The Importance of Loyal Customers
According to the Pareto principle, 80% of a company's revenue comes from 20% of loyal customers who make repeat purchases. Furthermore, the average order value of a loyal customer is 31% higher than that of a new customer. Selling to existing customers is more cost-effective than acquiring new ones, making customer loyalty essential for businesses.
When customers are satisfied with their purchase, there's a 60-70% chance they will return to the brand, whereas new customers only come back 5-20% of the time, according to a study by Semrush.
The Impact of Counterfeit Goods on Brand Image
A positive brand image is formed through satisfied customers and their positive feedback. However, fake and counterfeit goods can significantly hinder the development of a favorable brand image:
- Customers might not realize they have encountered a counterfeit product and blame the brand instead of the fraudulent seller.
- Criminals could create a site with a similar domain and sell counterfeit or illegal goods, leading customers to be disappointed in the brand or not receive their orders at all.
As a result, brands risk losing potential loyal customers who may switch to competitors and share negative opinions about the company with others.
According to Nielsen, 61% of customers prioritize the quality of goods when choosing a product, while only 21% of customers consider advertising important.
Without proper brand protection, a company could face negative reviews, a tarnished reputation, decreased sales, or even lawsuits from dissatisfied customers.
Practical Brand Protection Tips and Examples
To protect your brand and maintain customer loyalty, follow these steps:
- Trademark registration: Register your trademark and secure ownership documents.
- Monitor IP violations: Regularly monitor violations of your intellectual property rights, both online and offline.
- Address infringement: If you find infringement, contact the infringer and demand that they cease using the trademark, remove illegally posted information, or stop selling counterfeit goods.
Example: Company A discovered that their products were being counterfeited and sold on an unauthorized site. They contacted the site's owner and demanded that the brand's product pages be removed. As a result, the site stopped selling counterfeit merchandise, and Company A's brand reputation remained intact..
- Seek reimbursement: If your company has suffered losses due to intellectual property infringement, seek reimbursement from the fraudster. If they refuse to settle the matter amicably, take legal action.
Example: Company B went to court after scammers sold counterfeits of their products online. By providing evidence of their trademark rights, the company won the case and received damages..
- Implement monitoring systems: Implement systems to monitor online and offline sales to detect violations and stop illegal activity.
Example: Company C implemented a system to track sales on popular online sites and retail stores, allowing them to quickly identify violations and take action to stop them.
- Train employees and partners: Educate your employees and partners on the basics of brand protection so they can effectively protect the company's interests.
Example: Company D conducts regular training sessions for its employees, dealers, and partners on brand protection, ensuring they know how to act if violations are detected.
By prioritizing brand protection, you can create a positive company image, protect your products from counterfeiting, and ensure the long-term growth of your business.
BrandMonitor: Comprehensive Brand Protection
BrandMonitor's AI algorithms continuously scan the web, identifying online sites, ads, and marketplace and social media accounts that engage in brand infringement.
- Blocked about 70,000 websites and more than 1,000,000 offers on marketplaces and social networks in the past year
- Violations displayed in a user-friendly personal account interface
BrandMonitor finds and destroys counterfeit goods offline, ensuring retailers never violate brands' rights again.
- Identified approximately 50,000 retail outlets selling counterfeit goods
- Conducts approximately 10,000 raids annually in conjunction with law enforcement
With BrandMonitor, brands can select the scope of work with a single click. Our work is financed from the funds recovered from offenders, ensuring effective brand protection regardless of budget allocation.
BrandMonitor removes counterfeit goods from the market and blocks their supply chains, making it impossible for brand infringers to continue operating.
- More than 40 IP counsels in different countries, well-versed in local law
- Partner network of over 150 IP counsels working simultaneously on brand protection
- 3,000+ mystery shoppers in 80+ countries monitor and shop around the market daily
The fight against counterfeiting takes place both online and offline, with BrandMonitor providing comprehensive brand protection to ensure businesses maintain their reputation and consumer trust.