Simple Principles in Understanding and Gaining Brand Loyalty

Any discussion on “brand loyalty” should begin with a definition of the term “brand”. What is a brand? A brand is more than just a fancy logo and packaging of products. It is also more than just unique intellectual property. In the article “How to define your brand and determine its value” brand consultants David Haigh and Jonathan Knowles point out that a “brand refers to the whole organization within which the specific logo and associated visual elements, the larger bundle of ‘visual and marketing intangibles,’ and the associated goodwill are deployed.” (“How to define your brand and determine its value”, David Haigh and Jonathan Knowles, Marketing Management, May 2004) So a brand includes a specific logo and packaging but also includes what the authors call visual and marketing intangibles.

    These visual and marketing intangibles include but are not limited to: knowledge intangibles, business process intangibles, market position intangibles, and brand and relationship intangibles. In short a company’s brand could be described as its personality, character, and unique experience. If you are struggling to develop your own brand then start treating your company like a person. It needs its own unique identity and personality. By applying this idea you can also develop loyalty for your brand. You can do this by thinking about different positive and negative traits or characteristics possessed by people you know and then think of how your company can either adopt or avoid these different characteristics. Following are 3 examples of characteristics that companies must adopt in order to build brand loyalty.

1. Loyalty – Everyone wants loyal friends. If you want your customers to be loyal to your company than be loyal to them. In his article “The Loyalty Paradox” Don E. Shultz points out that, “Simply put, marketers want customers to be brand loyal – but marketers commonly fail to be loyal to their customers.” (“The Loyalty Pardox”, Don E. Schultz, Marketing Management, Sep. 2005) Realize that customers will never be loyal to your company if you never show your loyalty to them. Companies show disloyalty in many different ways. One such way is by constantly changing your logo, packaging, and price structure. Another way a company shows disloyalty is by offering new customers better terms, conditions, or prices than existing customers. After lowering the price of the iPhone, Apple showed loyalty to their customers by offering a $100 gift card to those who had purchased the phone at the higher price. Before asking your customers to be loyal to you, be loyal to them. Write down some ways in which you can show your loyalty to your customers.
2. Strong Sense of Identity - Most people are naturally drawn to those people who know who they are, what they stand for, and know where they are going. Too many companies have skipped this very important step in developing their brand. If someone asked you what your company does would you be able to give a clear and concise answer in less than a minute? Before you can brand yourself you need to sit down and think about what you want your company to stand for and what its purpose will be. Otherwise everyone in the organization will have their own plan for where the company is headed. Write out a plan of what you want to achieve and how you will achieve it.
3. Character – Great organizations are built by people with great character. People who are willing to do what is right no matter the cost. In building brand loyalty this same principle applies and so remember to be true to your customers no matter the cost. If you make a mistake, admit it and fix it. If the leaders of an organization will act with great character then the company will develop a strong character as well. People will be drawn to your honesty and fair treatment of customers.

When you are building brand loyalty be sure to think of your company as a living organism that will take on the characteristics that you want it to adopt. Choose to build qualities that will appeal to your customers. Building loyalty to your company is all about building stronger relationships with your customers. This will only happen if your company develops the characteristics that will encourage the development of those relationships.