The loyalty of a customer is characterized by the repetition of the purchase of products or services of the same brand. It reflects the conscious or unconscious preference of the buyer for an offer compared to those of the competition.
Some companies tend to seek to attract new customers rather than establish a lasting relationship with their existing customers. However, a customer loyalty strategy that is built up through several channels has many positive aspects. A loyal customer will always buy more. Studies show that brands can increase their profits by 25 to 95% with a 5% increase in loyalty.
In a society where consumers are becoming increasingly volatile, building a loyal customer base is an undeniable competitive advantage.
A loyal customer who has had a good experience with the brand will be more likely to recommend it to his immediate network. Studies have shown that 60% of buyers before making a major investment seek personal reassurance before making a purchase decision. With increased customer satisfaction, word-of-mouth communication strengthens customer loyalty and influences the purchase decision.
By establishing brand loyalty towards consumers, the values and image of the brand can be shared and awareness increased at the same time. This viral marketing phenomenon, which can be used even more effectively today through social networks, makes it possible to win new customers through recommendations and thus increase sales.
In order to ensure continuous communication, it is therefore important to invest in customer loyalty measures. The more advantages companies can offer consumers, the greater the chances of building customer loyalty. By providing differentiated and personalized offers, consumers can be retained. It is then also possible to survive economic crises and fluctuations without significantly increased spending in marketing.
The captivating presentation of a brand can generate decisive competitive advantages in a highly competitive market
Since many companies offer similar products and services at similar prices, the way to win and retain customers is through intelligent differentiation.
In this scenario, shopper marketing proves to be a powerful instrument, as it allows brands to be presented in a sustainable way. The success of shopper marketing is directly related to the proximity of the product to the potential buyer. By anticipating the wishes and needs of the consumer, the brand can create added value.
Shopper marketing not only addresses new customers but also promotes the loyalty of existing customers. As described previously, companies should pay more attention to satisfy regular customers – and shopper marketing can be the perfect support.
Shopper marketing involves personal interactions that can hardly be realized with other marketing tools. Personal interaction is important for customers on many levels and can lead to a lasting relationship between brand and consumer. Since the success of shopper marketing can be easily checked and adjusted, this form of marketing is also highly flexible. Here it is very important to ensure that shopper marketing activities are professionally implemented, as they represent the product’s business card to the consumer.
With shopper marketing, the brand is brought to life at the point of sale (POS) or even outside the store
With shopper marketing, customers can be engaged through a variety of interactions, from culinary workshops, product demonstrations and tastings as well as entertaining and relevant experiences. All are part of the repertoire of good shopper marketing agencies. However, the effectiveness of shopper marketing campaigns is always based on their originality and appeal. Shopper marketing campaigns are best entrusted to experienced service providers who are experts in this field and can create ideas that are based on insight and relevance. Likewise, the use of trained and experienced brand ambassadors in these campaigns is crucial for sales development at the POS. Furthermore, it is important to work closely with your retailers, by involving your stockists in the shopper marketing journey and through high levels of communication at store level and your sales partners you will make your shopper marketing campaign a success.
If you have any questions about shopper marketing experiences and how to grow customer brand loyalty please get in touch with one of the ISMG agencies for further information.