The Danger Of Wallowing In Brand Ignorance The Danger Of Wallowing In Brand Ignorance | Page 32

Perspective

By Tamara Betty Asonga

In today ' s hyper-connected marketplace, where a single tweet can shape a brand ' s destiny and consumer loyalty is constantly tested, building lasting customer relationships is paramount. Businesses that prioritize nurturing loyal relationships with their customers consistently find themselves not only thriving but also leading their industries. But what precisely constitutes customer loyalty, and why is it essential for organizations to embrace this concept now more than ever?

Customer loyalty refers to the enduring relationship between a business and its customers, characterized by repeat purchases, consistent engagement, and advocacy. Loyal customers are more than just frequent buyers; they are brand ambassadors who trust and value a company’ s products or services. They provide businesses with revenue stability and shield them from the volatility of market competition.

Research consistently demonstrates that retaining existing customers is far more cost-effective than acquiring new ones. Loyal customers tend to spend more over time and are less sensitive to price changes. Their repeat business provides a steady income stream, ensuring financial stability for a business.

Beyond transactional exchanges, fostering customer loyalty hinges on building an emotional connection. When customers feel valued and understood, they are more likely to remain loyal, even in the face of competitive offers. Satisfied and loyal customers frequently become brand

30 MAL65 / 25 ISSUE advocates, promoting a business through word-of-mouth and social media, with social media currently dominating as a platform for both brand promotion and brand bashing. Loyal customer recommendations carry significant weight, as potential customers are more inclined to trust peer reviews over traditional advertisements.

Cultivating loyalty reduces the necessity for extensive advertising and promotional campaigns to attract new customers. Loyal customers are more likely to return without requiring constant reminders, enabling businesses to allocate resources to other strategic areas.

Long-term customers provide invaluable feedback that aids in refining products, services, and customer experiences. Their vested interest in the brand often results in constructive suggestions that drive innovation.

During economic downturns or industry disruptions, loyal customers often remain steadfast, offering businesses a lifeline when new customer acquisition becomes challenging.

The Impact of Social Media on Local Brands

Here are some notable examples of how social media has impacted various local brands:

Promoting Brands

Kenya Airways: The national carrier

Wowzi: Launched in 2020, Wowzi, a platform connecting brands with young African influencers, leverages social media creators to reach wider audiences and enhance market presence.

Damaging Brands

KFC Kenya ' s ' Chips ' Crisis: In January 2022, KFC Kenya faced a social media backlash after announcing a shortage of French fries. The situation was exacerbated by their reliance on imported potatoes, leading to criticism and calls for a shift to supporting local farmers. This highlighted the importance of supply chain transparency and responsiveness to local sentiments.

Safaricom and Influencer Backlash: In 2024, several Kenyan influencers publicly severed ties with Safaricom, accusing the telecom giant of siding with authorities during civil unrest related to the Finance Bill 2024. The influencers ' actions on social media brought negative attention to the brand, showcasing how influencer relations can impact public perception.

These cases illustrate the significant role social media plays in shaping brand narratives in Kenya. Effective engagement can lead to increased brand loyalty and market reach, while controversies