The ever-evolving shift in brick and mortar retail and the accelerated growth of e-commerce play an important role in how companies react to and prepare for changing consumer needs and behavior. How can a product stand out on the shelves or on an online search list amidst sometimes hundreds of competing alternatives?
With today’s shopper being able to discover products through dozens of channels- online and off- it is more important than ever for brands to develop strategies for attracting and retaining a loyal customer base. Licensing offers brands the unique opportunity to discover previously untapped growth opportunities by extending their brand beyond their core business into complementary products via strategic licensing partnerships. Brands with strong awareness and recognition can keep existing fans of the brand happy and simultaneously find new customers by expanding their product range through licensed products. With the quality and reputation of the brand name imbued into the licensed products, brands gain new profit centers for their businesses. At the same time they also create a cost effective strategy for growing brand loyalty by increasing the brand’s exposure to consumers.
There is no better time to see the advantages of building strong brand loyalty than the holiday season. With consumers looking for help with purchase decisions, especially with seemingly endless online options, having a brand name that consumers recognize, trust and are loyal fans of increases the likelihood of purchase consideration. If brands can use licensing as a strategy to attract and expand the spending of consumers through strategic licensed products, the company is effectively building on its brand loyalty in new and valuable ways.
Not only are brand loyal customers buying licensed brand products for their own consumption or use, during the holidays they are also often buying that brand name for a new consumer who may not have had previous experience with the brand. In this way, the holiday season presents brands with the chance to reach new customers and build brand loyalty. With complementary licensed products at consumers’ fingertips, licensed products offer brands creative ways to increase touchpoint with consumers and in turn, potentially build on loyalty to their brand.
Licensing has many effective values for brand owners. It helps unlock new revenue streams, it can validate markets, and it can build new partnerships with manufacturers and retailers. From a brand strategy perspective, it is also a tactical and creative way to expand and strengthen customer loyalty for a brand. With the holiday season approaching, it is prudent for brands to consider how they are keeping in touch with and satisfying the needs of consumers. A strategic brand licensing program can be a positive and cost effective solution for meeting the demand and building the loyalty of your customer base.
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