I had here earlier an article on brand loyalty and why brand loyalty is the ultimate goal a company sets for a branded product, on main reasons why brand loyalty is important and some action-steps to take in order to turn repeatead customers into brand-loyal customers.

Meanwhile I just find an interesting post on The Diva Marketing Blog, on the subject, which quoting Don Schultz, professor at Northwestern University and president of Agora Inc, lists several reasons why consumers are brand loyal, even though I would call them repeated customers in these cases:

• The product is the only one available – such as in a monopoly marketplace situation
• Consumer inertia – repetitive consumer behavior and the path of least resistance
• Indifference – all available brands are considered alike, cost the same, are a commodity product
• Customer satisfaction – customer believes there is good price/value relationship and the product or service is consistent over time
• Brands are a badge of honor or identifier – customers want to be affiliated with the brand. Those reasons may range from ego to self confidence to being a member of a special group. Harley-Davdison is a great example. How many other brands do you know of where customers actually have a brand logo tattooed on their bodies?

My view is that brand loyalty doesn’t exist for many products and services, and is declining for those who have a modicum of it, because the marketing organization and the brand are not loyal to the customer. Brand loyalty is a reciprocal process, with both buyer and seller getting what they want.

The article is ending up with a question to consider if you have, or are thinking about developing a loyalty program:

Can you keep your promises? And what happens when you can’t?

Well I totally agree with that, with the the mention that branding is making promises and keeping them in the first place, and this question has its place before even starting your business or branding campaign.

Read full Brand Loyalty is a Two Way Street article.

Tag: Brand Loyalty