Importance of brand loyalty

Sajjad Ali

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The notion of loyalty is broadly speaking divided in to two major types that are Personal and Commercial. The personal kind is rather intimate, permanent and long term, this sort can only be found in family relationships or in close friends. There are not much rules, a lot of the shortcomings can be excused and it is taken for granted.

The other which is the commercial one is rather stern and unforgiving which occur between the companies or their brands and their consumers. There is always almost something exchanged between the two parties, mutual understanding is established and a persistent “top-up” is essential to keep the relationship going on perpetually.

In such uneven time of economic unrest and declining businesses, where the priority is sustainability rather than moving forward with force as was the case in the 90s, all major brands are still pushing for one major thing, increasing the brand loyalty. Since it increases the sales exponentially faster and for a much longer period of time. (Duffy,2013)

ValueConsumers usually associate high level of expectations with the brand they are most close or loyal to, with the “value” being the driving force rather than just the quantity Therefore, the increasing trend of 'showrooming' is no surprise, so the companies should make sure they are offering the best of their goods in the best of prices available in the market. (Prior, 2015)

What is further leading to in the cause to increase the brand loyalty is the increased use of multi-channel to muster the audience.

It is the emerging markets which are at the forefront of this venture with 35% of Chinese and 29% of Indian consumers are engaged with an app to interact with the favourite brand, in contrast to a lowly 17% and 14% of US and UK respectively. (Buckingham,2013)

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RewardsFrom a consumer’s point of view, the benefit of brand loyalty are increased rewards. The indicators show that in nearly all countries the pivotal agent are the rewards that needs to be integrated when planning the optimum strategy. It is to be noted that rewards need to prompt yet malleable and they should be able to use them at their convenience like K&Kns rewards points in a number of ways. The only way in the contemporary era is to figure this in the equation to achieve the maximum, although this may be seem to be financially burdening in the short term but does turn out to be profitable in the longer run.

ReturnsTherefore, the financial gain of securing a loyal customer are cannot be rivalled with a new customer who may be spending big in the first place but is not guaranteed to continue to do so. A whopping 72% consumer confide in the fact that they are likely to make a purchase again form the same brand when they are loyal to it, here UK and USA consumers lead form the front with a 79% chance of repurchase. (Buckingham,2013, p. 3)

Customisation Moreover, in this ever expanding global village, the need to feel personalized has been higher than ever. Brand loyalty is not merely a product of increased rewards and the best price, but also the inclusion of uniqueness. The consumer must feel that his or her point of view has been taken in to account. For example the inclusion of chicken tikka flavour in the Knorr noodles line explains this idea of realizing the local needs of the consumer.

Thus eventually it should not be just about imitating the global strategy, but also infusing the local culture in as well that can make the consumer associate the brand as his own. It is also instrumental that the marketer knows where the consumer stands at this moment. (Young, 2011, p. 3)

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ConclusionBuilding loyalty in this era is an integral investment long term, there should be legitimate reason for the consumer to stick to your brand only, as when you put customer first, and they will also do the same in return. (Prior, 2015, p. 5)

References

Buckingham, M., 2013. Brand loyalty: Time for a rethink. Admap, Issue June 2013, pp. 1- 5.

Duffy, M., 2013. Brand loyalty: Disloyalty in banking. Admap, Issue June 2013, pp. 1 - 7.

Prior, J., 2015. Six routes to brand loyalty. Admap, Issue January 2015, pp. 1 - 5.

Young, L., 2011. How to foster brand loyalty effectively. Warc Best Practice, Issue December

2011, pp. 1 - 8.