Learn the difference between brand loyalty and customer loyalty and how you can use these concepts to take your business to the next level!
In this article:
- They Have Different Meanings
- Varying Marketing Strategies
- Unique Customer Retention Strategies
- Higher and Lower Amount of Purchases
- You Can’t Use the Same Complementary Brands
- Different Messages
- Frequency of Ads
Brand Loyalty vs Customer Loyalty: Differences You Should Know
1. They Have Different Meanings
Both customer and brand loyalty are the results of consistent, positive emotions, but they are two very different concepts.
Generally, customer loyalty pertains to offering goods and services that fit your markets financial needs and budgets. To achieve a high level of customer loyalty, you need to offer the right pricing, discounts, and special promos.
On the other hand, brand loyalty refers to how consumers perceive your brand. Business owners need to instill a permanent positive image in their customers’ minds if they want to achieve high levels of brand loyalty.
So, for customer loyalty, consumers will come to your brand for the goods and services they can afford. Meanwhile, brand-loyal customers will purchase your goods regardless of prices because they trust your business.
2. Varying Marketing Strategies
You can’t expect to raise brand loyalty by applying the same strategies you do to increase customer loyalty. To create a strategy, you need to have a goal.
Now, whether you’re going for brand or customer loyalty, the end goal would be to increase the number of customers that you generate. The challenge is finding out what you need to do to achieve that.
For customer loyalty, you need to study the market to understand what their financial capability is. Increasing this type of loyalty all boils down to understanding the financial and spending powers of your customers.
As such, you might want to offer discounts and promos that suit the market’s needs. Just make sure to use the right medium to spread the word around.
Meanwhile, to increase brand loyalty, you should try to aim for customer satisfaction. Try to make the experience as pleasing as possible for the customer through great service and fun-filled events.
3. Unique Customer Retention Strategies
Apart from marketing strategies, you need to come up with a way to retain both brand- and customer-loyal consumers. Keep in mind that these are two different concepts so you need to adjust the way you approach it.
Customer-loyal customers may be a bit harder to retain because you need to constantly beat the competition when it comes to pricing. You need to know when to raise and lower your prices and rates if you want them to keep coming back.
On the other hand, brand-loyal customers can be a bit simpler to retain. Just make sure to match or exceed your previous performance every time and your customers won’t feel the desire to check out other companies.
Keep in mind that if you mess up even once, it can ruin your reputation and you might risk losing your brand-loyal customers. Make sure that the quality of your goods and services is consistent across all employees and branches.
4. Higher and Lower Amount of Purchases
With brand loyalty, you might sell fewer goods but these have a high-profit margin. Meanwhile, customer-loyal consumers will buy more goods that cost less and have a lower spread.
As such, business owners need to know which products and services to offer. You wouldn’t want to offer the wrong goods to the wrong people, right?
- Customer-loyal consumers will only purchase goods at competitive prices. They might not be willing to get a product that costs thousands of dollars because they’re focused on snagging the hottest low-priced deals on the market.
- On the other hand, brand-loyal customers don’t make as many purchases but you might have a shot at selling them some of your high-ticket or premium items. They’re more likely to purchase something expensive from your brand because they already trust you and the goods/services that you offer.
Profit Margin Definition: The difference between the selling price and the cost it takes to create the goods.
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5. You Can’t Use the Same Complementary Brands
Since customer- and brand-loyal consumers have different mindsets, you have to tailor the complementary products on the buyer. You need to know which goods or services appeal to them the most.
- Customer-loyal consumers are likely to purchase something cheap that would complement their existing purchase. This might be a cellphone strap for their cellphone case, an extra large fries along with their meal, or a can of soda to go with their bag of chips.
- Meanwhile, to build brand loyalty, you need to focus on high-quality goods that would provide long-term benefits. For example, if you’re selling a life insurance policy, you can offer an add-on that would protect their loved ones or their assets as well.
6. Different Messages
Since brand- and customer-loyal consumers have different mindsets, you can’t use the exact same message and medium for both. You need to understand what they want and then offer it to them.
- Customer-loyal consumers focus on getting the best deals so make sure to inform them about promos, discounts, and special packages.
- Meanwhile, if you’re working on brand loyalty, you might want to keep your customer base updated with regular informative emails, posts, and flyers.
Of course, in both cases, the goal would be to provide value to your consumers. Never oversell to brand-loyal customers and avoid ripping off customer-loyal consumers with cheap items.
7. Frequency of Ads
Repetition is very important when building a good reputation but you need to know the right time for it or else it’ll simply fail. When building brand loyalty, you can repeat your brand’s mission and vision to your customers as you see fit.
Do everything you can to provide value and information in whatever way you can. Repeat the message every so often so clients will remember you when they actually need to make a purchase.
For this strategy, frequency is important but you don’t have to be so aggressive in running these types of campaigns. Just make sure some of your brand-loyal customers receive from you regularly.
Meanwhile, it’s not really good for business to provide huge discounts and sales every single day, right? You can only shave off a few dollars from the price of your goods at specific times.
So when it comes to customer loyalty, frequency isn’t as important but you need to disseminate the news properly. Before holding sales or offering discounts, it’s important that people know about them first.
These are some of the most important differences between customer and brand loyalty. Overall, what’s important is to understand that your customers have varying needs and it’s your job to meet them.
Of course, the best way to retain and attract customers is to provide good value. Outsell and outperform the competition so your customers won’t even think about visiting another shop ever again!
Do you have any more questions on customer and brand loyalty? Post them in the comments section down below!