Who Cares About Brand Loyalty?


Share on LinkedIn

ForeSee, one of the powerhouses in customer satisfaction surveys, came out with their 2011 e-retailer holiday assessment not too long ago. There were some big increases (Amazon.com, Avon, QVC, Apple, JC Penney), some significant declines (Netflix, Gap, Overstock), and a lot of good information about how the marketplace did this season in the eyes of the consumer.

Surveys like this tap into a part of the population that has a propensity to provide feedback and it is a goldmine for companies that take customer service seriously. The few minutes each customer spends to respond to the survey questions help shed important light on what companies are doing right and what needs to change. It also presents a lot in the way of clues to how customers feel about the brands themselves, how well they were treated, and how likely they are to purchase again.

What defines brand loyalty is whether or not the customer will continue purchasing products or services from a seller, but there is a lot more that factors into the decision about where a customer’s future dollars are spent. Brand loyalty is part of a complex equation that takes into consideration historical experiences, current experiences, perceived return on investment, product/service availability, value for the dollar, company reputation, and interpersonal relations, each of which has the power to sway overall customer satisfaction in one direction or another. It’s also essential in expanding brand awareness, gaining consumer confidence, and generating positive word of mouth to attract even more brand loyal customers.

Brand loyalty is fundamental. Customer service satisfaction and brand loyalty go hand in hand. The happier the customer, the more likely they are to stick with a company for years or even a lifetime.

Brand loyalty is numerical. Typically measured as the number of long-term customers a company has at any given point in time, brand loyalty can also be quantified in terms of the sales generated through repeat business.

Brand loyalty is experiential. What the customer perceives from their own experience is reality to them, and based on that perception, they can be the best or worst advertising a company can have.

Brand loyalty is emotional. In order for customers to pledge allegiance to one brand, they have to believe in it and feel good about it. In other words, “If you make me happy, I will keep coming back and I will tell everyone around me about your wonderful company. However, if you tick me off, or I don’t think you care about me, I will leave faster than you can blink and I will take all of my friends, family, and anyone else I can find with me.”

Brand loyalty is perpetual. Customers want to have long-term relationships with their service and product providers because it’s a lot of work and stress to have to continually shop around from one company to the next. It’s also much more cost effective to market to existing, loyal customers rather than having to replace those lost to poor service or other fixable conditions.

Brand loyalty is intuitional. Companies need to have a certain intuition when it comes to meeting customer needs and they need to really, really listen. Surveys, round tables, and voice of the customer initiatives take the pulse of customers on a regular basis and let companies know if their approach is spot on or in need of a navigational redirect.

Brand loyalty is integral. In order to build a loyal customer base, a company’s personnel have to know, understand, live, and breathe that goal and take the steps to get there. For most companies, their very survival depends on it.

Brand loyalty is survival. Companies with higher brand loyalty numbers are clearly doing something right and have the bottom line numbers to show for it. Their approach to service delivery makes it easier for them to keep their customers and they are also quite effective at stealing less-satisfied customers from their competition.

Brand loyalty is a simple concept but it is also a complex thing made up of many working parts (service, satisfaction, price, value, reliability) that are essential for a company’s survival. For companies who have been lax in any aspect of their service delivery and have seen their popularity tumble, it is possible to win over alienated customers and bring new ones on board. It takes persistence, patience, and a dedicated campaign to fix the damage, but it is do-able with the right mindset and the right people.

Who cares about brand loyalty? Hopefully, we all do.

Republished with author's permission from original post.

Teresa Sinel
Teresa Sinel is the Director of Operations, Analytics and Innovation for VIPdesk, the award-winning pioneer of home-based virtual customer care solutions for global brand leaders committed to enhancing their brand experience. Serving over 40 client programs and 10 million customers, VIPdesk specializes in delivering Concierge Programs, Contact Center Services, and loyalty programs for national brand leaders in the travel, auto, financial services, real estate and retail industries.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here