In today’s competitive business landscape, brand loyalty plays a crucial role in the success and growth of any company. As technology continues to evolve, artificial intelligence (AI) is emerging as a powerful tool that can enhance everyday activities and tasks, ultimately leading to improved client retention. By leveraging AI, businesses can create interactive experiences, automate daily tasks, and overcome various challenges. As debated on a panel earlier this year at TSAM London, we unpack this topic in two parts.
First we’re focusing on gaining an understanding of the importance of brand loyalty. We posed some questions to Hazel Pitchers, founder of Merakiting Ltd, a marketing and communications strategy consultancy and former Chief Marketing Officer for a number of global financial services companies.
How highly do you rank brand loyalty when putting together and prioritizing activities in your client retention strategy?
Brand loyalty is a crucial factor to consider when developing and prioritizing marketing and client service models in your client retention strategy. However, it can often be overlooked in favor of new prospecting strategies and awareness drives. In an investment management organization, it can take between six months to three years to win over a client, further driving that need to foster a long-term relationship with that business.
It is therefore imperative that marketing and client reporting teams are organized and given the tools to service existing clients.
- Differentiation in a competitive landscape
Investment management is a highly competitive industry, and brand loyalty can provide a significant competitive advantage. When investors are loyal to your brand, they are more likely to continue doing business with you, even in the face of competitive offerings or poor performance. This leads to increased client longevity and reduces the risk of client attrition.
- Word-of-mouth recommendations
Loyal clients are more likely to become advocates for your brand and recommend your services to others. Positive word-of-mouth recommendations can significantly impact the growth of your client base and attract new clients, leading to sustainable business growth.
- Reduced marketing costs over time Building brand loyalty helps reduce marketing costs over time. Loyal clients require less marketing and sales effort to maintain, as they already have trust and familiarity with your brand. This allows you to allocate resources more efficiently towards other growth initiatives.
What can you do to build Brand Loyalty?
There are six key areas that have been identified when building brand loyalty and ensuring support of your clients. There are no “one size fits all” options when it comes to brand loyalty and each client is unique when it comes to tailored personalization.
- Consistent client experience
Ensure a consistent and exceptional experience for investors across all touchpoints, from initial interactions to ongoing communication and support. Consistency builds trust and fosters a positive emotional connection with your brand.
- Personalization and relationship-building
Understand your clients’ unique needs and preferences and personalizing your interactions and service offerings accordingly.
- Thought leadership and education Establish your brand as a thought leader in the asset management industry by providing valuable insights, educational resources, and timely market updates. This positions your brand as a trusted advisor and helps clients make informed investment decisions.
- Communication and engagement
Regularly communicate with clients to keep them informed about your services, performance, and any changes or updates. Encourage two-way communication, actively listen to client feedback, and address concerns promptly.
- Reward and recognition programs
Implement loyalty programs or exclusive benefits for loyal clients to demonstrate appreciation for their continued trust and support. Rewards can include access to specialized investment opportunities, personalized reports, or invitations to exclusive events.
- Continuous improvement – seek feedback
Continually evaluate and enhance your services to meet evolving client expectations. Seek feedback, measure client satisfaction, and proactively address any areas for improvement to ensure a high-quality client experience.
Our next article will focus on the opportunities and pitfalls of AI when fostering brand loyalty touching on some key trends like the personalization of client experiences, continuous learning and compliance. With the right strategy and thorough understanding of AI, businesses can learn how to harness the power of AI effectively.
About the authors
At Kurtosys, we are proud of our fast, scalable and easy to use technology. We love improving the client experience with smart applications of technology and creativity.