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The Battle of Brand Loyalty vs Customer Loyalty: Which One Should You Focus On?

Many businesses make the mistake of focusing on brand loyalty rather than customer loyalty. Although many companies believe that this is the way to go, it actually could be hurting your business more than helping it. So what’s the difference between these two? And why should you focus on customer loyalty over brand loyalty? Let’s find out!

Brand loyalty means the customers remain stick to the brand no matter what is the price of that product. On the other hand, Customer loyalty gets affected by the products quality, price and other discount programs. A customer makes a switch to another brand if he finds the same product in a competitive price somewhere else.

Understanding customer loyalty

Understanding your customers is at once a science and an art. Companies that win in terms of customer loyalty usually have a holistic understanding of what drives their customers to purchase from them over and over again. This means understanding their emotional connection with your brand, as well as how they see you in relation to other brands out there in your industry. A deep understanding can be very powerful.

Why does brand loyalty beat customer loyalty?

The sad truth is that many people are either brand loyal or customer loyal; it’s rare for a person to show loyalty to both. Therefore, if you can find a way to get your customers more invested in your brand, they will be less likely to go anywhere else. But how do you accomplish that feat? Check out our guide below. How to achieve brand loyalty over customer loyalty: We know what you’re thinking: How am I supposed to get my customers attached at the hip with my company when I don’t even have any products yet? Rest assured, there are plenty of ways! 

For example, offer up unique rewards and perks exclusive only to those who choose your company over all others. 

Give away freebies like coupons and special discounts on future purchases—even free merchandise—to loyal customers as a reward for their support.

Is there a way to achieve both brand and customer loyalty?

Both types of loyalty are important, but you shouldn’t expect them to do the same thing for your business. While brand loyalty makes customers more likely to purchase your products and spread positive word-of-mouth referrals, customer loyalty inspires repeat sales from loyal buyers. Choosing which one to focus on will depend on how you plan to build a sustainable business.

Why would you want to encourage only customer loyalty over brand loyalty?

By encouraging only customer loyalty, you are essentially asking your customers to follow one simple rule: buy from us. And that’s it. Sure, you could try to be a big company and make them follow more rules (like buying something every week), but why would they care enough about your brand to do that over any other company with products just as good (or better) at a lower price point? Asking for too much is a sure way to turn your customers away.

Does this mean that brands don’t matter anymore?

There’s a common misconception that social media has killed brands. In reality, customers care about both. Brands allow customers to identify with and trust in your product or service quickly and easily. Social media allows them to connect directly with you and spread their love for your brand. Brands are an important part of any business, but they aren’t going anywhere anytime soon—so don’t be afraid to continue building yours!

Conclusions on creating brand loyalty over having an overall customer focus

If you are a startup, brand loyalty isn’t something that you should be focusing on initially. It takes years to build up brand loyalty, and it will come from your product or service itself rather than from marketing efforts. However, if you want to start building a loyal audience for your business now, then focus on customer loyalty and make sure that they are happy so that they return time and time again. As long as they remain loyal customers who keep coming back, then everything else should fall into place over time.

As an entrepreneur, you may be inclined to focus on one or the other of these two types of loyalty. However, it’s important to know that they aren’t mutually exclusive in your efforts to build and grow your business, as both can benefit your organization – or even pose threats to it if not handled properly. It’s important to strike the right balance between brand loyalty and customer loyalty.