt with in this manner. It is easier in B2B cases as the Relationship Manager has a handful of clients that he's responsible for. But, we now have enough technological assistance to adopt the same model in the B2C scenario as well.
We just need to go ahead and do it.
CONVERSATION