Reasons Why Brands Are Losing Loyal Customers

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It is rightly said that loyalty is the best policy and what else do you expect as a brand other than having loyal customers. Attracting customers is supposed to be one of the hardest parts of running and growing a brand however keeping those customers attached to your brand is even more challenging.

So what makes customer loyalty so important?

There are a ton of benefits of customer loyalty toward the brand but let’s look into it! Customer loyalty drives repeat business. It may go without saying that loyal customers are most likely to come back and purchase from your brand. They have a favorite product that they can’t leave without always being inclined towards it. It’s needless to say that returning customers spend more money on products and services as compared to first-time customers this can result in an increase in the revenue of the brand as well as the growth of the brand. Not only will loyal customers keep coming back themselves but also spread awareness by word of mouth about the brand. Satisfied customers are likely to tell their family, friends, and well-wishers about the brand, its products & quality. Satisfied loyal customers advertise the brand personally which can extend the reach of the brand too.

When a loyal customer shop from your brand a competitor loses its potential client or potential revenue so a loyal customer is a good defense shield against the competition. Often loyal customers answer your service, respond to questionnaires distributed by the marketing team, and give out valuable insights regarding the products which can be a great insight for future marketing and sales tactics.

There are many ways to build brand loyalty from a simple act of kindness like donation of a part of the revenue to various NGOs or strategies like creating social awareness, spreading out gifts and hampers to loyal customers, etc. Let’s look at a few brands that have a strong base of loyal customers

1. Apple is the epitome of a strong customer base they provide constant feedback and engaging conversations to their customers regarding their products and provide features for their customers which have built them a loyal and a strong community
2. Starbucks is one of the coffee brands which has a strong community Starbuck not only creates quality products but also makes them easy to purchase. They have various reward programs which strategically boost their sales. Members can also sign in to various programs and receive stars for their purchase and gradually at the end receive a free drink or a treat that is scored!

It can be said that loyal customers can make a brand and the Loss of loyal customers can break up a brand.

Let’s look at the reasons which lead to the loss of loyal customers for the brand

Failing to Meet Customer Expectations

The quality of a product or service is undoubtedly one of the major setbacks for losing loyal customers. It is necessary for the brand to understand the requirements of the customer and provide what the brand claims. Good quality of products or services which meet the expectation or exceed expectations of the customers can lead to the development of loyal customers however lack in quality of the product or services can lead to not meeting the expectations of the customers.

Lack of USP

It is necessary to have a unique selling proposition to make your product or service stand out in this tough competition. Diligent effort should be taken to make products that are different from competitors. The brand should come up with innovation and ideology which can impress as well as be useful for the customers. The brand should come up with something different, unique, and useful to satisfy its loyal customers and attract potential clients.

Poor Customer Service

Customer service is one of the principal reasons which make people stick to the brand. Good customer service can impress loyal customers. For a customer, your support team is your brand representative creating strong customer service with added after-sales programs and campaigns can lead to strong customer service and develop a community. On the other hand, ignoring customer service, and not giving attention to the needs of the clients can lead to the worst customer experience. Inferior customer experience ultimately results in loss of clients and a bad word for the brand.

Price

Keeping a price on the list of reasons for brand loyalty may sound a little cliche but pricing is one of the most important factors which affects the customers. It is undoubtedly one of the biggest attributes which can lead to a shift of customers from one brand to another. Today customers can compare prices with just one search and one tap on the screen and see where else they are getting better deals. Hence it is necessary to have relevant pricing strategies to create a strong community for your brand.

With all the advanced digital technologies the difference between the expectation of the customers and what is being offered can get transparent. Hence the brand should create a strong and satisfying experience for the customers so they can recall the brand as and when required. Great customer service can help customers believe that you care for them which can lead to repeated loyalty and strong relationships hence it is necessary for a brand to engage In loyalty programs and encourage word of mouth through loyal customers to make your brand grow!