WORTH HEARING: Building Consumer Lifetime Loyalty
Building Customer Lifetime Loyalty in an Era of Diminishing Brand Lifespans
In today's fast-paced market, the lifespan of brands has significantly shortened, making customer lifetime loyalty (value) more crucial than ever. According to research from Statista, the average lifespan of companies listed in the S&P 500 has dropped from 32 years in 1965 to less than 21 years in 2020. This phenomenon can be partly attributed to the concept of creative destruction, where continuous innovation disrupts existing businesses and industries, leading to their eventual decline. The trend underscores the critical need for brands to cultivate deep, enduring customer loyalty to ensure longevity and relevance.
In this compelling discussion, two of my favorite growth strategists come together to trade barbs and branding wisdom: Fabian Geyrhalter, renowned for his book "Bigger Than This," and Chris Do, a prominent entrepreneur, educator, and YouTuber known for his expertise in design, branding, and business. They've got some solid tips on turning any business into a beloved brand by really connecting with customers on an emotional level. Drawing on his own experience, Geyrhalter emphasizes how being real and telling a good story can make brands really hit home with their audience.
Here are five of the eight essential strategies discussed in Geyrhalter’s book.
1. Emotional Connection and Real Brand Stories
One of the most potent ways to build customer loyalty is by forging an emotional connection. As Geyrhalter emphasizes, "I believe that the new advertising is actually branding. I believe that branding replaced advertising because now brands have to be real." Today’s consumers are savvy and can see through inauthentic marketing tactics. They seek genuine, emotionally resonant stories that reflect their values and aspirations.
A brand that tells a compelling, authentic story can create a deep emotional bond with its customers. This connection transforms a transactional relationship into a loyal partnership. When customers feel emotionally connected to a brand, they are more likely to remain loyal, advocate for the brand, and forgive occasional missteps.
2. Radical Transparency
Transparency is no longer optional; it’s a necessity. Geyrhalter explains, "They call it radical transparency. Here's how radical transparency works for a company like Evelyn and then think how to apply that to yourself, right? Transparent pricing. How amazing is that? It tells you this is completely transparent. You will gain instantaneous trust."
By being transparent about business practices, pricing, and even mistakes, brands can build trust with their customers. Trust is a foundational element of loyalty. When customers believe that a brand is honest and transparent, they are more likely to stay loyal, even when cheaper alternatives are available. This transparency is particularly crucial when it comes to sustainability and the supply chain. Consumers today are increasingly concerned about the environmental impact of their purchases. Brands that openly share their sustainability practices, sourcing, and supply chain processes can build stronger trust and loyalty. When customers know that a brand is committed to ethical and sustainable practices, they are more likely to remain loyal.
3. Understanding and Delight
Understanding your customer is the bedrock of creating delightful experiences. "Delight is something that you can do so easily... you have to understand your customer. If you know that you have a tribe there that wholeheartedly follows you because of your firm beliefs, then voice your passionate beliefs. They actually can turn into your brand's passion," says Geyrhalter.
Delighting customers goes beyond meeting their needs; it involves exceeding their expectations in memorable ways. Whether it’s through exceptional customer service, personalized experiences, or unexpected perks, creating moments of delight can significantly boost customer loyalty.
4. Brand Over Advertising
In the past, brands relied heavily on advertising to attract and retain customers. However, as Geyrhalter points out, "I believe that the new advertising is actually branding. I believe that branding replaced advertising because now brands have to be real."
Modern consumers are bombarded with advertisements and have developed a keen ability to tune them out. Instead, they seek out brands that consistently deliver on their promises and align with their personal values. By focusing on building a strong brand identity and delivering a consistent brand experience, companies can foster deeper, more sustainable customer loyalty than traditional advertising ever could.
5. Niche Leadership and Passionate Beliefs
Finally, Geyrhalter advises brands to carve out a niche and lead with passion. "Support a subgroup for designers... go into the credit union space and become the design firm known for credit union designs... you will become the niche leader. There is absolutely no way if you do it right and if you dedicate yourself."
By focusing on a specific niche and passionately serving that community, brands can create a loyal following. Customers who feel that a brand truly understands and caters to their unique needs are more likely to remain loyal. Niche leadership also allows brands to differentiate themselves in a crowded market, making them indispensable to their target audience.
Bottom Line
In an era where the average lifespan of brands is shrinking due to creative destruction, building customer lifetime loyalty is more important than ever. By forging emotional connections, practicing radical transparency, understanding and delighting customers, focusing on brand over advertising, and leading with passionate beliefs in a niche market, brands can create deep, enduring loyalty. These strategies not only help in retaining customers but also in turning them into advocates who drive long-term success.
As the marketplace continues to evolve, brands that prioritize these principles will be better positioned to thrive and remain relevant in the years to come.
To get the rest of Geyrhalter’s marketing wisdom - remember…there are three more insights - buy his book. Share his book. Your copy will be dog-eared in no time.
https://www.finien.com/books/biggerthanthis/
Reviews:
“In Bigger Than This, Fabian Geyrhalter offers a set of ideas and a collection of case studies to help you create long-lasting value in head-spinning times. Don’t just read this book...put it to work inside your company and in your career.”- William C. Taylor, Co-Founder, FAST COMPANY, and author of Simply Brilliant
“This book, without a doubt, will create better companies in the years to come.”- Jonah Berger, Wharton Professor and bestselling author of CONTAGIOUS and INVISIBLE INFLUENCE
“Bigger Than This is a small book with a very big font and an even bigger idea.”- Shaun Smith, Author of ON PURPOSE: Delivering a Branded Customer Experience People Love
“Bigger Than This will, within the first few pages, make it clear why the author is such a branding and marketing guru. If you're interested in starting, or taking your existing business to the next level, I'm absolutely certain that Bigger Than This is the very best place to start.”- Jamie Michele, READERS' FAVORITE
“Bigger Than This has just the right mix of big ideas and practical examples. Fabian Geyrhalter’s book does a superb job of illuminating modern-day branding in a format that makes reading it a pleasure.”- Barry Silverstein, FOREWORD REVIEWS
“As 'real world practical' as it is insightfully 'user-friendly' in organization and presentation, 'Bigger Than This' is an extraordinary and invaluable read from cover to cover”- MIDWEST BOOK REVIEW
"This is a realistic, easy, and logical companion for any business venture willing to realize and share the story behind their products. A must-read for any entrepreneur."- SEATTLE BOOK REVIEW
“I highly recommend Bigger Than This. Funny, direct, honest, packed with insights, stories and great tips. Concise and clever: you can read it in an hour and get the wisdom of years.”- Andy Milligan, Author of BOLD: How to Be Brave in Business and Win
“The author’s genuine enthusiasm for this topic is infectious. Expect your copy to become dog-eared...you’re likely to find yourself referencing it again and again.”- David Glaze, Creative Director, AMAZON
“Essential reading for any entrepreneur who wants their brand to be more empathetic.”- Heather McGough, Co-Founder, LEAN STARTUP CO.
“5 out of 5”- CLARION
“Recommended Reading”- MARKETING WEEK
“Refreshingly clear and devoid of jargon, Bigger Than This is full of case studies, insights, and analysis that explore the best ways in which to turn a business into a brand.”- Brittany Golob, Editor, TRANSFORM MAGAZINE
“If you are a business owner, this is an important book.”- Dr. Alex Mehr, CEO & Co-Founder, MENTORBOX
“Bigger Than This is an executive’s guide to the critical qualities, questions, and quirks behind every authentic brand. You’re going to want a highlighter for this one.”- Ken Plasse, CEO, FISHPEOPLE SEAFOOD
“Seth Godin’s and Fabian Geyrhalter's books are my go-to and if you're interested in building a brand bigger than your product, I recommend taking a look at them. The reason I love Bigger The This so much is that it not only acknowledges that branding can make a subpar product better than the competition but also talks tactically about how brands can build superior brands.”- Robbie Abed, INC.COM
