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In marketing, a traditional rule of thumb is that it typically costs around five times as much to acquire a new customer as it does to keep an existing one. Better analytics, tools, and business models have helped businesses lower these costs, but the price could be even higher depending on your industry and specific circumstances. Long-term customer loyalty is essential to ensuring the financial stability of your business. Relying on tactics like rewards programs, which attract people better initially, is not enough to achieve this goal, and successful businesses tend to tap into the same three relationship elements.
Related: 5 Ways To Build Loyalty To A High-Value Brand
1. Communicating Your Worth
The value of a product or service does not necessarily correlate with its price i.e. you have to look at what the product or service changes in the life of the customer. For example, maybe the value saves the customer time, and the customer is willing to pay more for it. A product or service can have multiple values, but it must be clear regardless of the value.
A good example here is Apple. This company is known to have a catalog of relatively expensive products. But Apple customers are looking for items that help them reliably innovate – that ability to create efficiently and easily is the point of value. Their products might not be the “best†when you compare them to other options in different ways, but Apple is very clear on how the intuitive design, sleek simplicity, and interconnection of their products help customers. customers to achieve this innovation goal. Because messaging is so clear, and because other companies don’t communicate the same, Apple customers remain convinced that Apple is the only company that can deliver what they want.
Related: 4 Ways To Build Brand Loyalty As The Economy Reopens
2. Communicate your why
Your “why” refers to why you are making your product or offering your service. It connects to the core beliefs of your business and paints a picture of how you want the customer’s life or the world to be. This is important, because today’s customers aren’t just looking for “good†products or services: 71% of consumers want to engage with businesses with similar morals and ideologies to theirs.
Two companies that can serve as positive role models here are Adidas and Starbucks. Adidas focuses on the belief in fierce competition and doesn’t stop at its marketing. He emphasizes that sport can change lives and expresses his willingness to help people to win, rather than just participating. Likewise, Starbucks wins despite a relatively ubiquitous product, as it clarifies through the atmosphere of its store that it believes people are entitled to warmth, humanity and connection.
On the other side are Puma and Harley Davidson. Both companies tried to expand their brands in a way that strayed from their original core values. Puma tried to become more of a lifestyle company, while Harley Davidson tried to expand into products like perfume. These offers differed from the reasons customers had traditionally supported and bought from companies, so both companies had to give serious thought to the viability of these changes.
3. Authenticity and consistency
Customers are good enough at detecting when a business is dishonest or fake. A particularly important warning (and failure) is when an organization behaves in a way or communicates ideas that are inconsistent with its traditional added value and ideological message. This type of situation makes the company less trustworthy. This encourages customers to leave or stay away as people no longer know if the company can deliver what they are looking for.
One company that has made headlines for a perceived lack of consistency and authenticity is Amazon. The company was built on the idea of ​​being able to provide everything from A to Z to bring significant benefits to society. But he has come under heavy criticism for the way he would treat his workers, especially warehouse workers. These concerns persist even as Amazon develops initiatives to improve safety and general working conditions.
Related: How to Earn Brand Loyalty in a Treacherous World
Make all three points work for you for long term success
The three points described above work together. If one of the three is missing or not supporting the others, you will probably have a hard time retaining your customers over time. Make an effort to make sure you cover every area. If customers see the value they are getting, are sure of your reason, and it fits their own beliefs and doesn’t observe an extreme change in what you say or do, they are likely to stick with you for a while. good and lasting romantic relationship.
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