Branding – A Key to Consumer Retention

Not too long ago, brands weren’t much of a concern to consumers. The consumer was objective: they analysed the value of each item or brand based on its monetary value as well as its intrinsic worth or self-benefit. However, in a market saturated with competition, consumers are increasingly relying on secondary, subjective factors to make decisions when considering a brand. They, whether consciously or unconsciously, form their opinions of brands by analysing the reputation and vibe of that particular brand.

This is where retention comes in.

Information that closely aligns with consumer needs, beliefs, interests, and values is more likely to be retained. Continuing with the movie hypothetical, a dog lover is more likely to recall the trailer for a movie about a dog than a cat lover.

Why is consumer retention important?

Branding is not a new strategy in consumer retention but it’s definitely one that needs a bit more attention. It’s the notion that having ten brand aficionados is far more valuable than 100 loosey-goosey consumers. You may only sell to 100 flaky consumers once in a lifetime, but you will sell to your brand loyalists again and again. They may buy for themselves, for their kids, for their neighbour, for their aunt, and maybe (just maybe) even for their dogs.

Consumer retention, however, refers to how your consumers remember brand messages based on their previously established needs, beliefs, and interests. According to a study, 79% of those surveyed agreed that brands whose values align with their own are more likely to sell them products.

A brand without retention is simply pushing the consumer into your funnel, through the checkout line, and out the back door. This is a crazy idea, but it’s the trick many brands fall into when viewed from that perspective—throwing money at brand-new eyes and potential consumers instead of focusing on lifetime consumers.

Here’s everything you need to know about consumer retention and a few branding tips.

1. Trust is everything

It is essential that consumers believe in and trust the brand before trying to convince them to consider it. The brand will be outcompeted if they like the approach but do not trust the brand’s integrity. It is far more important to maintain integrity and transparency when building long-term relationships with consumers. And when they notice that you notice they frequent your brand, then relationships begin to move beyond business and buyer to brand and friend—that’s when you’ve struck gold.

2. Credibility matters

Your consumer trusts each other more than they trust you. Nowadays, consumers have a plethora of information at their fingertips. By going online, they can easily find third-party reviews for your brand or company.

Thus, the power of branding is no longer as strong as it once was, as it now fights for attention among other third-party reviews and opinions too. Hence, if you want your brand to stay strong, it is equally important that the brand portrayed by other viewers is strong as well. The consumer now knows that the brand will say and do anything they have to in order to elevate their brand in the market.

Therefore, an unbiased review, on the other hand, holds a lot more credibility than any statement from your brand will.

3. First impressions are key

As the old adage goes, first impressions are irreplaceable. Are you making a good first impression by providing a great set of first experiences for your newly acquired consumer?

Having made the first impression, it is really hard to shake it off. Your first impression with your consumer—whether it is an advertisement, an experience, or a trial—must reflect your brand and best intentions. Despite your best efforts, replacing a first impression is very hard. Therefore, everything you do and everything your company portrays externally should be reflected in your brand as well.

4. Do what you say you will do

Keeping promises isn’t just about doing what you say—it’s about saying only what you are capable of doing. The promises you make should be assertions of fact based on what you know you will accomplish, so you shouldn’t worry about keeping them. In order to maintain your brand, be humble and transparent, and always take care of your consumers. Know your capabilities and incapabilities, and be willing to share both equally and openly with your consumer. Keeping promises, both those in service level agreements and those implied by the brand, contributes to brand value.

5. Consumer support is crucial

Great consumer service can improve retention and repeat business. Once the sale takes place, don’t just walk away from the deal. The support you give shows your true character as a brand. Consumer support also bodes very well for gaining new referral business. Growth happens organically when it happens best; thus, great consumer support is essential.

Based on a recent survey, 91% of consumers trust online reviews just as much as word-of-mouth recommendations, and 93% of online consumers say their buying decisions are influenced by online reviews.

If your brand has a reputation for good service and positive reviews from consumers, this can be a great branding asset.

Real-world brand retention example

Now, let’s look at retention in action. Here is the most known real-world example you’ve probably already encountered—and of course, it is not at all pushy:

X-Box’s achievement points

Xbox does an amazing job of keeping its community engaged and coming back for more. Earn points by playing games, doing cool things, and redeeming them for discounts. Repeat.

Everything from achievements to friend lists to notifications entices users to log in and rack up hours playing games. This is an amazing user experience that keeps the community challenged and is a great moneymaker for Microsoft.

That’s retention done right—and it probably doesn’t even feel like “marketing.”

There’s no doubt in the fact that branding has become a vital part of ensuring consumer engagement, increased conversion rates, and better chances of retention. By sticking to a unique identity that the brand can live by, it becomes more successful in connecting with its consumers.

According to research, consumers who continue to support your brand over time will spend 60% more than new potential consumers. It would also be a mistake not to recall another old adage: it costs 6-7 times more money to acquire a new consumer than it does to keep an existing one.

So, are you jazzed about getting started with consumer retention? Right on! It’s probably now time for you to decide what to do next.

Fortunately, we are just the thing!

Sure, If you’re just using punch cards, you won’t need much. However, for insightful strategies and branding, schedule a free 30-minute call with us today