In this era of modernization, customer loyalty and brand loyalty matter the most to the business organizations.
Nowadays, brands are more into driving loyalty programs than ever before. And, there is only one reason why companies are more likely to spend a lot on running such loyalty programs – customer retention, customer satisfaction, and revenue growth!
Why customer loyalty and brand loyalty are needed for a business to succeed?
Brand loyalty and customer loyalty – these two terms are interrelated with having a subtle difference.
Without a loyal customer, the brand seems unable to succeed. This is because; the brand could grow if they are being given a chance to give excellent customer service, and thereby getting repeat businesses. Also, the brand name is being spread all over especially through word of mouth.
Loyalty is not just a program; it’s an investment that benefits the company in terms of building loyal customer-base. Customer loyalty represents the way the customer contributes to regular shopping, enhancing the brand name in the market.
On the contrary, brand loyalty reflects the way a customer perceives the brand and sticks to one brand without thinking to try other brands.
Both, customer loyalty and brand loyalty can generate more revenue for a business. Let’s find out how:
Boost repeat purchases
As we all know, ‘the first impression is the last’ – the statement is crucial while defining the brand name and values.
If a customer has received overwhelming products or service , he/she will definitely come over again to that particular brand. The loyal customers never stay stagnant in his/her buying behavior from the same brand. The customer always tends to buy the stuff by making repeat purchases.
Enhance customer acquisition and retention
Loyalty programs give more reasons to understand customers’ interest and chances to cater to their preferences completely. While other brands might overlook the vital points, that’s where you need to take the initiative and establish your brand.
The brand should focus to target the customers’ choice in accordance with their buying persona. This would help in customer retention, because there are various levels of a customer – the one who is buying $$$ and the one who is buying a little every month but the buying behavior shows that the purchasing is constant.
According to the research – customer loyalty programs boost the revenue by 25 – 95 percent and also enhance customer retention.
Accelerate business growth
Only promoting your brand on social media platforms would not fetch you enough customers. However, accelerating business growth by having loyal customers who are fond of your products and services can contribute a lot.
Generally, brands carry a myth that more the customers, more would be the revenue. Whereas, the truth is, most of the revenue comes from the existing customers compared to new customer-base.
In one of the researches by Accenture, it has been found that nearly 60 percent people – almost more than half of the customers who are loyal to one brand – actively support and recommend the brand to others.
Establish the brand
It’s not only the product that enhances your value in the market. A customer-centric approach to selling your products and extending a magnificent customer service can do a lot.
Your brand is the base where your product cum services would make the real-time world to millions of people. Your aim to establish the brand name through services and product-selling can help you reach the heights of success and in generating revenue.
Implementation of an effective loyalty program
Well, these days people are not much fond of just taking discounts in their kitty.
In the modern era of marketing tactics, loyalty programs have taken the space to attract existing customers. By introducing a customer-enriched loyalty program, you can turn your customers into your lifelong fans who will generally not switch to other brands.
The condition is – your loyalty program should be well-designed, adaptable, easy-to-go, well implemented, and should favor the interests of the customers.
To Wrap Up
A bit of mind-work, a well-planned strategy to implement is the key to create customer loyalty. And the customers will be the people who can help you generate revenue for your business through repeat purchases. One of the most prominent customer engagement platforms is Nextbee, a tailor-made solution for those businesses who are willing to invest a little time for their customers to generate brand loyalty.