Strong Branding Is Now Emotional and Not Transactional
If you stop for a minute and think about it, a common denominator across successful brands is the huge following that is usually emotionally connected to the brand.
Consider the following successful brands;
- Coca Cola
- Air Jordan sneakers
- Clarks Shoes
- Emirates Airlines
If you have ever watched a commercial of any of the above companies, their ability to reach and connect with you emotionally is astounding. In fact, studies show that if you feel emotionally good about a brand you are more likely to want to deal with them.
This knowledge is a key aspect in expanding your customer base and growing a successful business. Below are the stark differences between the two commonly applied approaches
Transactional vs. Emotional
- A defining trait of a transactional brand is offering the right products, at the right time, at the right price. Their advertisement campaigns are geared towards capturing the audience’s attention.
- Emotional brands are quite the contrary. They create positive relationships with the sole aim of generating irrational enthusiasm and charging irrational prices.
The difference shows that companies can harness the power of branding when they shift from a rational and transactional relationship to an emotional relationship. There is a raging debate in the branding industry and in the minds of business owners on which approach makes more business sense.
More light can be shed on the above by analyzing what makes a customer loyal.
Here we look at the three types of customer loyalty,
- Behavioral loyalty; this is where the consumer tends to re-purchase a brand out of repeated behavior. It is easily measurable by accessing purchase information. However, this cannot be considered a good indicator of loyalty because, the repeat business might be as a result of a lack of alternatives for the consumer or the effort required to change supplies.
- Rational loyalty; is also referred to as functional or cognitive loyalty. It is when a customer calculates and determines the decision of what relationship to have with the brand after weighing the value of the product or services.
- Emotional loyalty; is a psychological preference and a sentimental attachment to the brand or product.
Of the three allegiances mentioned above, it is widely agreed that emotional loyalty has the biggest influence on behavior. So much so that, even when there is availability of more meaningful and cost effective choices, emotionally loyal customers will opt to spend on their favored brand. An emotionally connected consumer will visit their store 32% more often and spend 46% more money than customers devoid of emotional bonds with the brand.
The emotional component cannot be overstated when it comes to branding and some of the most successful brands have realized this. That is why their advertising is more geared to winning hearts over minds.
— TextMaster (@textmaster) 19 de junio de 2017