Your customer base and customer turnover rate can say a lot about your business. What demographics and psychographics describe the majority of your consumers? How long do you retain customers? Are you steadily gaining or losing them? Analyzing these factors helps you finetune and optimize your marketing strategy.
Ideally, your marketing tactics should have the objective to first reach a specific target audience. After these impressions have been made, it’s crucial that your communications focus not only on a single purchase, but long-term interactions with the consumer. In other words, your advertising and brand image will intrigue customers while your company as a whole keeps them loyal.
One key indicator of a strong company is brand loyalty. This dedication occurs when consumers choose to continuously buy products from the same brand rather than from its competitors. Fostering brand loyalty among your customer base not only improves their lives as a consumer (through ensuring product consistency and habitual purchases), but it also boosts your bottom line. Retaining a customer costs just a fraction of the price of acquiring a new one.
That being said, how loyal are customers in 2019? What makes them loyal? Wikibuy wanted to find out, so they surveyed 5,000 people to better understand the perspective of the average American consumer. The findings from their study contain everything your business should know in order to strengthen brand loyalty.
Before we can dive into why consumers are loyal, we first have to see who considers themselves to be brand loyal:
- 43% of customers
- 46% of women
- 40% of men
- 52% of people from ages 18–24
- 36% of those 65 and older
Out of the consumers who view themselves as loyal to one or more brands, the majority were women and members of the younger generation. Companies support faithfulness in their brand by offering deals/promotions and creating communities. Even though it seems that the older generation should be more inclined to brand loyalty, young adults are likely to connect with a brand via social media.
What exactly makes a customer loyal? About 40% of survey respondents said that product quality is the most important. Another 32% confirmed this opinion when they said poor product quality would make them switch brands. Others said that price, customer service, brand ethics, rewards, and convenience are vital to promoting brands.
Shifting the spotlight from consumer acquisition to retention leverages your sales efforts. Instead of launching an entirely new (and expensive) advertising campaign or paying for a brand ambassador, you can work on developing and growing the company. People who love your brand will naturally advocate for you. In fact, many people recommend their favorite brands to others without even realizing it. Moreover, one out of every four people buy things they wouldn’t normally because of the brand.
Never underestimate the power of a brand. Once a company has established itself in its market, building their brand name through product quality and expression of values is really all it needs to do to create brand loyalty.