The brand pyramid - building customer loyalty [LINK]

Recall that in Topic 1, Step 5, we discussed how a company can categorise customers into four relationship groups based on their loyalty and profits: strangers, barnacles, butterflies and true friends?

Today, I came across an interesting article that also correlates customer loyalty with their profitability, but in a much different way. The article describes how customers have different levels of loyalty at 5 key stages on a pyramid like the one below.



The higher customers are up the pyramid, the more money they're likely to spend with your brand.

So, companies should aim to move customers up to the higher levels of the pyramid.

But how do companies do that? The article gives practical advice such as the one below:

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Performance (Level 3)
Here, customers begin comparing the brand with others, to see whether it delivers on its potential. It is now on the customer's "shortlist".

To reach this stage, you need to show that your brand is better than your competitors' brands.

Ensure that your marketing materials give customers the information they need to compare your product with competing products. Depending on your audience, show your customers how much better your brand or product is by communicating its benefits rather than its features.
If you haven't already done so, conduct a USP Analysis, which will help you identify your brand's uniquely valuable features."

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Great article really, so
spend some time if you have some interest in marketing and want to learn how to build customer loyalty. :)

http://www.mindtools.com/pages/article/brand-pyramid.htm#np


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