Session 15 Brand Loyalty

8/8/2019 Session 15 Brand Loyalty

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Brand Loyalty

Brand loyalty consists of a

customers commitment to

repurchase or otherwise continue

using the brand and can be

demonstrated by repeated buying

of a product or service or other positive behaviors such as word

of mouth advocacy

Presentaion by Prof. Mohd Nazeer Ahmed,WLC College, India, Hyderabad


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Loyalty to the Brand

From the view point of marketers, loyalty to the brand isunderstood from the two factors

a. Consumer Usage- Suppliers often segment their customers

into heavy, medium and light users; as far as they can, they

target heavy users.b. Customers Commitment Philip Kotler defines four

patterns of behavior:

1. Hardcore Loyals- Who buy the brand all the time

2. Soft core Loyals- Loyal to two or three brands3. Shifting loyalty- moving from one brand to another

4. Switchers- with no loyalty



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Factors influencing Brand Loyalty

Brand loyalty is determined by several distinct psychologicalprocesses and it entails multivariate measurements .

The factors influencing the brand are

Customers perceived value

Brand trust

Customers satisfaction

Repeat purchase behavior

Commitment

Commitment and repeated purchase behavior are considered as

necessary conditions for brand loyalty.



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Portfolios of Brand

Consumers buy portfolios of brands. They switch regularlybetween brands, often because they simply want a change.

Thus, brand penetration or brand share reflects only a

statistical chance that the majority of customers will buy thatbrand next time as part of portfolio of brands they favor.

It does not guarantee that they will stay loyal.



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Market Inertia

One of the most prominent features of many markets is their overall stability- or inertia.

This stability has two important implications

1. Those who are clear brand leaders are especially well placedin relation to their competitors and should want to further the

inertia which lies behind that stable position.

2. The second, and more important is that someone who wishesto overturn this stability and change the market, massive

investments must be expected to be made in order to succeed.



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How to create Brand Loyalty?

According to the Pareto Principle ( also known as 80-20 rule), 80% of oursales come from 20% of our customers. This means to keep customers

returning, retailer need to help them remain loyal to their stores.

The following practices are followed by retailers

Satisfy the customer

Acknowledge the customer

Reward the customer

Follow up with the customer



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Satisfy the customer

In order to satisfy most customers and keep them happy, retailers caninstitute the following customer service practices in their store policy

manual. Retailer be just sure that all employees are working towards

satisfying the customers by

Greeting every person as they enter the store Letting shoppers know retail personnel are available for help

Providing services beyond the customers expectation

Thanks giving every shopper as they exit the store



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Reward the customer

Not only shoppers want retailers to greet them when they enter the store, but

they feel special if the retailer known them by name.

Is it easy to remember the name of the shoppers?

There are several instances where retailer have the opportunity to put a name

with a face.

Introducing oneself (retailer) to the customer. The customer may offer the

name as reply

Customers provide their name when writing a check, paying by credit or

filling out forms

Remember: relationship with the customer can reinforce loyalty



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Reward the Customer

From store cards that discount certain items, to free gifts with purchase,there are numerous ways to incorporate a customer reward program.

Before a retailer spend lot of money in marketing, he shall consider what

reward value the most to the customers

To some customers a real reward may be a simple gesture ofappreciation

When the retailer choose the reward, he will be probably spending few

dollars on a loyal customer will get retailer hundred of more revenues.



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Follow up with the Customer

Loyal customers want to now that retailers care about their needs and

interests. Here are few ways to keep in touch :

Send personalized mailings

Invite them to special in-store events as a VIP shopper

Ask about their family or events in their life

Note: Consumers appreciate knowing that someone is thinking about them. In

return, a loyal customer will keep those cash registers working.


Documents

Session 15 Brand Loyalty