Loyalty

VOL. 0005 – FLORIDA, MONDAY, SEPT 5, 2022

Juan F. Arjona Harry

President & CEO Strategee

We all know that it is vital for a brand and company to maintain loyal consumers that make its operation predictable in a market. What is really key is how to achieve it in a competitive environment in which precisely the dynamics is a permanent unpredictability in both channels, aggressive competitors and constant offers.

Consumer loyalty is typified when, in a constant and permanent relationship, the positive assessment of the brand leads to repeated purchases of the product or service, accompanied by positive evaluations of its performance. Ultimately, repeat purchase and consumer preference is a conclusive statement that a brand has earned the loyalty of its customers.

The loyalty of customers or consumers has been measured with combined measures between satisfaction with the purchase, the positive evaluation of the experiences with it and the belief in its communicated values.

Purchase loyalty is transcendental, because it increases profits, decreases the costs of acquiring new customers, increases the average ticket and finally increases conversion rates compared to what these same conversion rates of new customers are.

But there are different styles of loyalty or behaviors that express this loyalty of customers and consumers, and they are:

1. Consumers happy with your offer or brand: in this case, they are consumers who have highly valued your offer and brand, but who would also be willing to try others if they offer the same.

2. Consumers loyal to the price: they are those who will always be driven by the price or value relationship found. They will be able to leave if they find another offer with a better Value for Money, but they will still return if your offer or brand offers them a higher value in the Value for Money equation.

3. Loyalty consumers to a loyalty program with points and benefits: these consumers are loyal to your loyalty program; they are loyal to the rewards, points, and special deals they receive from your program. They might also be loyal to your brand's suite of deals, prices, and discounts.

4. Loyal consumers for convenience: they are those who find your brand easy, they find it everywhere, for them the level of services and availability are as key as the price.

5. Consumers who are loyal to their additional benefits that increase added value: these consumers value different treatment more highly, earning special experiences and services for them.

6. Really loyal consumers: they are those consumers who become serious defenders of your brand, recommend the brand to their own and strangers and have it so internalized that it is difficult for them to access it when faced with other offers.

How to measure loyalty?

Next, we will be able to see how to measure consumer loyalty and the final state that your brand, product or service must reach.

1. NPS: using this indicator, the greater the resulting difference between consumers and detractor consumers, the greater the degree of loyalty measured.

2. Repeat purchase: by tracing consumer purchases when they demand the category, their reactions to offers and special prices and discounts, it can be concluded that they are more loyal to your brand.

3. Involvement with your brand: through this measure, the interactions that the final consumer has with the digital communications of your brand are calculated, the likes that they grant, the re-posts that they make, the responses to direct messages and comments that they make about of your brand.

4. Customer Lifetime Value: it is the final result of the value that a consumer will leave to your brand, company or product during the time horizon that he would remain loyal in the purchase of your brand; Generally, for its calculation, a number of variables not determined in a standard manner are taken into account [such as the value purchased per purchase occasion, age, payment method, payment term, geo-demographic metrics, recency, size of your average ticket, among many others], and through an algorithm that estimates in the future time, produces the result of the CLV.

As digital deepening evolves, coupled with the extremely high availability of products and services, it becomes necessary for brands to build what is called Brand Reputation. She brings together several of the aspects that make a brand touch with its audiences, making Brand Marketing necessary to ensure that Brand Reputation -which is the second most reviewed factor today in the purchase decision of a new or repeated consumer- is a good reputation.

About 55% of consumers are willing to share their data with trusted brands and about 70% are drawn to like, repost and share brand information with their stakeholders.

Unquestionably, working on brand reputation is key to ensuring loyalty.

At Strategee we implement strategies and tactics for our clients that ensure the path to achieving full brand loyalty.Close to 55% of consumers are willing to share their data with trusted brands and close to 70% are drawn to like, re-post and share brand information with their stakeholders.