Sales Holidays for Small Businesses
Black Friday and Cyber Monday are the star holidays of the season, but they’re not the ONLY holidays. Here are lesser known holidays for your business to celebrate this year.
Two types of loyalty are fundamental to businesses: customer loyalty and brand loyalty. While they're two separate concepts, the common denominator is that they're both indispensable to customer retention. Let's go over customer loyalty vs. brand loyalty — the difference between the two, and why they have to be addressed in distinct ways.
Customer loyalty is born from excellent customer satisfaction — it’s when a customer has such a positive experience with your brand and products, that they’re willing to buy or work with you time and time again.
Brand loyalty happens when a customer identifies with your brand on a personal level. They either consciously or unconsciously purchase from your brand repeatedly because they know your products or service will meet their expectations.
The main difference between these two loyalty types is that customer loyalty revolves around customer spending, and brand loyalty is all about customer perception. Customer loyalty can be formed by having lower prices than competitors or better discounts and rewards programs.
With brand loyalty, pricing isn't as big of a factor — customers feel that your brand is trustworthy and high-quality compared to all others. Customers with brand loyalty are more likely to try out other products from the same brand, regardless if they're more expensive or not.
While these distinctions are subtle, they can help provide a higher return on investment (ROI) if they’re both consistently built over time.
Brand loyalty requires less effort to maintain once established. If your product and service quality remains the same throughout time, customers won't be motivated to scope out your competitors. While brand-loyal customers don't usually purchase as many items, the profit margins on the things they do buy are generally larger.
Customer loyalty requires more work, in that you’d have to put more effort into establishing promotions, rewards programs, and more.
In the grand scheme of things, it's not a matter of customer vs. brand loyalty because they're equally crucial to your business. Acquiring new customers can cost five to seven times more than retaining existing customers.
Below are some tips on how to target both so that you can combine the two concepts.
Now that you know the distinctions between customer loyalty vs. brand loyalty, it's time to learn more about customer marketing strategies.
Last updated on August 16th, 2022.