Customer loyalty is a company’s most valuable asset. Not only does it bring repeat business, it also translates in many cases to more opportunities via word of mouth. With very few tangible differences among products in the marketplace, emotional logic is often the single most important factor that drives business. Without emotion, a product or service is just like any other product or service to the consumer. Consequently, for marketing to be effective it can no longer be tied only to what consumers see but also to what pulls their heartstrings. Here are some of the ways sponsorship can help your company improve its brand loyalty.
Change Or Reinforce Image
Sponsorship allows companies to create, change or reinforce a brand image and attract customers motivated by a particular cause or interest. For example, Pepsi Cola reinforces its ties to youth by sponsoring action sports that naturally draw the attention of young people. Although positive imagery can be projected through advertising, paid media often lacks the authenticity of a sponsorship.
Showcase Community Responsibility
Customers are increasingly more vocal about their willingness to reward or punish companies with their wallets based on corporate social responsibility. In a recent poll, people stated “social responsibility” as the number one factor that influences their impression of a company – even more than brand quality or business fundamentals. Sponsorship creates avenues to showcase a company’s responsibility to the community.
Display Brand Attributes
Through product showcasing at sponsorship events, companies can present customers with in-depth product information and inspire renewed enthusiasm and commitment by bringing awareness to the not-so-obvious benefits of a brand.
The hospitality and entertainment components of sponsorship can create opportunities for companies to spend a few hours with customers and prospects to solidify business relationships.
Differentiate Product From Competitors
Sponsorships that offer category exclusivity can be used as a platform for creating currency with customers. By offering exclusive value-packed benefits that the competition cannot duplicate, customers are more inclined to stick with a brand to retain those benefits.