© Lida Citroën,
To find a fun example of brand loyalty, one needs look no further than the tug-of-war between PC and Mac users. From the entertaining “rival” television ads, to the status Mac diehards exude as they display their stainless steel laptops at local Starbucks, most of us have a loyalty to one brand or another. Not surprisingly, Apple reports ownership of more than 91% of the high-end price market of computing. On the other hand, PC brands dominate the overall computing market, offering everything from low-end, generic models, to higher priced, large screen computing models. So, why do Mac fans display a cult-like following for its brand?
Besides intuitive functionality, responsive computing power and whimsical creative interface, Mac fans are brand loyal. Once a Mac user, always a Mac user. Mac fans are so connected to the brand they participate in online chat forums, clubs, open-source platforms and brand loyalty opportunities at an unprecedented level. It’s as if they were a direct extension of the brand and all it creates.
PC fans admit to being function-driven, cost conscious and less concerned with status*. That said PC models are available in numerous price points, colors, functional features and brand attributes. To PC users, brand is less critical than other priorities. Mac doesn’t offer a lower-priced offer, and PC users are just fine with that.
Do your customers engage with your brand like a Mac user? Would they defend your company online, in person or in print? Are they providing feedback, input and commentary on behalf of your product or service? Think of the amazing R&D resource Apple has? By reaching out to users in online forums, for instance, new ideas, technology and functionality can be floated by current fans to determine feasibility and reception by new markets.
What is brand loyalty?
Brand loyalty is defined as the buying behavior of a consumer, customer or client, wherein they will repeatedly purchase from the same brand, refer that brand to others, and will forgive brand flaws in exchange for higher benefits. Brand loyalty builds an emotional (sometime unconscious) connection with the customer in such a way that they will also pay a premium for the brand (over un-branded competition).
In a challenging economy, brand loyalty helps us create viability. When times are tough, purchasing and repeat purchasing behavior are directly impacted. Staying in front of your customers’ buying concerns, by engaging them in loyalty programs for instance, can assure stability and even growth in a challenging market.
Moving customers from “Happy” to “Loyal”
Brands build credibility by 1. Articulating the brand’s values, and 2. Demonstrating behavior consistent with those values. Brand loyalty means moving customers from “Happy” — I enjoy my relationship with this brand, but can be pulled away by other brands, which entice or excite me more… To “Loyal” — I relate to the values and attributes of this brand. I am them and they are me. I feel better about myself by aligning with this brand.
Shifting customers from happy to loyal involves strategic movement, but most importantly, it requires a level of consistency, uniqueness and transparency. Consistency means you deliver what you promise, in the same way, from top of the organization to the ground level. I can learn to trust your brand. Uniqueness implies differentiation. If all things look the same, why would I become loyal to your brand? Being unique means you don’t target everyone, you target me – the way I want to be targeted to. Finally, transparency means you articulate your company’s values, goals and challenges and are open to conversation from loyal brand fans who have feedback, insight or comments to share.
Examples of brand loyalty campaigns
Getting customers to engage with your brand can happen in many forms. The goal is to create a two-way conversation with those who believe your brand stands for similar values to their own. Bring them close to you with feelings of “specialness” and they will reward you with increased purchasing, word of mouth referrals and support in challenging times. A few campaign ideas to consider:
- Frequent purchaser programs (i.e. frequent flyer miles, customer “points”)
- VIP events/promotions
- Preferred customer incentives, coupons, purchasing opportunities
- Client-only newsletters
- Forums, discussion groups (engage your loyal customers in conversation, R&D, troubleshooting, etc.)
- Fan pages (microsites, Facebook, etc.)
Upside and downside of brand loyalty
The upside of brand loyalty programs are numerous: brand evangelism by a diverse customer base, word of mouth and viral marketing, ideas for market opportunity and brand extension, and the halo effect a vibrant brand can have on other products and services offered by the same company.
Unfortunately, a loyal following of diehard fans can damage a brand if not properly managed. Imagine the impact if loyal fans are left feeling unappreciated and tended to. Brands have seen the backlash of diehard fans that become vocal when they disapprove of what they see as a change in the brand values. Similarly, strong brand loyalty can lead to a false sense of comfort by inattentive marketers who might neglect to see loyalty eroding.
When measuring brand loyalty, beware of anecdotal market perception versus actual market data, which could create a perception of loyalty where one does not exist.
What we can learn from Mac and PC
Sustainable brand loyalty boils down to one thing: authenticity. Whether your business is a service or product, regardless of industry or track record, brands stand the highest likelihood of success when they walk the talk and engage their customer in the brand.
