Reasons for customer loyalty will vary across your customer segments and can change over time throughout the customer life-cycle. Their level of commitment (loyalty) is driven by motivators. Buying motivators are things like price, value, quality, experience and convenience, just to name a few. The more motivators your customers have, the stronger their level of loyalty.
Brands spend up to millions of rands in marketing and advertising to motivate customers to choose their brand, as much as it can bring in the numbers does it result in a loyal customer? Here are a few motivators that we think brands should look at that determine buying behaviour and ultimately result in loyal customers:
Price: In this tough economy more and more South Africans are price conscious. However, someone can always beat your price, so the goal is to make your product or service affordable to your customers and tied to the value it provides without compromising your revenue or quality.
Value: What’s the benefit of your product or service to your customers? Is it important to them, useful, solves a problem, fill a need or provide entertainment? Always evaluate how your value (benefits) compares to your competition.
Quality: How do customers perceive your product or service? Are you meeting customer’s expectations or even better exceeding them?
Experience: The reason consumers continue to buy (or don’t buy) from a particular company is because of the experience. We remember both the good and bad experiences we’ve had during the buying process or while using the product or service. This plays a big part in whether or not we decide to purchase again from this company.
Convenience: Let’s face it, we’re all busy. A lot of times we buy things or go places because it’s simply the easier choice. Often times what makes customers loyal is that you’ve removed the headache of shopping around. Whether it’s buying online or going right around the corner, we often choose the most convenient option. We’ll do this even if it means spending a little more. In other words, sometimes convenience can trump price (as long as it’s within reason). If the price difference is worth the ease of buying or time saved, we consider it money well spent.
Nostalgia and longevity: If your product or service taps into fond memories from a consumer’s past or has been around for a long time, there’s a good chance they will buy again and often be loyal to your brand over your competitors.
Social: Consumers tend to be more loyal to a brand if they overall feel the company is socially responsible, for example shared beliefs or gives back to the community.
Trying to create a sense of loyalty based on a product is a difficult task. Products don’t create loyalty because anyone in the market can duplicate your product. Remember, the more positive motivators a consumer has for your brand, the more loyal they will be.