Polygamy Loyalty Essay: The Benefits Of Customer Loyalty

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What is Customer Loyalty? Customer loyalty is both an attitudinal and behavioral tendency to favor one brand over all others, whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand. Customer loyalty encourages customers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience, helping attract customers to familiar brands in the face of a competitive environment. There are basically two types of Loyalty - Monogamous vs. Polygamous Loyalty. In simple terms, Monogamous Loyalty is when a customer is 100% loyal to a brand and do not purchase any other brand at all, whereas Polygamous Loyalty is when a customer consistently…show more content…
A more realistic goal for businesses is to make customers as loyal as possible – to maximize customer share of wallet, frequency of purchase and overall profitability. Benefits of Customer Loyalty There are multiple benefits of having more loyal customers for the business, such as:  Acquiring a new customer will cost more than maintaining an existing one  Loyal customers are less price-sensitive  Loyal customers are more likely to give free word-of-mouth advertising  When a new product is launched, loyal customers will be more likely to try that product So the above points tell us the benefits that businesses are going to achieve by having more loyal customers. But are there any benefits of loyalty for the customers? Yes, there are, such as:  Minimize the perceived risk, increase confidence that the organization will not produce a faulty product and gives a sense of satisfaction  Save decision effort by substituting repeated and conscious decisions  Loyal customers can get some special benefit such as free or faster delivery, more discount, free goodies, etc. What are the different ways of measuring and managing Customer
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