Consumer Loyalty

Posted: January 4th, 2023

Consumer Loyalty

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Consumer Loyalty

Consumer or customer loyalty is an area that attracts much attention for businesses and marketing scholars because of its benefits in achieving sustainability and competitive advantage. Businesses should not only know the meaning of customer loyalty, but should go ahead to understand the various types of customer loyalty and how to improve relationship with buyers. The firm is in a better position of maintaining buyer loyalty if it focuses on the various forms of consumer loyalty, and if it acknowledges that it must use effective strategies to attach customers to the business. The business increases how its buyers are attached to the brand by creating a consumer loyalty program that offers incentives to purchasers and allows them to contribute towards production and decision-making.

Description of Consumer Loyalty

Consumer loyalty is a behavioral concept where buyers favor the products of a particular brand over other companies. Consumer loyalty signifies the magnitude to which buyers are dedicated to a firm’s products or services and how strong is their tendency to choose one brand over the other (Moretta, Cavacece, Russo & Granata 2019). Consumer loyalty is positively connected to customer satisfaction as happy buyers consistently value the brands that meet their wants. Loyal buyers exclusively buy a company’s services or products, and are not willing to change their preferences over competing companies. Customer loyalty emanates from a company consistent attempt to give the same products all the time as the same measure of success (Moretta, Cavacece, Russo & Granata 2019). Businesses dedicate special attention to buyer service, aiming to maintain their present market base by improving customer loyalty. Often, companies would develop loyalty programs and consumer rewards to the most loyal buyers as a way of appreciation for maintaining business ties (Moretta, Cavacece, Russo & Granata 2019). Any company that wants to achieve sustainability in its operations should work towards building customer loyalty.

Different Types of Consumer Loyalty

A business has more chances of increasing customer loyalty by knowing how the various types of customer loyalty work. One type of customer loyalty relates to the product whereby consumers consistently purchase the same item over and over due to its qualities or features. A buyer, for instance, may repeatedly purchase electronics from a brand after noticing the good quality associated with the company’s products (Lin & Bennett 2014). Once loyalty with the product is developed, it may last for several years. The second form of loyalty is aligned to services where buyers are so much attracted to particular services because of the benefits they get from these provisions, the quality, and kindness of the services providers. The third form is brand loyalty, which emanates from the customer experience or brand reputation (Lin & Bennett 2014). Brand loyalty happens in such a way that the consumer may either be loyal to a particular product or the entire brand. Distribution loyalty is the forth type of consumer loyalty whereby buyers prefer a particular brand over others because it is easier for them to access the products. A customer, for example, may be loyal to manufacturer because it is close to their business or office. Price loyalty is the fifth form of loyalty where the consumer has the habit of consistently buying the same products or services based on the prices (Lin & Bennett 2014). A consumer, for example, may always by the same brand of shampoo because it is the most affordable on the shelves. Such buyers, however, may adjust to another brand when the prices go up, and may show some indifference to attempts to advance product quality. Marketers should be keen on buyers who show loyalty because of price and be keen while making adjustments to avoid losing the group of consumers that usually comprises of so many buyers (Lin & Bennett 2014). Marketers and businesses should be keen on consumers who maintain loyalty because of the relationship they have with the company. The consumer may have relationship with some specific employees or every worker, which may encourage loyalty.  

How Marketers can utilize Evidence on Consumer Loyalty in Practice

The concepts of consumer loyalty can benefit marketers in both small and medium enterprises (SMEs) and multinational corporations, which makes it necessary to understand and apply research evidence effectively. It requires businesses to know the vital strategies that help to bring buyers even closer. Imbug, Ambad and Bujang (2018) argue that whereas business environment today is struggling to form a long-lasting attachment with buyers, the secret lies in creating an effective framework that would provide better services and products to buyers. A suitable way to be conversant with the appropriate strategies is to rely on research evidence by various scholars on what it takes a company to strengthen its ties with buyers.  

Marketers should apply the research evidence on the effects of customer loyalty by employing strategies that would make it easier to keep consumers much closer. The marketers should focus on offering efficient, courteous, and helpful customer services because this develops excellent impression about the brand, and encourage consumers to come back (Nuridin, 2018). The business should take the initiative to invest in adequately-trained customer service representatives and make it possible to resolve the issues that could interfere with operations, especially those that the customer can easily take notice. Offering excellent customer service goes hand-in-hand with providing quality products to appeal to more purchasers (Nuridin, 2018). The company can strive to be ahead in terms of quality production by adhering to the directives of ISO 9001, which is the international measure that defines requirements for a quality management system. Adhering to the international standard will help to offer services and products that meet the regulatory and consumer requirements (ISO 2020). Achieving the quality management principles may require the company to consider several factors, including leadership, customer focus, relationship management, and evidence-based decision making among other important aspects. Improving quality may not be an easy process and may require so much resources but once the customer realize that they can get the best from a particular brand they will stick with it for so long.

Marketers can achieve customer loyalty more effectively by making the buyers feel special, hosting exclusive events for loyal purchasers, valuing the buyers’ feedback, and using modern technology. The marketers must understand that consumers are more emotional than rational when selecting their favorite brands (Abu-Alhaija, Nerina, Hashim & Jaharuddin 2018). The firm, therefore, should encourage buyer loyalty by offering more positive emotions regarding the services or products by issuing personal touches such as remembering their names, birthdays, likes and dislikes, and by calling them or sending them flowers or other gifts on special occasions. It is highly likely that making the customers feel special will be appreciated by loyal buyers. The organization can improve its customer loyalty by hosting special events for the loyal buyers, although this may depend on the business capacity (Abu-Alhaija, Nerina, Hashim & Jaharuddin 2018). The company, for example, can organize special dinners, seminars, or parties tailored to the buyers’ desires and the products. A company that manufactures and sells utensils, for example, may host a party where a local chef offer lessons on how to prepare the consumers’ favorite dishes. The organization increases its chances of strengthening customer loyalty by valuing the customers’ response and opinions because every person loves to be heard (Abu-Alhaija, Nerina, Hashim & Jaharuddin 2018). The buyers become attached to the business when they feel that their input has considerable effects, and when they feel that they have personally added onto the company’s growth and development. More fundamentally, an organization increases its chances of maintaining buyer loyalty by using advanced technology. The company, for instance, may increase its customer loyalty by making it possible for buyers to access quick responses for their queries through the company’s website or mobile apps, and should interact with buyers via social media platforms (Abu-Alhaija, Nerina, Hashim & Jaharuddin 2018). Overall, doing things differently and embracing mechanisms that appeal to more consumers make it easier to achieve customer loyalty.

Research evidence on customer loyalty requires marketers to distinguish their operations from competitors, keep the buyers well-informed, creating brand value, and creating customer loyalty programs. The marketers should remember that the competitors try as much as possible to provide similar products and services, which makes it necessary to create structures that make the company different (Magatef & Tomalieh 2015). Marketers and companies can make their operations different by using easily identifiable logo, sleek designs, applying innovative marketing practices, and developing products with extra features that make it easy for buyers to remember the firm. A company should strive to keep the buyers well-informed through various avenues such informative newsletters, websites, blogs, and social media. The avenues should give enough information regarding upcoming events, sales, products, and promotions. The marketers should also try to make the content appealing, informative, useful, and entertaining to attract more buyers (Magatef & Tomalieh 2015). Businesses should remember to create a brand value that many buyers appreciate to achieve customer loyalty. Business leaders and marketing managers should know that buyers become loyal consumers because of some perceived benefits and values associated with the brand, and should be in a position to recognize the values that most loyal customers appreciate make them even better. Companies should rely on research evidence to formulate customer loyalty programs that provide loyal consumers with rewards (Magatef & Tomalieh 2015). The business leaders should know that every person loves to be treated differently and creating programs to appreciate each loyal buyer may go a long way in strengthening the loyalty (Magatef & Tomalieh 2015). Above all, marketers should remember that loyal consumers are the backbone of the organization and are priceless. They keep the business in place, bring in new purchasers, and widen the firm’s profitability, as such, any organization needs to act in every way possible to nurture its loyal buyers.   

Marketers should work hard to apply the research evidence on consumer loyalty because of the numerous benefits they are likely to gain. The marketers and the companies at large will realize that loyal buyers purchase the firm’s products more often and usually in larger quantities (Nobar & Rostamzadeh 2018). The buyers would believe that the company offers them the best products or services in terms of quality and even quantity, and may not want to associate with other organizations (Nobar & Rostamzadeh 2018). It is important to work towards strengthening customer loyalty because the buyers are less likely to shift to the organization’s competitors even when given incentives. Working towards achieving and sustaining customer loyalty is beneficial to the entire firm because buyers are willing to embrace price escalations and other adjustments, even when the competing firms offer more appealing terms and conditions (Nobar & Rostamzadeh 2018). A company increases its chances of widening its market base by paying considerable attention to how it develops its customer loyalty because buyers tend to recommend the brand to others. In addition, improving customer loyalty makes it possible for the firm to lower its marketing costs, thereby creating the chance to focus on other areas that would increase performance (Nobar & Rostamzadeh 2018). The numerous benefits that come with customer loyalty should encourage marketers and organizational leaders to pay attention to the research evidence regarding the importance of developing the urge in buyers to stick with the firm.

Some multinational corporations are already using well-developed structures to improve and manage customer loyalty. One of the primary goals for Apple, for instance, is to nurture and advance consumer loyalty. The company acknowledges the merits of consumer loyalty and responded by creating the Apple’s Loyalty Program, which seeks to increase the attachment buyers have with the brand (Apple 2020). The program basically offers significant discounts to buyers who use thousands of dollars to purchase Apple products, and categorizes buyers into three sections depending on how much they use on products (Apple 2020). Buyers are eligible for the initial category, red, when they use at least $5000 in a year on Apple’s products (Apple 2020). The second level, green, is for buyers who use at least $35,000 in a year, and the third category, blue, comprises of buyers who spend at least 200,000 on Apple products within a year (Apple 2020). The company offers discounts on products such as iPhones, iPads, Macs, and other accessories (Apple 2020). The discounts on Macs, for instance, have increased by 6-8%, depending on the buyer’s category, while discounts on related accessories has widened by 5-10% (Apple 2020). The initiatives by Apple indicate that it relies on research evidence to achieve customer loyalty and to improve its performance.

Amazon is another example of a multinational corporation that employs effective customer loyalty directives to appeal to more purchasers. The company launched the Amazon Moments in 2019 as a new consumer loyalty program that would help the retailer get and retain more buyers (Amazon 2020). The program is similar to Apple’s in the way it entails rewarding loyal buyers depending on how well they meet certain brand needs. Increased indulgence with Amazon will give marketers a good chance to better know their market and consumers (Amazon 2020). The new program pays customers to shop by offering them credit incentives to complete particular actions designated to a product or the brand (Amazon 2020). Amazon tested its new customer loyalty program when it partnered with Disney to market its games. Buyers received Amazon credits after reaching certain stages in the online game, which encouraged buyers to interact with it farther (Amazon 2020). Disney recorded huge profits following the deal, while Amazon learned that its Amazon Moments is practical and effective. The success Amazon experiences with its consumer loyalty program suggest that the marketers understand and appreciate the need to adhere to research evidence on the importance of loyalty in business.

Conclusion

Creating an inclusive customer loyalty program that attracts buyers to purchase increases a company’s chances of developing stronger bonds with the buyers. Marketers should understand how customers form loyalty based on different factors, including the nature of the product and the service, or brand and ease of distribution. The marketers should also know that buyers are likely to show loyalty because of the price and the relationships they have with employees at the company. Businesses should rely on research evidence to build how they develop buyer loyalty. The firm should strive to offer excellent customer services, distinguish its operations from competing firms, keep the buyers well-informed, and make the buyers feel special. The company should also try to host events for loyal purchasers, value consumer feedback, utilize modern technology, formulate buyer loyalty programs, and formulate brand value. Multinational corporations that are already using effective customer loyalty programs such as Apple and Amazon experience incidences where buyers form stronger relationship with the company, and where they are less likely to relate with other companies even when things change. The business is also likely to witness situations where the buyers recommend the brand to other customers, and where the company spends less on marketing practices.

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