Every successful business depends on Brand Loyalty as it is the ultimate goal a company aims at. Brand Loyalty means a consumer's commitment to a brand. It implies that the customer not only looks for his/her own benefit but is willing to think about the brands interest. It is mainly stated by repeat purchase. However it is not the end of the story. Brand Loyalty can be reflected in various positive behavior of the customer such as word of mouth advocacy, referring the brand to others and so on.
What does Brand Loyalty Imply?
Repurchasing of a product is not the ultimate determinant of brand loyalty. It might take place because of situational constraints, no alternatives, and inconvenience and so on. It is called "spurious loyalty". Brand loyalty is much more than that. It becomes possible when a company creates successful emotional attachment of a customer with a brand. Brand loyalty is an asset to a company.
Why do Customers Develop Loyalty towards a Brand?
Brand loyalty can be defined as a customer's conscious or unconscious decision that is expressed through his/her behavior. A customer develops loyalty towards a brand because they think that the brand is offering quality product or service at the right price. As soon as the customers know that you are offering value of their purchase they will be encouraged to buy your products or services.
What can Influence Brand Loyalty?
A number of things can influence brand loyalty starting from designing a new product to writing its catch line, understanding customer's need to employing effective marketing strategy. Brand loyalty occurs as the customer perceives the brand in a positive manner. Developing loyalty among new customers and retaining it among existing customers are equally important.
Therefore it is necessary that the customers have a good impression about you as it is the foundation of their buying habits. When the customers buy a product they make a trial purchase. If they are satisfied with your product they will get back to you. Customers prefer to buy products that are familiar, safe and of good quality.
Mindset of a Brand Loyalist
A customer who is loyal to a brand has a typical mind set. When a customer is committed to a brand he/she keeps coming back to the brand to buy a product or a service. A loyal customer is always willing to pay higher price for his/her preferred brand than other brands. He/she also recommends this brand to others after realizing that the brand offers value for money.
What is the Importance of Brand Loyalty?
The importance of brand loyalty is immense since it is brand loyalty that determines the sale of a product or a service. It is very difficult to survive in today's competitive world. In order to do so it is very crucial not to loose your customers. Reducing customer loss and achieving new customer's trust and loyalty can dramatically improve your business growth.
Moreover when customers are loyal to your brand they will be less sensitive to price change and willingly pay higher price to get the unique value that your brand offers. Brand loyalty will ultimately lead to cost cutting and high profit margin as a loyal customer is indifferent to competitive promotions. Once your brand loyalty is established you don't need to spend much on advertising and marketing.
How to Create and Maintain Brand Loyalty?
A number of things determine brand loyalty. A customer develops brand loyalty only when they get quality product or service at the right price and once he/she gets it the customer expects the same from you. Now it is your responsibility to maintain the quality at a reasonable price. You should also remind them of the value of their purchase. Finally you should encourage them to buy your product or service. Make yourself easily available and also improve your customer service.
Steve is a media professional and writes for different online publications on media and advertising industry