What Is the Importance of Brand Loyalty?

Brand loyalty is an indicator of brand loyalty. Consumers buy and use brands repeatedly for a long time, and have certain trust, commitment, emotional retention, and even emotional dependence on the brand. Customers with high brand loyalty are less sensitive to price and are willing to pay high prices for high quality. They can recognize the value of the brand and regard it as friends and partners, and are willing to contribute to the brand. ^[1]

Brand loyalty is at the core of brand value. It consists of five levels:

The value of brand loyalty is mainly reflected in the following aspects:

Reduce marketing costs and increase profits

What is the value created by loyalty? There is a direct causal relationship between loyalty, value, and profit.

Loyalty is linked to the creation of value. Enterprises create more value for customers, which is conducive to cultivating customer brand loyalty, and brand loyalty will bring profit growth to the enterprise.

Personally meet consumer needs

To improve brand loyalty and win the favor and trust of consumers, all activities of the enterprise must be carried out around consumers.

Repeat purchases by customers

In a certain period of time, the more times a customer repeats the purchase of a brand product, the higher the loyalty to the brand, and the lower the contrary. It should be noted that when determining the reasonable limit of this indicator, it must be treated differently according to different products.

How long customers spend shopping

According to the laws of consumer psychology, customers purchasing products, especially purchasing products, must go through a comparative selection process. However, due to the difference in trust, the length of time for customers to purchase and select different products. Generally speaking, the shorter the customer's selection time, it indicates that he has a preference for a certain brand of goods, and the higher the loyalty to the brand, the lower the loyalty to the brand. When using this standard to measure brand loyalty, the impact of differences in product structure and use must be eliminated.

Customer sensitivity to price

Consumers attach great importance to prices, but this does not mean that consumers are equally sensitive to the prices of various products. Facts have proven that, for products that they like and trust, consumers have a strong ability to withstand price changes, that is, they have low sensitivity; and for products that they don't like, consumers have weak ability to withstand their price changes, that is, high sensitivity. This can also be used to measure consumer loyalty to a brand. When using this standard, we must pay attention to the influence of three factors: the degree of customer demand for the product, the state of product supply and demand, and the degree of market competition. In practice, to measure the relationship between price sensitivity and brand loyalty, the interference of these three factors must be ruled out.

Customer attitudes towards competitive products

Changes in people's attitude towards a brand are mostly caused by comparison with competing products. According to the customer's attitude towards competitors 'products, you can judge the level of customer loyalty to other brands' products. If customers have a strong interest in a competitor's product and have a good opinion, it means that their loyalty to a certain brand is low. If customers don't like other brand products and have little interest, it means high loyalty to a certain brand product.

Customer attitudes to product quality issues

Any enterprise may have product quality problems due to various reasons, even brand-name products are inevitable. If customers have a good impression of a certain brand and high loyalty, they will be tolerant and sympathetic to the problems of the company. I believe that the company will deal with them soon. If the customer has low loyalty to a brand, once the product has a quality problem, the customer will be very sensitive and it is very likely that the product will never be purchased again.