As per branding, an organization has to focus on multiple factors including consumer interest, marketing efforts, etc. During the branding process, the main attention is on brand awareness, customer loyalty, consumer surveys, etc. But how do you decide you want popularity or loyalty?
Brand Loyalty
Brand loyalty refers to the phenomenon where the customer base chooses a specific brand whose quality and customer service they feel compatible with and makes purchases repeatedly from the same brand. Brand loyalty has a powerful drive attached to it as the customers simply choose to purchase over and over again from the same brand because of the quality of the product and their customer service, not based on the prices. These brands grow revenue 2.5 times faster than their competitors. These purchases are responsible for 65% of the brand's overall revenue. And more so the purchases are 90% more frequent.
The major reason why brands with more brand loyalty are benefited more is because they already have established credibility. These brands don't have to spend extensive budgets on renewing their marketing efforts over and over again to bring in new customers. It is way more expensive to create new campaigns and bring new advertisements and promotional events to get newer audiences. Whereas even though the same consumer purchases a maximum of 5 or 6 times however that still brings a greater profit.
The main reason why brands like TATA, Amul, Hershey's, Samsung, etc. have such high brand loyalty among their consumer base is because of the quality of their products and their services. The products of these brands are of high quality and compatible with their target audience. Not just quality but customer service and experience also matters as you can have extremely high quality, state-of-the-art products however if you provide an unpleasant customer experience then they’ll simply choose not to return to your brand. Which ends up simply benefitting the opposition.
Brand loyalty is measured on the basis of customer retention, customer lifetime value, and customer satisfaction. And you can improve brand loyalty by advancing your quality, and customer service, inviting brand ambassadors who have an already engaged audience, and organizing loyalty programs and giveaways will help you acknowledge your loyal consumer base.
Brand Popularity
Brand loyalty refers to the level of recognition and recollection a brand enjoys from its customers. It is a measure of how well-known a brand is in the market as compared to its competitors. Brand loyalty can be achieved by consistently delivering value content according to market trends and consumer demands. A brand can bask in this popularity and take advantage of it. If you measure brand popularity you can do so using market share, brand awareness, customer loyalty, and consumer surveys.
Currently because of the different market trends, having brand popularity seems like a better option, as you at least remain relevant in the market. However, if you think about it that way then having brand loyalty is better than brand popularity. As fast as you gain that popularity, you can go out of trend that fast as well if there are no consistent marketing efforts and updates according to the trends. This is way more costly than maintaining an already established loyal consumer base. This also has a considerably less profit turnover.
If you gloss over the market trends since the onset of the lockdown you’ll see an entrance of multiple brands in the current scene but slowly they fade away because they cannot maintain their popularity for a long duration of time. Thus companies like AMUL, TATA, and MDH are huge brands which run the market for over 20 years now. Because of their trusted quality and consumer service, they have remained in the market. They can launch new products with the same amount of marketing as their previous products and still have huge market sales turnover. This is because their consumer base chooses only to purchase from these brands. If there is a loyal Amul consumer and they are coming across only other ice cream brands then they’ll wait and buy Amul’s ice cream only. That’s how brand loyalty is helpful.
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