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It’s no secret that in recent years, brand loyalty has started taking a nose-dive. According to McKinsey Research, only 13% of consumers in 2017 are brand loyalists who don’t shop around. And for the other 87%—well, they are utilizing other options. The evolution of the Internet has effectively tipped the power in favor of the consumers. And with a bastion of options readily available to online shoppers, consumers are now letting go of loyalty in favor of cheaper prices found elsewhere.
But the success of all ecommerce outlets is dependent on customer retention and loyalty. So, how can you combat this decline in loyalty? It starts with making sure your company’s brand strategy is doing its job. This means taking a look at the changing needs and wants of your consumers and considering an effective rebrand for your company. But before launching into a full-blown rebrand scheme, there are some important factors that need to be considered.
Before mapping out your entire rebrand strategy, you first need to establish the purpose of the rebrand. Why does your company need to rebrand itself now? If the answer is simple: your company is no longer converting customers into loyalists; ergo, it’s not growing at the rate you’d like it to—that’s fine. But you need to dig a little deeper in order to figure out the root cause of your rebranding strategy. So, why don’t you have a solid base of loyal customers?
For most companies, a lack of loyalty means that your brand is no longer evolving with the marketplace. Your brand’s message is no longer connecting with your customers. Hence, it’s most likely time to revamp your message.
Developing a clear message is paramount to establishing your brand’s identity. This is your rebrand starting point and should be an important focal point of nearly all digital marketing strategies. But in order to develop a successful message, you need to get inside of your consumers’ heads, a bit. Figure out what makes them tick. What do they want, and what are they looking for in a brand?
Consumer wants and needs morph right alongside cultural changes. Perhaps the decline in brand loyalty is symbolic of the fact that “being loyal” is no longer all that culturally relevant.
In the past, loyalty was valued and ingrained in most, if not all, institutions. Climbing the corporate ladder and devoting your entire life to one company was a noble and highly sought after position. But for new generations, it’s all about exploring your options.
You’d be hard-pressed to find a millennial with aspirations of finding a tenured-track profession. People of the past, married young, bought a house, built their picket fences, and settled down for the long haul. Now, however, more than 50% of millennials grew up with divorced parents, and more than 41% grew up with parents who were never married at all. Blended families and unconventional upbringings are the new norm.
For modern consumers, “new” is better than “known,” writes Forbes contributor Go to the full article.
Source:: Business 2 Community