Brand Loyalty Definition

Brand loyalty “implies a consistent repurchase pattern of the brand as a result of positive affection towards the brand” according to the definition given by Mellens, DeKimpe and Steenkamp, 1996.

Brand loyalty is a situation where a consumer consistently buys from the same brand over time rather than buying from different suppliers from the same category. Loyal customers do not buy from various sellers and do not like to substitute for any other brand in case their brand product is unavailable.

Brands experiences repeated purchases from their loyal customers even when there is an increase in their price or decreased inconvenience. Loyal customers do not get influenced by the marketing efforts of its competitor brands, thereby ensuring there is continuous use of its brand products.

Brand Loyalty Advantages

When a company establishes a strong customer base who is faithful to its product, it brings in significant advantages:

1. Increase in the margin

Brand loyalty makes customers come back to your product, making it possible for a brand to earn more revenues without actually having to spend more on marketing. According to a SuperOffice survey, 52 % of respondents said that customer retention was their highest source of revenue. 

2. Better Brand Recognition

When loyal customers start talking about your products, it creates a higher brand recognition of your products. The customers who are loyal to your brand recommend your products to family and friends, giving it added marketing at no extra cost. Ultimately, this brand loyalty will win positive word of mouth that makes your brand more popular and easier to recognize in your market. 

3. Competitive edge 

Brand loyalty is one of the best forms of competitive advantage your company can possess. When customers are emotionally related to a brand, it leads to a strong bond with the brand, and a competitive advantage for that particular brand as customers do not feel the need to shift to different brands.  

Brand Loyalty example

A great example of a brand that enjoys great brand loyalty is Caterpillar. For the last 14 years, Caterpillar is holding the top spot among the five best-selling equipment manufacturers in the world. Caterpillar has maintained consistency and quality, which has led the company to reach the summits of its industries. It has succeeded in establishing itself as a brand with top-tier quality and customer satisfaction.