Chapter 4: BRAND LOYALTY IN A DIGITAL ERA

A brand is one of a company’s most valuable assets. It’s how a company is instantly recognized  and often the reason customers patronize again. 

Brand loyalty has evolved from a simple transactional relationship to an emotional connection between consumers and brand. It's an environment where customers feel valued, connected, and engaged.  According to Kotler and Keller, brand loyalty reflects the intention to purchase a particular brand rather than its competitors, as well as provide other positive benefits to the brand, such as brand advocacy (i.e. word of mouth). 

WHY DOES BRAND LOYALTY MATTER

• Increased chances of repeat business: An existing customer is mostly likely to repeat purchases of a particular brand based on the perception of higher quality and better service.
• Enhanced revenue : studies shows that 65% of most companies revenue comes from repeat purchase from existing customers 
• Improved brand awareness : a loyal customer is a brand biggest promoter,the provide word of mouth marketing, recommending brand to family and friends.
• Cost effective:Acquiring new customers is  more expensive than keeping existing ones.

HOW TO IMPROVE BRAND LOYALTY 

Brand loyalty can be improved through the following means:

1. Consistency
2. Improved customer service
3. Loyalty reward programs 
4. Referral programs
5. Personalization and privacy 
6. Utilize customer relationship management tools

In conclusion, Brand loyalty is key to profitability since repeat purchase from existing customers make up a large portion of most companies' revenue. Always pay attention to their needs, personalize communications, maintain quality, use new technologies, and maintain decent customer service. All of these will help you get your brand loyalty to the peak.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management , Digital School of Marketing