Posted in Marketing and Strategy Terms, Total Reads: 1444
Definition: Customer Loyalty
Customer loyalty refers to a situation where a customer develops a long standing preference towards a particular product, service or a brand. A customer’s loyalty is reflected in the repeated purchases he makes of a particular product and his favorable disposition towards a product or service.
Customer loyalty is both an attitudinal and behavioral tendency to favor one brand over all others, whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand. Customer loyalty encourages consumers to shop more consistently, spend a greater share of wallet, helping attract consumers to familiar brands in the face of a competitive environment.
Customer loyalty begins with customer satisfaction. Only when a customer is satisfied with the purchases he makes, can a company develop customer loyalty over a period of time.
Customer loyalty usually results in long term profitability for business.
Brands often develop special loyalty programmes for their customers to reward and retain their loyalty.
Stores like Shoppers Stop and Westside reward their customers with points every time they shop. These points are then equated to monetary value which customers can redeem.