When customer have enough choice about different brand under one roof this will bound him to switch to other brands which are available in the market. So the store loyal customer always increases the brand loyalty because he thinks that all benefit of his brand is better than other brands. The brand loyalty
Some may make a purchase and some may not. Some others may come later and make a purchase. This metric is a good indication that they are interested in your offering beyond the initial visit. Loyalty is never easy to achieve. Returning visitors shows that the outlet is in the customers mind for future interests.
First of all customer means A person who buys goods or services from a shop or business, loyalty means the state or quality of being loyal, faithfulness to commitments or obligations. So Customer loyalty is the key objective of customer relationship management and describes the loyalty, which is established between a customer and companies, persons, products or brands. “Customer loyalty is an essential aspect in any organization whether it is offering a good or providing a service. “Many organizations are looking for various ways to increase their customer loyalty as it has a positive effect on the profitability of the organization.” (Gremler 1996: 171, Abdullah et al. 2000: 826).The individual market segments should be targeted in terms of developing customer loyalty.
It focuses on retaining and enhancing existing customers and improving relationships with them rather than on acquiring new ones (Vavra, 1995). It involves keeping easy communications with customers regarding their queries and complaints and resolving potential disputes to customers’ satisfaction (Garfield, 1990). Good customer relationship encourages customer to buy the product or service and to recommend it to others, which adds to an increase in company income, company growth or revenue and reputation. This customer recommendation by word of mouth or good and positive feedback on web 2.0 social networks is free advertisement for company. According to Gitomer (1998) companies try to get customer’s loyalty as keeping existing customers is cheaper than finding new ones, and having a base of loyal customers for one product or service improves sales for the company's other offerings.
2.2.3 Brand Loyalty High product sales can be explained in two different principles; the first concerned by many people buying the brand and the second concerned by that a few buying a lot. Ford (2005) referred the second principle to brand loyalty. A brand loyalty is a core factor in brand equity and should be taken in consideration when setting a value on a brand (Aaker, 1996). He continues saying that a highly loyal customer base is expected to bring in stabile sales and profit streams. When talking about loyal customer we can archive two important aspects – retain of customers and entry barrier.
It also exposed that link exist between customer satisfaction and customer loyalty. With help of this study we can finish that services quality leads to happy customers and customer satisfaction leads to customer loyalty. In today s’ compititative world banks
(1)Explain what is meant by customer loyalty and why it is important for the business Customer loyalty is both an attitudinal and behavioral inclination to support one brand over all others, whether because of fulfillment with the item or administration, its accommodation or execution, or just recognition and comfort with the brand. Customer loyalty inspires purchasers to shop all the more reliably, spend a more prominent offer of wallet, and feel positive around a shopping experience, helping attract consumers to familiar brands in the face of a competitive environment. It is important for the business to get more customers and improve business. There are some important reasons why customer loyalty is important for business are listed below. Repeat business Loyal customers will buy products over and over after some time.
They point to the benefits of improved communication, better understanding customer expectations and perceptions of service quality leading to improved sales, increased profitability, reduced customer turnover, service cost and time. Maintaining existing loyal customers giving rise to a stable customer base is widely acknowledged as one of the key benefits of good customer relationships. Tao F (2014) refers to a study which showed that the cost of developing a new customer is six times higher than maintain an existing customer. While a loyal customer is less costly they also become advocates for the brand and can generate new business through recommendations to others. With good customer relationship a company gains better information and insight into the customer, their behaviours, preferences and needs.
Value of Customer Loyalty Yang, 2004 mentioned that the customer loyalty can be generated through improving customer satisfaction and offering high product or service value. He further suggested that the firms may focus on five key dimensions to identify the customer loyalty by providing quality customer services, performing the service correctly by executing transactions accurately, providing an appropriate range and offering features to target customers and ease of use and security or privacy. Previous studies Service Quality in the banking sector: the impact of technology on service delivery (Joseph, McClure and Joseph, 1999). The study examined the role that technology plays in Australian banking and its effect on the delivery of the perceived
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 consumers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience, helping attract consumers to familiar brands in the face of a competitive environment. Every supplier wants to create and retain a loyal customer who engages in continued profitable business with him. Customer Loyalty is the measure of success of the supplier in retaining a long term relationship with the customer. Thus customer loyalty is when a supplier receives