When buying a product, if the consumer comes back to the same brand every time because of the trust they have with them, we can call it as brand loyalty. Normally they are not going to the competitors.

As an example,  let’s look into mobile phone industry. If you want to buy a new mobile phone, there are so many brands to choose from. However, most of the time we tend to buy the brand that we love and the one we used in the past. Therefore brand loyalty is really important to a company for surviving in a competitive environment.

The benefits of brand loyalty

It brings down the marketing cost

Loyal customers often recommend the brand they love, to their family and friends. This is commonly known as word-of-mouth marketing. It helps companies to gain new customers without the help of expensive marketing strategies.

It Increases the revenue.                                        

A loyal customer selects the same brand, when buying a certain product. Sometimes they like to choose the same brand for a lifetime if it’s available. We call it as Customer Retention. It leads to boost sales and reduce the marketing cost at the same time which will increase the revenue of the company.      

The following video demonstrates the brand loyalty as a real life example