Marketing Communications

Introduction

Retail branding equity is one of those terms used by marketers when they want to make it seem as though they are talking about something that is far more complex and important than it actually is. The fact of the matter is that retail branding equity is nothing more than the amount of brand exposure that you have in a given market. If your brand is the premier one when it comes to being known with a particular marketplace, your retail branding equity in that marketplace is high. It is a simple concept to learn and understand, but that does not mean that achieving retail branding equity is by any means an easy thing to do.

Saturated Markets

One of the main reasons why achieving a high level of retail branding equity fast these days is very difficult and probably impossible for most to do is the fact that we have saturated markets. With the notable exception of several of the new green industries, a lot of the major and minor industries that we have right now have been around for awhile. They have had a chance to mature and over the course of that maturation process, they have become saturated.

Fast forward to the present day and you will find saturated markets and industries just about everywhere you go. There are one or two giants in the marketplace that have the highest retail branding equity and then just about everyone else is left to fend for their own hide and try to claim as much of the remaining equity as possible. This is true for just about every industry including the online industry nowadays. Not everyone can defeat Microsoft and Yahoo quite handily to become Google. That takes a special company with special people and a whole lot of luck along the way.

Creating Retail Branding Equity

Note that in the above section the argument was put forth that it is close to impossible to build a high level of retail branding equity fast. It is certainly still possible to build a high level of retail branding equity though. You just have to be willing to go extremely slow in your estimations in order to do it. If you do not have the patience in order to go slow, you should not pursue a strategy in the marketplace that relies on you building a high retail branding equity. Without time, you will never reach that particular goal.

Final Thoughts

You might be wondering what strategies for success do not involve building retail branding equity. Well, the fact of the matter is that there are a lot of those strategies around. Bottom-feeders exist in just about every market and many of them are able to do reasonably well in terms of their net profits. They do not have retail branding equity except amongst the hardcore bargain shoppers. You can always follow this route, but you are giving up conquering your industry if you do that, even online. If you want to conquer the industry though, you need to spend the time to acquire retail branding equity. There are trade-offs in all things.

To maintain profitability and increase sales, online merchants and traditional merchants must come up with inventive methods of increasing repeat shoppers. One method of increasing repeat customers businesses are taking advantage of is implementing loyalty programs. A loyalty program is based on the business concept that profitability is increased when one maintains a loyal customer base. It not only allows businesses to maintain customers, but attract new customers. The most beneficial reward program is one that shows customers they will be rewarded if they increase their spending at the business.

The following list outlines how loyalty programs increase repeat shoppers:

- Loyalty programs such as gift cards, buy so many items and get one free cards, or a discount on the next item coupon, encourages customers to return to the retailer and make more purchases. For instance, if a customer has to buy 10 bags of dog food to get one bag free, the business will make more money on selling the 10 bags than losing money on a free bag. This is true for discounts and cashback loyalty programs. Frequent-purchase programs and points programs are examples of loyalty programs.

- Word of mouth is a great free method of advertising. A customer who is participating in a loyalty pogram is likely to bring a friend to the business who will want to join the program. This is especially true for free coffee loyalty programs. Whether you offer cash back, or reward points, or discounts on items, giving the customer what they most value will lead to an increase in repeat purchases.

- More customers are now looking for free shipping when they order online. Offering a loyalty program where the customer gets free shipping is a great way to increase repeat purchases.

- A loyalty program shows the customer that you appreciate and value their patronage. Customers enjoy receiving rewards and are more likely to return to the business. Loyalty will be established and a large loyal customer bases will grow. The money a company spends out on a reward program is much less than the profits that will be obtained. There will be a great return on their investment.

To have a successful loyalty program, one must have a clear strategy, a targeted customer demographic base, a proven method of tracking the results of the program, a method that will result in acquiring loyal customers, a way of gathering customer data to be analyzed for marketing purposes, and loyalty rewards that customers want.

More businesses are establishing loyalty programs because the effectiveness of these programs is well-documented. Businesses have found that it is more profitable to keep existing customers than to constantly look for ways to attract new customers. Loyalty programs motivate consumers to spend more money more often. In these difficult times it makes sense to take advantage of every marketing tool available. Implementing and managing a successful loyalty program not only increases repeat customers, but allows for building a brand and loyal customer base.

It seems that as our technology improves, the business/customer relationship is declining. With online technical and sales support, the personal side of customer relations is not as prevalent. There is no longer any loyalty to a business and its products and services. This trend can cause a significant decrease in sales. One way to counteract this trend is to resolve customer service problems successfully and efficiently in order to retain customer loyalty.

The following list outlines simple but effective methods of successfully resolving customer service problems:

Create a Customer Complaint Department: The best way to deal with customer complaints effectively and efficiently is to have experts who are able to manage irate customers with their problems

Be Polite and Courteous: If a customer walks into a business or calls, it is important that the customer service representative takes the time to show that they care and are willing to listen and help. Empathize with the customer’s problem. An angry customer will calm down if they feel they are valued and respected. Be positive.

Record the Problem: Writing the complaint down and the actions that will be taken helps avoid any misunderstandings. It also shows the customer that the matter is important to the business.

Provide Solutions or Methods of Resolving the Problem: Don’t list business policies and practices. This will only infuriate the customer. Work with the customer to come up with a solution that will satisfy the customer. If possible, don’t pass the problem off to another representative or transfer the call to someone else. If you do, make sure the new representative has all of the pertinent information so the customer does not have to repeat himself.

Empathize, Don’t Apologize: A direct apology will assign blame to the company. It is better to empathize using such phrases as: ‘I am sorry you have had such a difficult time with our product.’ It will show that you care about the customer’s situation. Try to understand the customer’s feelings and point of view. Understanding will go a long way in satisfying the customer.

Keep Your Promises: Make sure that you don’t make promises that you can’t keep. It will reflect badly on the company and make you look incompetent. The customer will also appreciate reliable service.

Produce Positive Results: Always follow through with your plan to resolve the problem. Bad or poor quality service will cause you to lose customers. The key to maintaining customers is to always follow through with your promise.

Offer loyalty Incentives: If the problem cannot be adequately resolved, offer a customer an incentive so they will continue being a loyal customer. This can include giving them a replacement product or service along with a gift or discount on their next purchase. Everyone loves free things. It will make the customer feel appreciated.

Think of customer complaints as lessons for improving customer care. The solution to great customer service is being able to identify the type of customer you are dealing with. To reap the rewards of customer loyalty, the customer needs to be put first when there is a problem. Showing the customer you care and are willing to resolve the problem efficiently and effectively will go a long way in retaining customer loyalty. Customer loyalty cannot be established immediately, but the investment is well worth it. A happy and satisfied customer is essential to achieving a successful and long term business.

Having a successful business is something that many people aspire to have in their lives, but as we know, this can be something that can be quite difficult. There are many factors that comprise an outstanding business, which is initially formed by the drive and the effort that is put into said business. After this, there is also the question of how the customers are treated. For any business to thrive, you are going to obviously need the clientele or the business will go under.

Making It Count

In dealing with customer relations, if you want any kind of return business, you’re going to have to make sure that you build report with every customer that comes in. By treating them in a manner as if they are of value, not just a way for you to make money, this heightens the chances of having them come back. Everyone wants to be treated respectfully, especially when it comes in concerns of their money. If you treat as customer as you would your family, you will find out that they will feel comfortable coming back.

Providing a positive customer experience, there is the chance where money is something that isn’t as important as the lasting impression that you have left on them. By going that extra mile and answering every question that they have plainly, without any deceiving words, great customer report is being constructed.

Trust

Trust is something that is big where there is monetary system involved. People are instinctually very protective of the things that they own, including money. If the customer cannot trust the business with providing solutions that are effective, they will simply take their business elsewhere. This is essentially the paramount issue of building customer loyalty, other than providing a positive environment in which to do business.

The products distributed need to be reliable, and if there is any information that the customer may not be aware of, they should be made aware. The point here is to build a lasting impression, and demonstrate to them that they are more important than their money. People do not like to be treated like they are nothing but what’s in their wallets, and it’s a shame that there are many companies that have lost sight of that simple truth.

Ensuring customer loyalty is vital for any successful business, because without it, the business is doomed for failure. By utilizing some of the basics of respect and by treating people the way that you’d want to be treated, you will find that this is something that will make your business soar to heights that you’d never imagine. For the upstart business, this is something that should come rather instinctually, as you’re just happy to have any customers at all. Where it becomes difficult is when the business happens to come across a certain amount of success, and they lose sight of how they got to where they are. In a sense, these businesses become jaded. To provide a positive customer experience, just remember the golden rule.