Thanks to E-commerce, today’s ever-changing world has left consumers overwhelmed with options for purchasing products varying in price and quality from around the globe. As an example, if you are looking to purchase a phone case, there are thousands of options readily available for purchase. In today’s world, product categories are becoming extremely dense as companies continue to develop close substitutes for existing products in an attempt to acquire market share. Given that consumers often make a purchase decision based on convenience or price, brand loyalty is vital in keeping customers coming back you, and not the competitor.
Brand loyalty is becoming more and more important as the number of options to the consumer continues to increase. Products are no longer only competing with the ones on the same shelf as them, they also have to compete with the millions of products readily available online through giants like Amazon. A company’s points of parity allow it to play the game, however it is the company’s points of difference that allow it to win the game. In other words, firms across the globe are able to put products up for sale, however it is what makes you unique that sets you apart and wins you the market share. This is one reason why firms are placing greater importance on areas such as customer service, post-purchase experience, community engagement, and social responsibility. Success in these areas will, in the eyes of the consumer, create more of a lasting and positive impression which ultimately leads to customer retention, which is the most effective way of maintaining and gaining market share in today’s world. A customer who has developed loyalty to your brand is likely to forgive a billing error or customer service fumble, whereas a customer without brand loyalty is likely to switch to one of the many competitors seeking the customer’s attention.
Amazon’s points of difference put them on a playing field of their own. The firm incentivises current, and new users through uncommon offerings such as same-day delivery service and free 2-day shipping. By offering these services, Amazon has set themselves apart from competition such as eBay, and today Amazon ranks second in the world in terms of overall customer loyalty. This goes to show that setting your brand apart from others, whether that’s through one-of-a-kind offerings, or superior customer service, will lead to increased brand loyalty. Brand loyalty, as shown above, is the key to maintaining and growing your market share in a world where competitors from around the world are vying for your business.
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Photo:
Hendrickson, Noel. Coconut oil is out. These are the oils you should be using, experts say. 2017, Getty Images . https://www.usatoday.com/story/news/nation-now/2017/06/20/coconut-oil-out-these-oils-you-should-using-experts-say/412393001/.
