Brand loyalty is often misunderstood by small business owners. They think that because they have loyal customers, their brand is valuable.
Not quite, because customer loyalty and brand loyalty are a bit different.
Loyal customers buy from you regularly, probably out of habit, because it’s convenient, or because the price suits them. When any of these factors changes, you risk losing them.
Brand loyalty, however, is when a customer has an emotional connection with a brand. It means they consistently choose your product or service over competitors. They stick with you even if your price is higher than a competitor, or if you move your business farther away.
Brand loyalty arises from reliability and consistency. People stay with a brand because they trust it. They know what they are getting. Think brands of shoes, for example.
Here is a real-life example of a small-time builder.
Peter had Bob build his house 10 years ago. A leak developed so he called Bob. Not only was the leak fixed without charge, but Peter and Bob both agreed it wasn’t caused by the building work.
On the strength of this story, a third person, Jack, called Bob who agreed to build Jack’s house. In the process, Jack noticed how skilled Bob’s workers were and the high quality of everything done. The whole experience was professional.
Ten years later, Jack wanted an extension to his house. He called Bob. He didn’t call anyone else and he didn’t get any quotes. Why?
It was not loyalty to Bob. It was not because he liked Bob or because his price was good.
It was actually because of the reliability and consistency of his work. It was because the quality of his work could be trusted. It was Bob’s brand.
