Understanding Brand Loyalty, Benefits, and Effective Ways to Increase It

Understanding Brand Loyalty, Benefits, and Effective Ways to Increase It

Brand loyalty is one of the highest achievements in a brand or company. Terms like this have a close meaning with repeat purchases or repeat purchases from your consumers or customers.

So, if we compare it with brand awareness and also brand engagement, then brand loyalty has a bigger responsibility in retaining consumers.

So, on this occasion, we will discuss more about the meaning of brand loyalty and the right way to increase it.

The definition of Brand Loyalty is

Brand loyalty is a commitment from consumers that appears on a particular product or brand. Because of this commitment, consumers tend to continue to make purchases and connect with brands, whether through news or other things.

In simple terms, brand loyalty is the ability of a brand to make consumers continue to trust and make repeat purchases. Generally, if consumers have brand loyalty they voluntarily make purchases regardless of the conditions.

Consumers from companies with high brand loyalty will continue to be willing to make purchases from that brand. They will not affect the increase in price, convenience, or other factors.

In fact, these consumers will also always choose the brand even though there are other competing companies that are considered by some to be able to influence the brand.

Why can this happen? Because in it a sense of mutual trust has arisen between the consumer and the brand. Consumers believe that the brand is the best brand and is in accordance with it.

The benchmark for brand loyalty is not only in increasing revenue. Because, brand loyalty is also about the number of loyal consumers which is higher than anything else.

In fact, at the same time they can also become brand ambassadors or those who provide useful criticism of a company.

Brand Loyalty Tiers

In brand loyalty theory, consumers can be divided into levels or levels of loyalty to a brand. There are at least five levels in brand loyalty:

Switcher or Price Buyer

The lowest level, not the main target of a product. Consumers of this level are not loyal buyers, they will switch brands if there is an attractive offer.

Brands will not have a significant influence on consumers at this level, because these consumers are not after brands, only products that provide the greatest benefits, for example the lowest price.

Habitual Buyers

At this level, consumers buy out of habit. Consumers are usually satisfied or at least not disappointed with existing products or services, so they will continue to buy as long as there are no fatal errors in the product.

This is because when consumers switch brands, they will need greater effort, from observing to trying other products.

Satisfied Buyer

This level includes consumers who are loyal to a brand. This is because consumers are satisfied with what they get, even though there is still a small possibility for them to switch brands.

Buyers at this level may think that switching brands will actually hurt them, because it takes money, time, effort, risk, and other things that are not easy and cheap. This is also understood by competitors who will usually bear the switching costs through benefits such as discounts, and so on.

Liking the Brand

At this level, the consumer already likes the existing brand, meaning that the buyer already has a strong emotional bond with the brand. This preference can come from many reasons, such as experience using the product, quality meets expectations, and symbols for consumers.

Committed Buyers

This is the consumer level for the most loyal buyers. Using this brand will make consumers even more proud, and choose this brand as their identity. The existence of the product brand is also an important thing in their life, they already have enormous trust in the brand.

It is very difficult to get a buyer of this level to switch hearts, with this consumer also recommending the product to other people around him. Then, apart from levels, what exactly is the function of brand loyalty?

The benefits of Brand Loyalty for Brands are

By having high brand loyalty, it means you have consumers with very high loyalty. This means that consumers will always choose your brand over other brands or your competitors. So, here are some other functions of brand loyalty.

Reduced Marketing Costs

Brand loyalty can reduce marketing costs because old customers are already loyal to the brand. So, the product can focus on finding marketing for new customers.

Trade Leverage

Sales will increase as brand loyalty increases. This is because buyers usually buy products out of habit and belief, which is what brand loyalty wants to achieve.

Attracting New Customers

Brand loyalty can also bring in new consumers, the result of recommendations from loyal buyers and recommending the product to those around them. The more people who buy the product, the more attractive it will be for new customers to buy the product.

Provide Time to Respond Competitive Threats

Brand loyalty also gives time for products to be able to respond to threats from competitors. Products will have time for product adjustment before customers switch their hearts, to be able to adjust to existing competition.

Consumers will usually give time for products to update or make adjustments when new competitors appear.

How to Increase Brand Loyalty

The following are several ways to increase brand loyalty from consumers:

  • Understand the needs and wants of consumers, because consumers will look for products that will help them fulfill their needs.
  • Increase brand engagement, because many consumers buy driven by their subconscious mind. This can be done by giving discounts, information, tips, or entertainment and other things.
  • Make sure the brand remains consistent, in terms of quality, service and other things so that consumers are not disappointed and switch to other products.
  • Introduce the brand value that is owned by the brand to consumers, because to explain that the product is trying to give the best for consumers.
  • Create an attractive logo and colors, because it will be easier for consumers to remember.
  • Invite consumers to continue buying these products, with discounts, giveaways, member cards, gifts, and other things that can maintain bonds with customers.