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The brand loyalty squeeze.

How can businesses today, understand enough about their customers to drive sales and brand loyalty? We now live in an age where consumer loyalty is declining and customers switch between brands faster. Consumers are faced with over 4,000 brand messages a day across multiple touch-points and platforms. With this increasingly noisy market place, how do you get your message heard and how can you inspire brand loyalty?

Using data driven insight and the right CRM strategy you CAN gain a better understanding of your customers to develop the right communication strategy to engage more effectively and build brand loyalty.


Brand Loyalty Squeeze


Customer Brand Loyalty

Consumers are a fickle bunch when it comes to brand loyalty, with customers admitting to being less loyal than they were even 5 years ago.

Customer Brands


There are many contributing factors; from rising consumer expectations, to the prevalence of discounts and promotions. Retailers and businesses are now in an increasingly competitive marketplace. Consumers have increased expectations, whether level of customer service or purchasing experience. Add the ability to compare pricing on line and the presence of competing daily discounts, sales and loyalty programmes, it’s not surprising that once loyal customers are being swayed.

Photo Credit: NTinM4

Brand Loyalty Factors


Brand Loyalty Drivers

A 2017 survey of GB adults asked what drives their loyalty towards brands. 64% of respondents stated they are loyal to a brand if it offers good value for money, while over half (52%) said that trusting a brand is a key driver to their loyalty. (Statistica 2018)

Businesses now need to be able to communicate the right products at the right price, timed when the consumer is receptive and still there’s no guarantee that they won’t switch and purchase from a competitor!

So how do businesses facilitate the ability to communicate with relevant and targeted messaging?


CRM to drive brand loyalty

CRM helps businesses gain an insight into the behaviour of their customers to modify their business operations to ensure their customers are served in the best possible way.

There are a lot of different definitions, but Wikipedia succinctly defines Customer Relationship Management as “Customer relationship management (CRM) is an approach to manage a company’s interaction with current and potential customers. It uses data analysis about customers’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth”.


Customer Loyalty


Through ongoing CRM, you can understand who your customers are, what they have purchased, what they might be interested in now and potentially in future. Businesses need to understand this to provide a better shopping experience for each customer.

A good CRM system will assess when and how to communicate with the customer, offering them information, updates or promotions that they will be genuinely interested in, building a level of trust and interest in your brand.

Understanding Your Customer Segments to Enable Targeted Marketing

By analysing customer data, (socio-demographic, geography and transactional) your business will build a picture of your customers, what they look like and their interests and hobbies that may influence their behaviour and motivations. Segmenting customers into similar groups (by shared characteristics or purchasing traits such as age, spending habits and product interest) allows you to communicate more effectively through a tailored and targeted approach.

With established customer segments, you can focus on marketing directly to each group based on the products or services most relevant to them and their previous purchasing behaviour. You may find that different products and services are more successful with specific segments of your customer base.


Customer Targeting


Customer segmentation will help you design a marketing strategy to focus on each specific segment.

This benefits your customers by providing a better overall experience, sending personalised communications that are targeted according to their individual shopping preferences and habits.


Brand loyalty and customer lifetime value

Retaining your customers is important as they are your most important prospects. The better you look after your current customers the more successful your relationship will be and more profitable that customer will become over their lifetime.

Customer lifetime value


Whatever industry you are in, the marketplace will be competitive and challenging. All too often the focus is on prospect acquisition and so the importance and true value of existing customers and interactions can be overlooked.

The cost of acquiring new customers is high, often said to be between 5 and 10 times higher than retaining existing customers.

Companies should recognise the worth of their customers and utilise data driven customer insight and CRM to ensure they have a strategy in place to not only retain them, but also grow the relationship.

Developing brand loyalty is about growing a long-term relationship with your customers. Understanding their interests and motivations and delivering a top-level service. Foreseeing your customers future needs so that they have no reason to look elsewhere.

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