Developing and maintaining loyalty should be priority number one for any brand or company. There are two types of loyalty that, when established, can help boost your ROI: brand loyalty and customer loyalty. To reap the rewards of both types of loyalty, though, we must first understand the difference between the two.
Brand loyalty represents how consumers feel about your brand. You want to build a level of prestige through your unique offerings, while demonstrating key benefits for consumers. Make an emotional connection that resonates with consumers, which can lead to a positive brand experience that boosts your company’s reputation — and keep your company in high regard to consumers. Once this loyalty is established and earned, consumers are more likely to try your other products and services — or, even better, recommend your services to others.
Customer loyalty, on the other hand, is all about consumers returning to your business, and can be effectively developed through consultative offerings or memberships. In some ways B2C companies have an easier time developing that kind of loyalty — through rewards programs, for example. To tap into that same type of loyalty, a B2B company personalizing their unique message and proving that they hear and understand customers’ pain points can help maintain customer retention. This can be best done through customer relation management (CRM) and other nurture campaigns.
The differences between these types of loyalty are subtle, to be sure. But building up both over time can help yield a higher ROI.
Loyalty isn’t just a “nice to have” for your business — it’s a necessity that can make a real impact on your bottom line. Acquiring new customers can cost five to seven times more than retaining existing customer, with a 5–7% conversion rate for prospects versus 60–70% for existing customers.
Moveo’s branding experience gives us unique insights into building true brand awareness that translates to loyalty. Contact us today to see how our expertise can help you overcome your branding or customer retention challenges.