Building a strong brand requires two major elements: relevancy and authenticity. Last week we shared how relevancy will impact your ROI. Relevancy is essential, but without an authentic brand behind it, customers won’t develop loyalty. We find that many businesses overlook the importance of authenticity. A brand needs to be authentic and relevant to build trust and credibility with consumers. When a brand is perceived as authentic, customers are more likely to have a positive perception of the brand, which can lead to increased loyalty and advocacy.
Why you should care about authenticity and loyalty?
Authenticity can help a brand connect with customers on an emotional level. When customers feel that a brand is genuine and honest, they are more likely to form a personal connection with the brand. This leads to increased loyalty, as customers are more likely to choose products from a brand they feel a connection with over those from a brand they perceive as generic.
A brand with strong loyalty is less vulnerable to competitive entries or price wars. More than that, loyal customers have a significant impact on a company's bottom line. Research from the Harvard Business Review found acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. The same study found that increasing customer retention rates by 5% increases profits by 25% to 95%.
Not to mention that fact that loyal customers are more forgiving of mistakes and are willing to pay a premium for products from a brand they trust and prefer. Brand loyalty leads to increased advocacy, referrals, social media engagement and exposure – all of which will allow a brand to reach new customers and accelerate growth.
One of our Marketing Specialists worked with a brand that was first to market and had strong early success but had lost market leadership due to competitors entering the space, copying their products and outspending them in advertising. Although they had a good product, there was no point of difference or emotional connection with the brand. It was lacking authenticity.
Our Specialist worked with the cross-functional team to understand the company’s values, brand purpose, key attributes, and history to truly define the brand’s purpose and point of difference. Our Specialist lead a re-positioning campaign to bring the brands purpose life, resonating with the target audience in a relevant and authentic way and that differentiated it from key competitors. As a result, the company regained market share and rose back to the number 1 position despite lower advertising spend than its key competitors.
How do you build authenticity?
An authentic brand is one that is true to itself and its values. When our Marketing Specialists work with businesses, they focus on six key areas for building authenticity:
- Understand your key customers, their needs and values.
- Clearly define the brand's purpose and point of difference that’s relevant to your target: What does the brand stand for and what is its purpose?
- Be consistent in the messaging and actions: Make sure the branding, marketing, and actions align with the companies’ values and mission.
- Be transparent: Communicate openly and honestly with customers and stakeholders.
- Engage with the audience: Listen to and address customer feedback and build relationships with communities.
- Be true to the brand: Don't try to be something you're not or copy other successful brands.
It's important to keep in mind that building an authentic brand takes time and effort and is an ongoing process. It is a critical component (along with relevancy) to creating a strong brand.
Do you need help re-positioning your brand to focus on what is relevant and create authenticity? We can work with you to build a strong brand that wins new customers and reaps the rewards of loyal customers, providing your business with a sustainable revenue stream.
To book a free consultation with one of our Marketing Specialists, click here.