Loyalty goes hand in hand with emotions. To the customer, it is a result of constant positive emotions derived from satisfaction by a product and the value of the experience.
Connecting with the client therefore and offering excellent service beyond the need to make a profit will result in the customer developing loyalty for a brand product or business.
In this case, the consumer cultivates the belief that the product is the best option, and it best fulfils his value proposition. The customer therefore always goes for that product when purchasing.
Consumer loyalty is a key factor in consumer connection management. Customer loyalty has gained attention over time because the success of most services or product-oriented companies depends on it.
Customer loyalty brings organisational success, and the trend in the business world is to win the coveted price of customer loyalty. The result is customer retention and reduced promotional and advertising costs and the flexibility in responding to competitive challenges.
Three benefits of customer loyalty that effect an organisation’s success could be: make promotional spending less, flexible response to competitive challenges and purchasing product with less effort.
Advantages of Customer Loyalty
The first advantage that affects the organisation’s success is that customer loyalty gets free word-of-mouth advertising. When the consumer is loyal, there is no need to print flyers that are discarded or left unread, or even the print numerous advertisements in the local dailies.
Many people become friends and interact on a massive scale through social networking, which means that news is spread exponentially. With the current developments in technology, information about competitors is just a click away.
Furthermore, creating a “loyalty program” could prove more successful than a writer or a web news-wire’s discharge since traditional media does not know as much about readers as social networking does.
A further advantage of a loyalty program is that it reduces the costs associated with advertising, which in most cases leads to money being spent on wasted reading material.
The cost saving advantage of the objective would be surprising. In a competitive marketplace where advertisement costs have gone up, loyal customers are the businesses’ best advocates.
For example, when a client receives a good experience from a product they recommend the products or service to other customers that in turn results in savings in the marketing costs.
Customer loyalty is therefore of great importance to a business that aims at reducing its operational expenditure contributory to the business success.
Loyalty also acts as a powerful weapon against competitors in the same industry. Competitors are always looking for a way to woo more customers to consume their product or use their service.
The ability to tie the consumption of a good or the consumption of a service to an individual customer stops a consumer moving to a competitor’s product. In addition, it offers flexibility in dealing with a competitor.
This is because with customer loyalty, more offers that are specific can be made to entice the customer back or even it enables the direct contact between the business and the customer for a more personal touch.
Loyalty also offers the company a competitive advantage. In this era where when businesses see a good idea the copy it, having customer loyalty gives the business an edge over its competitors.
Loyalty binds the customer to the business and makes it difficult for customer snatching. In addition to the loyalty developed, the company develops a robust customer base that is constantly increasing.
For example, bank clients who have all along been given credit cards with other valuable benefits find it hard to exit their bank even with massive bank marketing. Also, they recommend their bank to their friends. With this in mind, the other advantage that customer loyalty gives the business over its competitors.
Brand loyalty also enhances ease of purchase. During purchases, the customer is usually faced with a myriad of choices that he has to choose from. Having brand loyalty eases this choice.
Loyalty relates to those customers that keep coming back because of the specific need that are met by the service or product. This is regardless of the price.
Ease of purchase is seen where the customer knows his or her product and knows what they need when making a purchase. Regardless of price, they will always buy the product because of the satisfaction it gives them.
In such regard, the producer would produce other products that meet to the needs of the client. Thus, the client would not have difficulty in choosing another product in the market, as he would have developed trust in the current dealer.
Such trust makes business operation easy to both the consumer and producer alike. Consumers who are loyal remain clients and continue to purchase the product or service regardless, and the company can always bank on them to make a purchase.
With consumer loyalty, the consumer is always on the lookout for new products from the enterprise. When a new product is developed, the customer tends to purchase the product regardless because of the experience with the business.
The client develops a bond with the enterprise as long as it continues to produce products that are in their interest. An example is the consumer loyalty that Apple Inc consumers have. Consumers find themselves having a Mac book, iPad and iPhone all from the same company.
The clients remain loyal to the company regardless of other available gadgets in the market that are equally good. They purchase the products regardless of price.
Therefore, an organisation banks part of its success from the major advantage that it receives from having consumer loyalty.
Businesses having a loyal consumer base offers a cost saving advantage in reduced marketing costs, acts as a powerful weapon against competitors, gives them a competitive advantage, and enhances ease of purchase for the consumer.
Businesses should aim to develop the very important relationship that will result in growth and customer satisfaction.