{"id":708,"date":"2021-06-21T10:55:09","date_gmt":"2021-06-21T00:55:09","guid":{"rendered":"https:\/\/www.customgear.co.nz\/blognz\/?p=708"},"modified":"2021-06-21T10:57:31","modified_gmt":"2021-06-21T00:57:31","slug":"driving-stronger-loyalty-through-brand-recognition","status":"publish","type":"post","link":"https:\/\/customgear.co.nz\/blognz\/driving-stronger-loyalty-through-brand-recognition\/","title":{"rendered":"Driving Stronger Loyalty through Brand Recognition\u00a0\u00a0\u00a0\u00a0\u00a0"},"content":{"rendered":"

While the acquisition of new customers has been the main goal of many businesses for decades, there has been a resurgence in recent years of the long-neglected business practice: customer loyalty.<\/p>\n

If companies are convinced of the need to invest in the loyalty of their customers, it is not only for its attractive cost\/revenue generation ratio. It’s also for the beneficial impact it has on the corporate brand image. Today, one of the strategies to raising customer loyalty is brand recognition.<\/p>\n

Building Customer Loyalty, an Economic Asset for the Company\"\"<\/h2>\n

If it is so important to company executives to preciously retain existing customers, it is because financially, it pays off.<\/p>\n

15% of a company’s most loyal customers represent around 60% of its turnover. That’s getting closer to the 80\/20 law of economist Vilfredo Pareto who explains that 20% of our actions produce 80% of the results.<\/p>\n

For mathematicians, we can stop there, the numbers have spoken. Yes, but\u2026<\/p>\n

Financial Rewards No Longer Bring Loyalty<\/h2>\n

Today’s brands have recently abandoned their traditional loyalty program which most often consists of financially rewarding their customers according to their volume of transactions.<\/p>\n

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By gradually rethinking their programs, brands are illustrating the need to return to the fundamentals of customer relations.<\/p>\n

According to a McKinsey study<\/a>, 58% of consumers do not use the loyalty program to which they have subscribed. This is all the more problematic as the costs of acquisition via digital channels, which were once very low, continue to climb.<\/p>\n

On Facebook, the average cost per thousand impressions (CPM) increased by 100% between 2019 and 2020.<\/p>\n

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Retaining a customer is certainly creating a feeling of reward, but also a privilege, consideration, and recognition. And to do this, the “cashback” – too expensive for brands, and with often almost zero perceived value for the customer – is no longer enough.<\/p>\n

Thinking about your loyalty program means first of all defining your value proposition. And a brand like Nike has understood this for a long time.<\/p>\n

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Since 2015, the sports equipment manufacturer has created experiential loyalty around its branded merchandise<\/a> and programs such as the NikePlus program and a range of mobile applications, including Nike Fitness Club and Nike Run Club.<\/p>\n

The brand even has several promotional merchandise<\/a> and strategies, as it seeks to sell benefits, rather than products.<\/p>\n

Reinforcing Customer Loyalty through Recognition<\/h2>\n

We are at a time when customer reviews are one of the most important factors in a consumer’s purchasing decision.<\/p>\n

Hence, satisfying and retaining customers have become essential to sustaining and growing businesses. You can build loyalty by making your customers recognise with you in the following ways:<\/p>\n

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