Why do people buy Heinz® ketchup, Apple® smartphones or Kleenex® tissues over other brands?
Branding.
It’s one thing to be able to sell someone a product or service once. But to get them to be loyal to your brand above all others — that’s a whole different ball game.
And it’s harder now than ever before. In an age where disinformation is easy, consumers are more skeptical of brands. Let’s go through how you can still build brand loyalty in a cynical world.
What Is Brand Loyalty?
Simply put, brand loyalty is someone’s willingness to buy a product or service over competitors regardless of other factors like price, quality or convenience.
For example: I love cocktails (as you know if you’ve been reading my work for any length of time). I buy my cocktail books and supplies at a friend’s shop, not at the bookstore or on Amazon. It’s more expensive, but the shop has earned my loyalty because of the employees’ knowledge, their willingness to go above and beyond and the quality and selection they offer.
Brand loyalty comes from trust: trust that you’ll offer a good product or service, that you’ll take care of your customers, and that you know what you’re talking about.
Why Does Brand Loyalty Matter So Much?
A loyal audience is made up of repeat customers. According to SEMRush , you have a 60-70% chance of selling to someone who’s already been your customer, whereas conversion rates for prospects are between 5 and 20%. And repeat customers spend 67% more than new customers.
Loyalty also insulates you from change. If customers are only buying because you’re cheapest, closest or easiest … what happens when that isn’t true anymore? (And it will happen eventually.) Customers who are loyal to you will stick with you even if someone else undercuts your price or sets up shop closer.
There is also an intangible benefit beyond just making the cash register ring. Loyal customers are more likely to spread the word about your brand. Just ask Apple. Its groundbreaking “evangelist” program with Guy Kawasaki paved the way for its incredible success. Kawasaki was the first “official” evangelist (and Steve Jobs after his return could probably be called one too), but Apple’s passionate early adopters also evangelized for products like the iPhone, iPad and iPod. Most people don’t convert until they’ve had several touches; letting your customer base do some of the work for you can speed up that process.
Brand Cynicism: Your Biggest Obstacle
Companies know how powerful brand loyalty is, and as with any business advantage, there are people who will try to “game the system.”
We’re in an era of brand cynicism.
In some ways it’s easier to build brand loyalty than it used to be — we have more ways to reach people and unprecedented access to tools and technology to improve the customer experience. “Better, faster and cheaper” is possible to a degree never before seen.
At the same time, there’s a “signal vs. noise” issue. Your message can get drowned out in the flood of information your customers have coming at them every day. And when everyone’s talking about “integrity,” claiming to be the best and telling them they’re the option they should use, your customers eventually tune out. They stop believing what brands tell them, even if it’s true.
For example, over two-thirds of consumers want brands to take a stand on social issues. But even more believe that brands only do that to further the bottom line, not out of any sense of purpose. Over half of global consumers don’t believe brands’ sustainability efforts are real. There’s a deep cynicism over any brand’s willingness to do anything that doesn’t immediately benefit itself.
If you want to build brand loyalty, your customers have to know you care. So how do you differentiate yourself and break through that cynicism?
How to Build Brand Loyalty in a Cynical World
Building brand loyalty is tough at the best of times. But there are a handful of retailers who’ve done it for years, no matter how difficult the economic times.
Sweetwater Sound is one of a few online sellers that was founded before the dotcom boom and bust and still remains relevant. That’s tough, especially in a world where you can get just about anything through Amazon — but Sweetwater has created an unusual amount of brand loyalty with its customer base.
Sweetwater’s approach during COVID is a master class in how to cultivate brand loyalty:
- Create surprise and delight. It’s not enough to just give people what they need. You have to give people what they want, before they have to ask for it. Sweetwater did this in their COVID response. They have dedicated salespeople who reach out to their customers regularly, but during the COVID pandemic, these salespeople had a different task. CEO Chuck Surack told the sales crew to just call and ask people “How are you holding up?” Sweetwater’s sales exploded over the pandemic.
- Follow through. When you say you’ll do something, do it. Sweetwater had to deal with an explosion in demand at the same time as they were practicing social distancing and running limited shifts in the warehouse. They promised a short delivery time and needed extra help to make that happen. The CEO, his family, and other upper management worked in the warehouse to make sure orders went out on time.
- Show a bit of the mess. Every business has mess, and usually we try to hide it. Authenticity matters more than it ever has; show your audience a little of the process and they’ll empathize with you. Sweetwater publicized several interviews with its CEO Chuck Surack going through the issues they had and how they addressed them. Surack was straightforward about the difficulties he’d had: “I was running from about 4:30 in the morning to 9 or 10 at night in the distribution center, along with other members of our leadership team … My feet and my back hurt, and my hands were cut up from using a utility knife. It’s given me an amazing respect for the people who do it for us every day.”
Loyalty Matters
Brand loyalty is critical to your business. It’s a powerful tool for revenue and reputation. But businesses know this, and they’ve taken advantage, which has made consumers cynical. You have to break through that wall.
Use these tips to stand out from the pack, grow your business and build a strong customer base. Not sure how to do it? We can help. Just drop us a line, anytime.
Best Regards,
David Brandon
Copywriter
Rainmaker Digital Services