Do We Pay for the Brand or the Quality of the Product?
The retail industry has come a long way. Thousands of brands have entered the space, giving customers a variety of options to choose from. However, many customers still prefer to buy from a few selected brands, regardless of the product’s price and quality. So, is it safe to say that people pay for the brand rather than the product’s quality?
People Look for Quality First
No person will buy from a brand if the quality isn’t good. Whenever someone looks for a product, they prioritize quality and pricing. Other factors like ease of use and customer service may also matter. Overall, they look for value for money. If they pay $1500 for a laptop and it lives up to the quality expectations, people will buy from the brand again.
Transition to a Loyal Customer
The first few purchases are the testing period for a customer. If they buy a product and like it, they’ll buy from the same brand again. If they keep getting a good experience, they’ll enter the stage of customer loyalty. Now, if that brand launches a new product, they’ll buy it without doubting its quality.
A loyal customer is a customer who trusts a particular brand. Many brands, such as Apple and Nike, have loyal customers. For instance, Apple releases a new iPhone model every year. And let’s face it, there’s not much that changes. Apple products are slightly overpriced, and there are various other mobile phone brands that offer better features at a lower price.
However, since Apple customers are loyal to the brand, they’re willing to pay a premium to get Apple products.
Nothing Is Permanent
Loyal customers are a luxury to have for brands. The customer acquisition costs decrease, and customer retention increases, resulting in better profitability and business growth. That said, nothing is permanent. Customers who are loyal to a brand won’t mind switching to another brand if the latter doesn’t deliver.
Therefore, companies with loyal customers need to keep up with their customers’ expectations. For instance, Apple knows what its customers need and adds it to its products. Apple users prioritize durability, performance, security, and a premium feel. Apple offers it all, and that’s why customers stick to the brand.
How to Create Customer Loyalty?
If you’re a new brand, you must be wondering how you can get loyal customers like Apple and Nike. Here are a few tips you can follow.
- Clearly communicate your values
- Prioritize customer service and satisfaction
- Reward your loyal customers and turn them into advocates
- Create a loyalty program to appreciate your loyal customers
- Ask for feedback and act upon it
- Keep giving your customers something new
Conclusion
Customer loyalty isn’t an easy thing to achieve. Some people pay for the brand and not for quality. That’s why Nike shoes are expensive, and people still buy them. In this competitive landscape, businesses should prioritize customer loyalty. However, keep in mind that building customer loyalty takes time and effort. You’ll need to engage your customers to continue to turn them into loyal customers.
