Brand loyalty is the tendency of consumers to continuously purchase one brand’s products over another. Consumer behavior patterns demonstrate that consumers will continue to buy products from a company that has fostered a trusting relationship.
Loyalty is extremely beneficial to businesses as it leads to repeat purchases by consumers, higher revenues, and customer referrals.
Why is brand loyalty important?
Having a loyal customer base can help a business push past its competitors and give it the competitive advantage it needs to succeed in the marketplace.
Companies with strong brand loyalty will see its customers repeatedly buy its products or services, regardless of changes in price or convenience. Frequent purchasers of one company’s product are less likely to be swayed by the marketing messages of competitors, thus increasing the chances that those customers will continue to conduct business with the that company.
In addition to having higher sales than those without brand loyalty, companies that have successfully established a loyal following can enjoy a growing customer base as well. Loyal customers have the potential to turn into open advocates and brand ambassadors for a company. Satisfaction with a business will drive them to spread brand awareness and refer new customers, effectively providing a company with costless advertising.
A great method for nurturing brand loyalty is having a rewards program. Many companies entice customers to make a purchase by offering points or a similar object to be redeemed for prizes and awards.