Marketers commonly cite the Pareto Principle as a reason to increase brand awareness and loyalty. Initially thought up by economist Vilfredo Pareto in 1869, this “law of the vital few” notes that in most events, 80% of effects come from only 20% of the causes. In marketing, that tells us that 80% of future revenue will come from 20% of customers. Consumer loyalty is critical for CPG brands but high competition makes it difficult to establish and maintain.
Marketing strategies that travel with the consumer allow brands to connect with those who will drive a product’s success. Transparent and socially conscious policies have the ability to establish a brand as a trusted resource and improve brand affinity. With an authentic presence and a robust mobile marketing strategy, brands can reach a broader audience and strengthen loyalty. Here, we explore three ways to increase brand awareness and loyalty.
How Companies Can Increase Brand Awareness and Loyalty
- Provide In-Store Incentives for Establishing Brand Affinity
Free samples and coupons have long been popular ways of driving awareness in the aisle, but these programs aren’t always scalable. Smartphones allow brands to offer more flexible deals but may do little to guide consumers through a purchase. Ideally, brands can use rewards points which require no upfront discount to guide consumers down the path to purchase in the store. Using Shopkick as an example highlights how such an incentive program works.
- Engage with consumers immediately. When the consumer approaches a location and has the Shopkick app installed on their phone, they receive rewards points just for walking through the door. The app acts as a virtual greeting.
- Guide consumers to products with a digital scavenger hunt. The consumer can access a listing of participating products where rewards points are available without purchase. The no-cost incentive gives them reason to seek out the product in the store.
- Prime consumers for sale with UPC scanning. When the consumer scans a product’s UPC with their phone’s camera, they receive points. This action primes them for sale and makes them more likely to buy the product.
- Inspire loyalty with purchase rewards. After purchasing the product, the consumer can scan their receipt and gain additional points. The entire positive experience encourages the consumer to remember the brand and consider them during their next shopping trip.
Shopkick allows brands to connect with larger audiences than they would be able to otherwise. Through these apps, brands can deliver incentives without relying on discounts and enhance the customer shopping experience. A mobile strategy designed around a shopping app can help brands build audiences and cultivate long-term loyalty.
- Leverage Social Media to Heighten Customer Service
Today’s consumers don’t handle their complaints behind closed doors. Instead, they take to social media sites like Facebook and Twitter to vent their frustration. While the old rule of thumb was that a dissatisfied customer would tell at least ten people, today they can tell millions with one viral Tweet. However, while there is a risk, there is also an opportunity.
Brands that deliver high-quality customer service transparently can establish trust with more than one single consumer. Responses on social media humanize the brand for the audience as a whole, which makes them more willing to try future products. Brands that wish to build loyalty should consider increasing customer service efforts on social media and encouraging consumers to reach out on these platforms. Through this, they can assist one customer while potentially gaining the attention of thousands.
- Cultivate Authenticity to Increase Brand Awareness and Loyalty
One way a brand can gain the attention of audiences and inspire loyalty is to align their values with their target demographic. Campbell’s is an excellent example of a socially conscious brand. The company has multiple sustainability and transparency initiatives in place. As today’s consumers are very socially aware and conscious of what they put in their bodies, these initiatives align Campbell’s with its diverse audience.
As the most loyal consumers will drive the majority of sales, striving to increase brand awareness and loyalty is imperative.
One area where the brand has made great strides is in its commitment to improving animal welfare. Campbell’s set goals of sourcing all eggs from cage-free chickens by 2025 and eliminating the crating of pigs by 2022. They also established a model for sourcing meat which eliminates those treated with antibiotics at any time, from incubation to processing. These efforts put Campbell’s in a positive, authentic light which drives consumer trust.
As the most loyal consumers will drive the majority of sales, striving to increase brand awareness and loyalty is imperative. Brands should make efforts to incentivize consumers in the shopping aisle and assist them on social media to reach greater audiences and establish brand affinity. Sharing information about corporate responsibility initiatives also cultivates consumer trust. Brands must understand what is important to consumers today and then make efforts to deliver if they want to establish a loyal following.
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