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 business, which can translate to increased loyalty and advocacy.
Why you should care about authenticity and loyalty
Authenticity helps a brand connect with customers on an emotional level. When customers feel a brand is genuine and honest, they are more likely to form a personal connection with it. This increases loyalty, as customers will choose a brand they trust over one they see as generic.
A brand with strong loyalty is less vulnerable to competitors or price pressure. Loyal customers also have a significant impact on profitability. Research from the Harvard Business Review found that acquiring a new customer can cost five to 25 times more than retaining an existing one, and increasing retention by 5% can increase profits by 25% to 95%.
Loyal customers are also more forgiving of mistakes and are often willing to pay a premium for brands they trust. Loyalty drives advocacy, referrals, social engagement and word-of-mouth — all of which help brands reach new audiences and accelerate growth.
One of our Marketing Specialists worked with a brand that was first to market and initially successful, but gradually lost its leadership to competitors who copied its products and outspent them in advertising. Although the product was good, the brand lacked emotional relevance and authenticity.
Our Specialist worked with the cross-functional team to uncover the company’s values, purpose, key attributes and history. They led a repositioning campaign that defined a clear point of difference and brought the brand’s purpose to life in a more relevant and authentic way. The brand regained market share and returned to the number one position despite spending less on advertising than its competitors.
How do you build authenticity?
An authentic brand is one that is true to its values and consistent in how it behaves. When our Marketing Specialists work with businesses, they focus on six core areas:
- Understand your key customers, their needs and their values.
- Define your brand’s purpose and point of difference in a way that is relevant to your target audience.
- Be consistent in messaging and behaviour so that everything aligns with the company’s values.
- Be transparent. Communicate openly and honestly with customers and stakeholders.
- Engage with your audience. Listen, respond and build relationships with communities.
- Stay true to your brand. Don’t imitate competitors or try to be something you’re not.
Building authenticity takes time and is an ongoing process. It is an essential part of creating a strong, relevant brand.
If you need help repositioning your brand to deepen relevance and build authenticity, we can help you create a brand that attracts new customers and strengthens loyalty to support sustainable revenue growth.
To book a free consultation with one of our Marketing Specialists, click here.
