Loyalty — is a typical marketing criterion that reflects the attitude to services and goods, perceiving them as products of a particular brand.
Modern marketing in most cases is focused on attracting new customers. He often uses loud slogans and populist appeals, trying to get more customers. This strategy is very effective, and is able to provide high sales at the initial level of brand formation. If the marketing strategy is focused exclusively on this direction, then a large rise will be followed by a rapid fall. To prevent this from happening, it is necessary to increase customer loyalty from the very beginning of the advertising campaign. It is important to make the customer come back again, and at the same time recommend the brand to their colleagues, friends and acquaintances.
Terminology and description
Loyalty — the attitude of consumers to certain products of a particular brand. Involves the definition of choice and recommendations.
Customer loyalty-loyalty to a brand or a specific product. Expressed as reasonable and unmotivated reasons to make a purchase. Predetermines the choice of the buyer among the big range.
Loyalty to the product — the attitude of customers to a particular product or service, regardless of the brand. This type of loyalty is the basic in the formation of relations to the company. The more the manufacturer of goods with a high level of loyalty, the higher its rating among buyers.
Brand loyalty — the attitude of the buyer to a particular brand. Appears regularly purchase products from the same manufacturer. It often depends on the quality of the products offered and the creation of links between the consumer and the brand.
Modern companies are very rarely resorted to loyalty programs, relying on the great periodic sales. At the same time, large corporations and enterprises with an effective marketing strategy understand the need for such measures of influence. Therefore, today we can observe the formation of certain brands that can compete with brands that hold a leading position in the market.
The purpose of loyalty
Loyalty is a complex phenomenon consisting of several aspects aimed at the basic resources of consumers. Its task is the balanced satisfaction of material, cognitive, temporal and affective needs. In practice, it looks like a proposal of the desired product with the required quality and characteristics at minimal cost.
Such a strategy has goals:
− retain existing customers, ensuring their stability and quality of services and goods;
− attract new customers by recommending existing customers;
− study of demand for products and services, as well as the formation of basic criteria for the creation of new proposals;
− development of effective marketing programs and tools designed for long-term relationships.
Basic principles of loyalty
On the basis of a large number of studies in the field of marketing, 4 principles of loyalty formation were formed. On their basis, you can get a stable behavioural response, stable for a long time:
- Awareness. This principle is aimed at human cognitive function. Its essence is to create certain identifiers that will recognize the brand, object or service, causing feelings or emotions. In fact, recognition should reach such a level that a person independently identifies an object with specific cognitive States.
- Saving. One of the most important principles for the formation of loyalty. The company should show the possibility of saving valuable human resources. It doesn't have to be money. Emphasis can be placed on saving time, physical effort, emotional state or obtaining additional benefits.
- Great value. A service, product or brand should offer something that is important for a person. Usually the emphasis is on the abstract missing, but very important for the buyer. For example, emotional benefits, feelings of superiority, belonging to a privileged class, special status, etc.
- Stability. For most people, the issue of permanence is a priority. They want to be confident in the future, demanding a certain guarantee. Therefore, the stability of the marketing policy, strict adherence to the principles of the company, and the fulfilment of its obligations, can guarantee the achievement of the desired result.
It is impossible to use one of the principles to achieve loyalty, as it will turn into the usual attraction of new customers. Pay attention to your company or products can be with one component, but to keep a person needs a set of measures based on all four principles. Violation of one of these points will necessarily lead to a partial loss of loyalty, and with it some customers.
Typology
In the marketing industry, it is customary to distinguish 3 main types of loyalty based on the goals and methods of achieving them:
- Transactional loyalty. Focused on customer behavior, and is expressed in the number of purchases. This loyalty is measured by the number of transactions. It is considered to be the number of purchases by the same customer for a certain period of time.
- Perceptual loyalty.it is based on the formation of subjective opinion. This is based reviews, features, interviews, etc.
- Complex loyalty. A peculiar combination of perceptual and transactional type.
Most marketers are guided solely by the complex loyalty, considering its performance the closest to the truth.
Usually a comprehensive loyalty conventionally has several subtypes:
− valid loyalty. Expressed in the regularity of purchases and the formation of subjective opinions. In this case, the perceptual and transactional types work with maximum efficiency;
− false loyalty. Determined by the presence of transactions, but does not form a sense of attachment, and does not create a relationship. Typically, this subtype occurs when there is a lack of quality, satisfaction and lack of alternatives;
− latent loyalty. This type reflects the situation when a person has a positive attitude to the brand, product or service, not being able to purchase them;
− disloyalty. In this case, the client is not satisfied with the product service or brand, and he will not purchase them under any circumstances.
Loyalty program — a set of activities aimed at increasing loyalty, using all available principles to attract new and existing customers. These are not bonuses and promotions, but a full range of measures aimed at groups of people without a specific interest. The purpose of this program is to eliminate the shortcomings and omissions of the existing marketing strategy, with the introduction of additions and changes.
Loyalty programs
The main objective of such programs is the transfer of primary customers in the permanent. They are aimed at retaining the buyer by forming profitable offers, and creating a kind of dependence.
Typical loyalty programs are based on the following activities:
− creation of unique offers for a specific customer, taking into account the number of transactions;
− connection of regular customers to a kind of system of bonuses and discounts, taking into account mutual cooperation;
− formation of additional proposals in the form of a storage system, which creates a kind of attachment;
− provision of privileged services, depending on the duration of cooperation or the number of transactions.
Selection of criteria for the formation of the loyalty program should be focused on the financial and psychological component. The first is to create profitable offers that improve with each new purchase or cooperation time. The second, usually focused on personal superiority and belonging to a certain class.
Any loyalty program requires notification of all regular customers. Experienced marketers use this information to attract new customers. With the right approach, such an action can bring a double result.
Practical recommendations to increase loyalty
It is impossible to create a specific layout of the work program without reference to a specific brand. It is necessary to take into account the specifics of the company, the presence of the customer base, the current reputation, etc. However, you can create two main factors that should be guided in the development of the strategy.
To increase loyalty, it is also recommended to use the services of various payment systems and banks. Customers have a good attitude to the possibility of purchasing goods and services on credit, as well as appreciate the availability of several payment options. This approach is already used by many companies and successful brands. Therefore, its implementation can be considered mandatory.
Level of service
Customer loyalty is formed by a high level of service. At the same time, polite attitude and patience to complex issues perform only a third of the function. Most often, under the high level of service customers themselves understand the following factors:
− providing discounts, both personal and group directions;
− special accumulative system offering to use bonuses or cashback;
− creation of personal documents, special accounts, identification cards;
− development of mobile applications that take into account the needs of the client and implement a marketing strategy;
− creation of a customer base with the possibility of periodic notification of new promotions, bonuses and discounts;
− development of a model of personnel behaviour to a specific group of customers.
Only an integrated approach, using all the above points, can guarantee a certain result. Application of a separate event will be perceived by the client as a one-time action.
After-sales support
This trend to increase loyalty is ignored by many companies. As a result, they begin to lose customers who prefer another brand, where the person after the purchase have due attention and help with some issues arising in the operation. A good example of this can be seen among mobile phone manufacturers. Companies that periodically release updates, and support their models of devices for more than 2 years, enjoy great loyalty, and have their fans.
Therefore, it is recommended to use a certain scheme to work with the buyer. Its sample can be represented as the following sequence of actions:
− the first call to the client, establishing personal relationships, describing the benefits of cooperation, and providing information about the latest offers of the brand;
− re-communication with the customer after the purchase. Questions about past acquisition satisfaction, service quality assessment and information about new products and promotions;
− periodic contact with regular customers to consolidate cooperation.
This sequence is very conditional. It can be changed and refined depending on activity of the company and taking into account available resources.
Very often, after-sales support is shifted to social networks and all kinds of messengers. These are effective marketing tools that can solve a lot of problems to increase loyalty. In this case, the call of an ordinary person will always be evaluated with a high priority, which will affect the attractiveness of the brand.
Summarize
In today's market is a serious struggle for each client. Numerous manufacturers and representatives of the service sector use the most sophisticated methods of attracting new customers, arranging real battles with their competitors. In such a situation, it is very important not only to bring a new buyer, but also to be able to turn it into a regular consumer of your products. That is why the indicator of brand loyalty is one of the most important, and the process of its increase is laid in the marketing strategies of even the most popular and promoted companies.
The basis for the formation of such a relationship is not only the quality of the product itself. For most buyers, no less important factor is the receipt of additional benefits, both financial and emotional spheres. Therefore, when developing a new marketing strategy, it is important to introduce certain loyalty programs that will retain existing customers and bring new customers through them.
References:
- Margarita Akulich “Customer loyalty” (Russian)- Moscow 2016
- Mikhail Dymshits “Cunsumer Loyalty:Mechanisms of Re-Bying” Marketing (Russian), Moscow,2007,33pages.
- Simon Uwins “Creating Loyal Brands..”
- Stefan Butcher “Loyalty Programs and Loyal Customer Clubs” 260 pages
