Brands and consumers have different relationships than people. Some people you care deeply about and others you depend on. Understanding the differences between these types of relationships is crucial for marketers to be able to effectively deal with customers.
Marketers who understand this will be better able to retain customers and improve the perception of unhappy consumers about a brand’s product or service.
One type of relationship between consumer and brand is when people are drawn to the brand primarily because they have a common economic interest. Walmart is an example of a brand that attracts customers based primarily on value and price. According to researchers, a “communal relationship” is a relationship where consumers feel connected to a brand through trust, caring, and partnership. State Farm is a good neighbor, as an example. “
Tip Branding and marketing strategies are key to establishing a relationship with consumers.
What’s a brand-customer relationship?
A relationship between customer and brand is unique. It can lead to positive outcomes for both. Customers build relationships with brands and view them as friends. Customers become more connected to brands and they gain meaning and value.
Brand loyalty is built when a brand builds trust with its customers. Customers will only be loyal to brands if they feel they can trust the product. These relationships must be built by companies. This is just the beginning. The next step is to continue and grow the relationship. Customers want to feel satisfied, whether the product fulfills a need or they are loyal to it. Both types of customers might exist, so you need to find ways to appeal both to them. You must ensure that your product meets the needs of your customers and is reliable and high-quality.
The way consumers respond to brand experiences, both positive or negative, is determined by how they feel about the brand.
Pankaj Aggarwal (a marketing professor at The Rotman School of Management, University of Toronto Scarborough) and Richard Larrick of Duke University tried to evaluate brand value after an unfair transaction in 2012. These results are still valid today, and depend on whether the consumer was exchanging brands or being part of a collective one.
Aggarwal and Larrick created a scenario in which the customer didn’t receive what they paid and was not reimbursed for an error made by the brand. Customers who were treated with dignity and respect after an error by the brand did well. This could be because they felt more confident about their relationship with the brand.
The brand’s concern was a form compensation. This effect was not seen when consumers’ relationship with the brand related to price and value.
If the customers didn’t feel they were getting their money’s worth, that didn’t mean they would reconsider their negative opinion of the brand.
But, the situation can change if there is no problem that needs to be addressed with the customer.
The key takeaway: There’s a lot that can be done to build a trusting relationship between brands and consumers. These include the ability of the consumer to recognize the brand and their willingness and readiness to commit to it.
What’s brand relationship management?
The concept of brand relationship management allows businesses to stay in touch with their customers. It aims to build human-like relationships between consumers and brands. Brand relationships are a step beyond keeping the correlation transactional and should be able to focus more on the real connection between the parties.
Building a brand partnership
Although many digital tools can improve brand relationships, there are some instances when these software options can be more harmful than beneficial. While you can search for leads quickly and make short-term profits, it is the relationship that will last.
Today’s consumers expect and demand more from brands. Consumers will not pay more if they don’t see the value of an item. Consumers have greater flexibility when making purchases, which creates a stronger sense for competition among brands.
Consumers have become more unpredictable as the market grows and there are more options. Management of brand relationships is all about the customer. To maintain a consumer-brand relationship, a business must create and deliver value.
It is tempting to send multiple emails to customers with all the customer data that you have today. It is possible for your brand to appear as though it only cares about the rent if you send too many communications. Use creativity. Engage and interact with customers using high-quality content. This will help to strengthen the relationship between your brand and customer.
Brand relationships can be sustained by creating fewer communications that are compatible with customers’ values and behavior. Brand loyalty can be built by partnering with an influencer your customers trust. Ask for testimonials from repeat customers to position yourself as an expert in the industry.
A 2020 survey found that 84% of consumers would be more loyal to brands that are aligned with their values. The survey covered four demographics: Gen Z, Millennials and Gen X as well as three locations, including Australia, the UK and the U.S.
- Take a deep breath
While revenue targets may seem daunting, remember that brand loyalty is more about listing than haste. Instead of making decisions based only on daily reports, you can use data to anticipate customer needs and wants.
You can take a deep breath and get to know your customers better than just jumping from one surface to another.
- Create a community
There are many reasons why a company is experiencing a downturn. If you have a loyal customer base, they will be more loyal to your company in times of trouble.
Your current customers, whether they are repeat customers, superfans or customers, are key to maintaining a business in difficult times. Strong communities can act as a strong advocate for your brand when you face bad reviews, stolen product ideas, or need support for a new product or cause.
- Optimize customer service
It’s difficult to build brand loyalty without consistent customer service. You can do whatever you need to elevate your customer service team. You can invest in a CRM to offer support via phone, email and social media. Customers who need modifications to their orders will also be covered by a clear return/exchange policy.
It takes effort and time to introduce a brand new to the world. It can be hard for small businesses to gain a share of large corporations’ marketing budgets.