In marketing, brand loyalty is the golden ring for which everyone strives. However, attaining and holding onto the loyalty of consumers is very difficult, and only a few will succeed. It takes more than luck to bring success; it requires skill to understand consumer needs and determination in precise communication that a product will deliver on those needs.
Brand loyalty is still underrated. A lot of marketeers envision growing their products by increasing penetration. But that may come at eroded prices as more and more price sensitive consumers are lured in with promotions. Have a look at using the concept of brand loyalty and how it can improve profitablity.
There are a lot of digital tools to drive loyalty, but I want to illustrate the above with a location-based service, group discount sites and Facebook. Check-in sites like Foursquare’s have the ability to create brand loyalty but are falling short by not offering consumers any real value. The problem with the Mayorship paradigm is that it rewards a select few and does not offer enough So What?
Group buying sites like Groupon offer consumers real values as they clearly play on the left side of the above graph. So good luck with building brand loyalty using Groupon. Facebook on the other hand is build to generate a loyal fan base. It starts with liking a brand, then following the brand newsfeed to participating to surveys and questions. In the end, when it comes to creating brand loyalty, the emphasis must be on creative engagement and interaction to ensure long-lasting customer relationships.
In technology, loyalty is shifting into an ecosystem adoption where once locked in, there is an increasing level of stickiness.
I stumbled upon this video, which introduces an interesting perspective on the relationship between high involvement products and brand loyalty. Love to hear what you think?
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