It’s what companies – in the US alone – spend billions seeking to achieve. It’s what accounts for a good portion of any business’ marketing budget: brand loyalty. Companies all over the world are working tirelessly to win over consumers who are there to stay and who will continue buying from them.
In a recent report from Accenture, it shows the following results as it pertains to the US market:
- 66% of US consumers spend more on brands to which they are loyal
- 55% recommend brands or organizations to which they are loyal to their family and friends
- 72% of consumers will pay more if it ensures higher levels of product options and/or quality
This report is just one of many that validate the value of brand loyalty. While there are some consumers that are brand-agnostic and who simply look for the best deal, brand loyalty is becoming an increasingly important factor in being a big competitor in your industry.
As I have mentioned previously about the marketing mix – promotion in particular – understanding who your market is and what they value is key to building a brand that will resonate with them. In Vietnam, for example, about 70 percent of the population lives in small towns and rural areas. THP works hard to utilize that section of the Vietnamese market and be their beverage of choice. We compete for 100 percent of the market, whereas multinationals effectively compete for 30 percent.
Our hope is to connect to the market in such a way that as those areas develop, urbanize, and those populations migrate to bigger cities, they will take their preferences with them. As a local company, we are able to leverage insight into both national and regional levels – events, sentiments, and preferences – allowing us to accomplish far greater resonance among the local population.
One of the core aspects of successful promotion is incorporating your brand into the lives of your consumers both directly and indirectly. Sponsorships, community events, and charity work are great exercises in brand-building that go beyond the traditional direct advertising. This has been a long-time strategy for THP in our efforts to know our market and foster a loyal relationship with those consumers.
In 2008, THP set up and sponsored the first and only Vietnamese team to conquer Mount Everest. A national flag and a flag bearing “Number 1” were planted at the top. We nurtured our relationship with the community and strengthened our brand by not only promoting a quality drink, but promoting the impressive efforts of those from our community, region, and country.
Your company’s brand is important. It takes on a personality in and of itself and represents the products you are trying to sell. Give your company life and give your market a reason to be loyal to you through personal and relevant promotion. Doing so will make a significant difference to the livelihood of your business.
Visit my website to learn more about fostering brand loyalty.