Brand Loyalty
Brand Loyalty is a scenario where the consumer fears
purchasing and consuming product from another brand which he does not trust. It
is measured through methods like word of mouth publicity, repetitive buying,
price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand
loyalty is the extent to which a consumer constantly buys the same brand within
a product category. The consumers remain loyal to a specific brand as long as
it is available. They do not buy from other suppliers within the product
category. Brand loyalty exists when the consumer feels that the brand consists
of right product characteristics and quality at right price. Even if the other
brands are available at cheaper price or superior quality, the brand loyal
consumer will stick to his brand.
Brand
loyalty is a pattern of consumer behavior through which consumers tend to get
committed to a specific brand or product and make repeat purchases over time.
Businesses plan different creative marketing strategies like reward and loyalty
programs, incentives, trials and brand ambassadors to create brand loyalty.
Those who are loyal to a particular brand do not purchase a substitute brand in
case the preferred brand is unavailable. Loyal customers search multiple
stores for their preferred brands are more likely to forego their purchase in
case the brand is not available.
This
buying decision can be either conscious or unconscious, however, it is based
upon trust that the brand fulfils the consumers. Brand loyalty is based upon
emotional involvement which is created between the brand and the consumer. It
is perceived by the customer that the brand will fulfill some type of emotional
want or physical need in a unique way and which evokes emotions during the
process of purchasing and using it.
Brand Loyalty Definition
In
terms of definition, brand loyalty is the emotionally-charged decision of a
consumer for purchasing a particular brand again and again. The consumer has
the perception that the particular brand has the qualities that will meet their
expectations and identifies with the consumer at a personal level.
Why is Brand Loyalty Important?
Brand
loyalty helps in building a strong customer base which in turn serves as a tool
to surpass competitors and attain a competitive edge that is required to
succeed in the marketplace.
Companies
having strong brand loyalty customers experience repeated purchases of its
products and services regardless of the fact that there is a change in price or
convenience. Loyal customers of a particular brand are less likely to get
influenced by the marketing efforts of competitors thereby, increasing the
probability that these customers will continue using the products and services of a particular company.
Alongside
this, companies who have built a strong brand loyalty also have the opportunity
to enjoy increasing customer base. Loyal customers may turn into brand
ambassadors for the company. This is because loyal customers are satisfied with
the brand and will spread brand awareness providing the business costless
marketing.
Difference between Brand Loyalty and Customer
Loyalty
Brand
loyalty is achieved when a customer actually uses the product or service of a
company and is satisfied with its offerings. On the other side, customer
loyalty is attained through coupons, extended warranties, incentive programs
and free offers to make customers happy and persuade them to make return
purchases.
The
main difference between the two concepts is that customer loyalty is equal to
what is in the wallet of the consumer whereas, brand loyalty equals what is in
the mind of the consumers. Customer loyalty marketing programs mean having
smaller margins with the expectation of higher volumes. Brand loyalty, on the
flip side, can still achieve higher volume but with an added bonus of larger
margins.
Brand Loyalty Examples
Apple
Apple
has a very strong loyal customer base and this is for several reasons. The
company holds an effective brand strategy which allows it to have a passion for
its products and customer experience, they guarantee the high quality of every
product they have to offer, they continuously innovate in customer tech and
they are willing to satisfy consumers’ aspirations. Through customers brand
loyalty, Apple has reaped several benefits like increased rate of retention,
increased referral rate, increased share of wallet as well as reduced marketing
costs.
Nike
In the year 2016, Nike was on the top of the list for the most intimate relationship of the brand amongst 18-34 years olds. This is a great example of brand loyalty as it holds a combination of different qualities like fulfilment, fusing, and nostalgia. Nike is engaged in using B2C interaction so as to monitor the preferences of its consumers and to translate the experience of its in-store customers.
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