Achieving Brand Loyalty: A Continuous Challenge for Every Business - Essay Sample

Introduction

According to (Watson et al., 2015), the primary marketing goal of each company is to attain customer loyalty, whereby consumers become devoted to a certain brand and hence make recurrent purchases over time regardless of price change. However, the process of building loyalty and benefiting from it is still a continuous challenge. Achieving brand loyalty should be a top priority for every business, which is a continuous process that requires the company to properly engage the customers with excellent customer service and continuous output of high quality products. Despite the price being a factor, once a brand is seen as ‘’preferred’’ or ‘’trusted’’, it manifests to override all other factors including price (Watson et al., 2015. A successful business should be able to maintain and increase its customer base via a loyal correspondence, beneficial to both the customer and the company.

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Strategies for Earning Customer Loyalty

Ensuring customer loyalty requires the company to offer quality customer service all the time. Therefore, the company should hire employees who are polite and respectful to customers the assistance they need (Edmiston, 2015). The company should demonstrate care for its customers by listening and executing change where it is necessary. Besides, when customers give feedback for a service or brand, the company should make genuine considerations of the comments and find out if there is something that the customers did not like. Customers should also be able to easily locate contacts for getting in touch at any time (Horst & Duboff, 2015). More importantly, the company should exercise honesty as a strategy to ensure customer loyalty. When things go wrong, the company should maintain transparency with its customers and communicate updates.

Strategies for Measuring Customer Loyalty

There are several strategies that a company can use to measure customer loyalty. Net Promoter Score (NPS) measures customer loyalty by indicating the probability of the customer recommending the brand to their friends (Karjaluoto et al., 2015). The metric requires the customer to answer simple questions assigned values between 1 to 10. Additionally, the Repurchase Ratio (RR) measures customer loyalty by dividing the ratio of repeat purchasers over single purchasers. Besides, a company can also use the Upselling Ratio (UR) to measure customer loyalty (Karjaluoto et al., 2015). This metric tracks the ratio of the number of customers who have purchased more than one type of product then dividing by customers who have purchased only one type of product.

References

Edmiston, D. (2015). Strategic digital marketing. Journal of Product & Brand Management. https://www.emerald.com/insight/content/doi/10.1108/JPBM-06-2014-0625/full/html

Horst, P., & Duboff, R. (2015). Don’t let big data bury your brand. Harvard Business Review, 93(11), 78-86. Retrieved May 29, 2020, from https://www.slideshare.net/ssvy2k/dont-let-big-data-burry-your-brand

Karjaluoto, H., Ulkuniemi, P., & Mustonen, N. (2015). The role of digital channels in industrial marketing communications. Journal of Business & Industrial Marketing. https://doi.org/10.1108/JBIM-04-2013-0092

Watson, G. F., Beck, J. T., Henderson, C. M., & Palmatier, R. W. (2015). Building, measuring, and profiting from customer loyalty. Journal of the Academy of Marketing Science, 43(6), 790-825. Retrieved June 01, 2020, from https://link.springer.com/article/10.1007/s11747-015-0439-4