Is Customer Loyalty dead?

It is no secret that some of the more recognized brands that we enjoy today were built largely on customer loyalty.  Customer loyalty occurs in a business when a customer consistently receives a positive experience during the purchase and use of a product. 

This loyalty then fuels that customer to share his experience resulting in repeat and referral sales for the business.  This increases the business’s customer retention capacity and hence allows the company to experience profits.

But with so many competing customer priorities; is customer loyalty dead?  According to the research company, Access Development, while customer loyalty is not dead, it is definitely not what it used to be. 

Customer loyalty is affected by several shifts in the consumer market.  Firstly, there is a proliferation of brands with claims to do every imaginable thing to satisfy the consumer market.  Then there are other factors such as price and convenience, customer service and relationships, customer rewards and the business’s reputation which also affects customer loyalty.

Customer loyalty is further affected by competing messages.  Customers are constantly bombarded with messages from multiple channels and multiple companies, claiming that they can do it better than their competition.

While these factors are important, the presence of customer loyalty in a business is mostly attributable to an effective marketing programme which is a combination of the factors previously mentioned as well as marketing activities including social media, various promotional activities as well as both traditional and non-traditional advertising. 

To legitimize the brand story, customer testimonials may also be incorporated.  Potential customers tend to believe existing customers when they help to tell the brand’s story.  This also helps to build the brand’s reputation.  Rewards too are a significant factor to ensuring customer loyalty.  As long as the customer feels appreciated, loyalty is almost guaranteed.