A cornerstone of thriving brands is retaining repeat customers. On average, it costs less to retain repeat customers compared to acquiring new ones and loyal customer typically spend more than their first time counterparts. With COVID-19 still posing a threat, businesses need to create as many loyal customers as possible now more than ever.
Brands must spend more time understanding and building the perception of their brand. These values are at the heart of creating loyalty and trust in the minds of customers.
Supporting charities and nonprofits are a great way for brands to express their values. 85% of consumers overwhelmingly prefer businesses that support nonprofits through donations, partnerships, or sponsorships. Not only does this heighten your brand in the minds of consumers, but presents other benefits including tax incentives, making your company more desirable for potential employees, and free promotion at charity events. But more than that, it is simply good to give back to the community through philanthropic activities.
Customers are more willing to share personal data with brands they trust to increase their shopping experience. Supporting nonprofits is one great avenue for creating that trust but another way is ensuring your brand is participating as a good corporate citizen.
Brands can accomplish this rather easily by avoiding negative press that comes from racist or sexist comments. Company wide policies should be put in place to protect the brand’s image and core values. Those that to do so run the risk of alienating consumers and being boycotted by a portion of their audience. With regards to political beliefs, consumers are less likely to boycott a brand that differ from their beliefs but typically prefer brands remain apolitical. There is still a risk of alienating customers when making a public political statement, however, but it is up to each brand whether to risk taking a side.
Use Tangible Benefits for Building Relationships
Building trust and giving customers an intangible reason to build confidence in your brand is only part of the equation. By earning customers’ trust, brands still need to incentivize reasons to get them to share personal data such as offering exclusives or discounts in exchange for personal data. This data can then be used to enhance their experience and tailor it to your audience’s particular profile. Offer the right discounts at the right time and create a more satisfying customer journey.
With persistent communication with customers, a deeper relationship can be built between brands and consumers. Promoting core values, regular communication, and an exclusive experience for loyal customers work hand in hand to build brand loyalty. It creates a level of trust which increases revenue and makes your brand stick out in the minds of consumers.