Brand Loyalty Definition

Brand Loyalty refers to the strong and consistent preference and repeat purchase behavior of customers towards a specific brand's products or services due to their positive experiences and emotional connection with that brand.

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Brand loyalty is what every business owner wants. It’s the golden ticket to maintaining a consistent, profitable customer base. Brand loyalty benefits include more sales, more referrals, and more profits. 

What is brand loyalty?

Brand loyalty is the tendency of customers to buy a seller’s products because they trust the seller. Put another way, buyers with brand loyalty buy a seller’s product out of loyalty to the seller. The buyer may base this belief on things like:

  • The quality of the products the seller offers
  • The perception of the seller as a good, trustworthy, or dependable company
  • The experiences they’ve had with the seller or the seller’s products

Brand Loyalty versus Customer Loyalty

Is brand loyalty the same as customer loyalty? While both involve customers who keep coming back, there are important differences between the two. 

Customer loyalty involves customers who consistently buy a seller’s products because the price is low or right. The customer may not believe in the brand or even think that the products are better than the other products out there. What keeps them coming back? The unbeatable price. If the price goes up, the customer may buy a competitor’s product. If the product is no longer convenient to buy, the customer might decide to buy another brand. After all, it was the price and convenience, not the product, that really kept them coming back for more.

Customers with brand loyalty believe in the product or the seller so strongly that they keep coming back no matter the price. If the product is no longer convenient to buy, then the customer may jump through hoops to get the product. In the customer’s mind, it’s worth it because the brand is that amazing. 

How to Develop Brand Loyalty

Every business dreams of having a loyal customer base. Brand loyalty is the golden ticket because customers are in it for the long-haul. So how do you develop brand loyalty? There’s no magic formula, but here are techniques that you can use to help develop brand loyalty:

  • Offer rewards programs. Everybody loves free stuff. Offer your customers rewards or coupons for buying your products. 
  • Develop brand recognition. You don’t just want people to remember your business’s name (although that is helpful). You want them to think about certain things (e.g., tasty food, dependability, or good quality) when they encounter your brand. 
  • Engage with your customers. Don’t just wait around for the customer to come to you to interact with them. Send them flyers in the mail, newsletters in their inbox, or text messages to keep the communication channels open. 

Another key to creating brand loyalty is to start off strong. We’ve helped over 500,000 entrepreneurs like you get set up for success. We can’t stock the shelves for you, but we can help you with that pesky paperwork. 

Form a limited liability company or corporation with our Business Formation Service. How does it work? You provide us with some information on your small business, then we put together a selection of formation offerings. Next, you select the package that you want and pay the affordable fee (plus the state filing fee). We send in the paperwork, and you’re on your way to being a proud business owner.

Summary

Brand loyalty is when customers continue to buy a product because they’re loyal to the brand. In other words, they keep buying the product because they believe in the brand or the product. Customers keep buying the product even if the price goes up or it’s no longer convenient to buy the product.

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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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