Do you know the reasons why customers form a sense of loyalty to a company or brand?
During the pandemic with its restrictions, fears, and uncertainty some customers maintained their loyalties to certain brands while others became open to trying new products. Identity loyalty is the reason why a customer will stick with a brand even amidst the most tumultuous circumstances.
Dr. Americus Reed of the Wharton School of Marketing, describes “identity loyalty” as the “psychological reasons behind why customers are loyal to certain brands or products”.
There are some companies that have successfully maintained relationships with their customers because they have developed an “identity loyalty” that transcends the typical factors that customers choose to do business with.
Typically this comes either from messaging that is affiliated with a particular company’s brand or the emotional attachment developed when doing business with the company. These products or services contribute to their overall sense of self. You can often see this when a customer is willing to pay money to advertise for their favorite companies. They will buy T-shirts, coffee mugs, and other swag that shows their fan status of the company. (Apple, Black Rifle Coffee, Tesla, etc.)
I know what you are thinking, how do you as a (small business owner) obtain that type of relationship with your customers when large companies have millions of dollars to spend on marketing and building identity loyalty?
The answer, my friend is simple. You do the same thing! When you build your company, make sure that you stand for something more than the product you are selling and that it is reflected in your brand. Create a connection between your products and services and what your clients value the most.
Remember that according to Reed, “the stronger the relationship of identity and self expression to the brand, the stronger the identity loyalty”.
At UPSHOT we start out with an analysis of who your client is and what makes them unique, finding the symbiosis between your client and your business. When you really know your client, the better you are at catering to your clients needs; and the more likely it is, that the client will do more repeat business with you.
A part of developing identify loyalty is creating the “it factor”. The “it factor” is that special quality that sets your business apart from your competition, that something special that makes people want to belong.
A word of caution… Don’t focus on the wrong qualities
There are many qualities (customer service, convenience, location, and cleanliness) that are critically important and should definitely be a part of a company’s DNA; however, these qualities are expected by customers and won’t bring about customer loyalty or create the “it factor” even for those who excel at them.
Remember to be careful in your attempt to cast a wider net in trying to be more things to more people as you risk diluting your brand and becoming less appealing to your core clients. Focus on the qualities that brand to your “it factor”.
Last piece of advice…
If you are still struggling with how to find your company’s it factor and develop identity loyalty, here is a simple three step process.
1. – Identify what your customer cares about. Here is a link to our tool to help you really flush that out and build a proper customer avatar.
2. – Provide your product or service to the best of your ability. This is not to be confused with the product or service you currently offer, but those qualities above and beyond that set you apart.
3. – Reflect in your marketing how you provide #2 to your customer.
We can help you with all of these steps or get you started with one of our amazing marketing strategies to better develop identity loyalty and build your company’s “it factor”.
