How does a company become a brand? How do you create trust and loyalty? More importantly how do you keep it?
50% of customers would pay a 35% premium before switching brands. Loyal customers spend 33% more than new customers.
The probability of selling to a new customer is 5-20%, selling to an existing customer is 60-70%.
Customers with an emotional connection are 4 times as likely to do business with it. The most loyal 10% of customers often generate 50% of revenue (dependant upon sector).
What this can mean:
A 2% increase in loyalty = 10% reduction in costs.
A 5% increase in customer retention = a 30% increase in profits.
A 5% increase in loyalty = 95% in profits over a customer's lifetime.
These are some great insights from M Neumeier, The Brand Flip (worth a read).
Now you have your 'why'- your goals, what is your 'how'?
Ask yourself what the intangibles are that add value to your business, product and/or service (authenticity, availability, simplicity, belonging, style, symbolism etc.). Any effort to get customers is marketing, keeping them is branding.
Hopefully this can help you understand the importance of a marketing & branding strategy and why it's an ongoing, flexible, living thing, growing and adapting with your business.
Ask yourself:
What is my current brand experience?
What do I want our brand experience to be? What could it be?
How do we get from where we are to where we want to be?
What will your journey look like?
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