Think about your own experiences: Are there products that you only buy because they are trustworthy or they have been by your side throughout your life? Have you ever bought something because the promo caught your attention? Have you placed too much importance or credibility on a product just because of the brand, even if you do so unconsciously? The answer is most likely yes to many of these questions. Therefore, we can conclude that the three essential and decisive factors that intervene when making a purchase are: the brand, the commitment, and promotions. Today you will learn why this happens and why it matters.
Regarding purchasing habits, a recent study by AIMC Marcas states, “Almost 60% of those surveyed claim to buy only from their trusted brands, a figure that is pronounced for people between 55 and 64 years (61.8%) and, especially, among those over 65 (71.5%). In addition, 66.9% of consumers acknowledge being loyal to the brands they like, especially groups between the ages of 35 and 65, while young people between 14 and 19 years of age are the least likely to demonstrate their loyalty to brands (53.6%). On the other hand, 4 out of 10 participants in the study affirm that they like to be informed of the offers and promotions established by the brands, something that can be associated with the idea of taking care of the particular economy.” Let’s take a closer look at these elements.
A brand is used to declare something. But, what is it that makes customers perceive brands as more valuable than others? The main reason has to do with the core purpose of brands in general: a brand is established by building trust in an assurance about who your company is, what it stands for, and what meaningful products or services it delivers.
The philosophy of a brand is a key factor since it plays a huge role in the increasingly conscientious consumers of today. At the same time, the brand’s philosophy will be reflected in the impact and success of a business. For example, when brands do something beneficial for society, such as charitable donations or allocating funds to a social cause, their perception and visibility will change significantly in a positive way.
According to the same AIMC study, “The fact that brands do something for society is an issue that 27% of consumers increasingly take into account, compared to 24% in 2018”. These statistics show that the involvement of brands with conflicts and social problems are intricately linked to purchasing decisions, especially among younger consumers. However, a brand with great range that highlights the importance of its purpose and the relevance of social commitment in connecting with the customer translates into more commitment from its customers.
As we already stated, one of the best ways to earn loyalty from your customers is to make them commit to something. This has to do with the principle of comfort: people prefer to be loyal and consistent with a choice that they previously made. The reason why this happens is that our minds are used to taking mental shortcuts to make decisions more easily. Also, because people make so many decisions every day, they unconsciously try to find alternatives to reduce the number of decisions they must deal with.
A great marketing tool that serves as an example is “Wish-Lists.” Every time a client puts an item in a wish-list they are psychologically committing to purchase the item sooner or later. This method also reduces shopping cart abandonment. This is just one example of the many techniques that can be derived from the commitment factor. The key is knowing how to use this element to develop marketing tools that exploit customers’ loyalty potential.
This is probably the most obvious factor because it is increasingly common for brands to carry out promotional actions. The reason that this technique is so frequently used is because of its proven high probability of success. In their study, AIMC says, “The promotions that have had the highest participation rates by consumers in the last year have been coupons or vouchers with offers (25.8%), free tastings in store (20.7%) and free samples (19.6%)”.
The types of promotions are endless: advertising (with help of television, radio or social media), direct marketing (organizations communicate directly to customers through a variety of media including cell phone text messaging, email, websites, online adverts, etc.), sales promotion (uses both media and non-media marketing communications), personal selling (companies send their agents to the consumer to sell the products personally).
But, these methods of marketing purposes are mainly the same: creating interest in the minds of buyers and seeking to generate loyal, long-term customers. The benefits of implementing and applying promotions are well known, such as making people aware of your service, product, service business, and improving the public image of a company. So, now that you know, don’t be afraid to try them all!