introduction
A small coffee shop recently learned something interesting: customers who received a simple handwritten ‘thank you’ note on their cup came back nearly twice as often as those who did not. Nothing about the coffee changed; it was just how the business engaged with people that created this quiet change in a powerful truth about (the state of) business today.
The ability to earn customer loyalty is more difficult today than ever before. With too many choices and all the distraction of the digital clutter we live in; customers can switch brands in an instant. Therefore, marketing needs to go beyond just promoting (products or services) and start becoming a way to develop relationships with (existing and new) consumers so that (they) continue to come back.
Thesis Statement: Improving customer loyalty through effective marketing can be accomplished by creating emotional connections, providing customized experiences, and delivering consistent value associated with a brand. Collectively, these three components provide the bridge to convert casual customers into loyal supporters.
Create lasting connections through emotional marketing.
Price is not the only factor that decides whether a customer will be loyal to your business; customers are also loyal to businesses that connect with them emotionly, where the customer feels valued, understood or even inspired. Smart marketers look to utilise emotion in an un-manipulative way, as a way of developing a human connection.
Why emotional marketing is effective
Research consistently shows that customers who are emotionally connected to a brand or company have a higher lifetime value. They also tend to be more likely to recommend that brand or company to others. The way a brand or company has made a customer feel, through emotional marketing, will stay with the customer for a long period of time, often longer than the memory of the actual transaction.
Real world examples of emotional marketing
Nike – Nike uses emotional marketing by not just promoting a shoe, but a message about perseverance, identifying, and achieving success. Through successful marketing campaigns, such as Just Do It, Nike has created an emotional connection with its customers that go way beyond product purchases.
Apple – The Apple marketing strategy is built around creativity, individuality, and self expression. Customers are not just buying Apple products, they are also buying in to a lifestyle.
Dove – The Dove Real Beauty Campaign has developed a strong customer loyalty through challenging traditional beauty normative, while also fulfilling the emotional and value systems of their customers.
The difference between emotional marketing and traditional marketing models
Traditional marketing models have focused primarily on product features and discount pricing. While these strategies will work from time to time, they are of little value in creating customer attachment.
Emotional marketing differs in that:
It places an emphasis on storytelling first and foremost, rather than hard selling
It develops trust in the customer rather than creating urgency
It encourages and fosters long term relationships, versus short term purchase transactions.
Therefore, when customers feel connected to a brand or company through emotional marketing, they are much more likely to remain loyal customers.
How Personalization Creates Relevance and Trust
When you walk into a retail location and the staff knows your preferences and can recommend what you need, this is what personalization is trying to recreate at scale.
Using data in modern marketing allows for the ability to send messages, offers, and experiences to consumers in ways that show they are being treated thoughtfully and respectfully (because their time is being treated as valuable).
Research Validates Personalization
Many research studies have indicated that consumers are more likely to do business with companies that provide personalized experiences than they are with companies that do not. In fact, consumers are substantially more likely to remain loyal to companies with whom they have an efficient, relevant interaction.
Examples of How Personalization Can Be Used in the Marketplace:
Email Segmentation – Sending customers targeted emails based upon their action(s) taken with regards to emails sent to them, ie, sending them a targeted email based upon what they typically do with the emails that have been sent to them versus sending them all a generic newsletter.
Product Recommendations – Utilizing product recommendation functionality, like on sites such as Amazon, to provide recommendations based on previous purchases to minimize the customer’s cognitive fatigue.
Loyalty Generation – Offering reward opportunities based on individual actions encourages repeat engagement.
An Example of Personalization at Work:
Spotify’s Year in Review “Wrapped” Campaign is an example of When Spotify provides each user with a custom-created summary of the user’s musical listening habits, it gives rise to the user’s unique identity and many users will post their summary online, thereby creating a positive moment in time where marketing creates an experience that brings joy as a result of personalization rather than an interruption of experience due to mass delivered communication that lacks relevance and establishes no connection to an individual recipient.
Building Brand Trust through Consistent Value
When customers consistently receive what they expect from your brand it leads to building trust. Consistency in your marketing message, your services, and your brand identity help to assure your customers they are making a wise choice in doing business with you.
Marketing is the most powerful of all facets of your business in that it reinforces your brand promise at every point of customer contact, whether it be through social media or customer service.
The Power of Consistency
When brands are consistently reliable, customers stop considering alternatives to what you offer and the choice to do business with you becomes automatic.
Examples:
McDonald’s: Every one of McDonald’s customers around the world expects to receive the same product (taste) and service, regardless of where they are located. The marketing they provide makes customers feel comfortable and familiar with the brand.
Coca-Cola: Consistent branding for decades has made Coca-Cola an instantly recognizable brand name around the globe.
Amazon: Amazon’s marketing consistently emphasizes speed and convenience and matches the experience customers have when doing business with Amazon.
How to Maintain Your Brand Value
Develop a clear set of brand guidelines
Sync your marketing messages with your service delivery
Maintain consistent voice and visual identity at each touchpoint
Quickly respond to customer inquiries
Comparison of Inconsistent Branding vs. Consistent Branding
Inconsistent marketing confuses customers. Shifting too frequently between messaging or not meeting promised commitments causes customers to lose trust in your brand.
With consistent branding, you:
Reduce customer uncertainty
Build credibility with the customer
Encourage customers to purchase from you on an ongoing basis (habitually)
As brands become reliable over a period of time, trust is built and becomes a competitive advantage that price reductions alone cannot provide.
calculation
There is no doubt that customers’ attachment to a business occurs through strategic thinking – brand creation that fosters a connection on an emotional level creates a relationship versus a transaction with a customer; an organization that offers personalized service creates customer recognition valuing to the level of the customer; and organizations that remain true to their brand’s value have built enough trust to continue to return to the organization.
As businesses continue to make their way through the evolution of technology, one thing is certain; regardless of how complex or simple the process of creating a long-term customer may become, the foundation of customer loyalty to a brand remains unchanged – customers remain loyal to brands that treat them as people.
The call to action
Organizations who wish to experience sustainable growth need to stop viewing marketing as a promotional tool. Consider it the engine of customer loyalty and begin to develop your marketing strategy now; gaining a new customer is good; however, retaining that same customer will provide an organization with the long-term profitability that is essential for success.
A really good blog and me back again.