BRAND LOYALTY

One of the most important components of brand value is brand loyalty. Brand loyalty is one of the building blocks of brand value in terms of increasing the brand value of the company with the increase of the loyalty of consumers to the company.

The concept of brand loyalty defines the trust and belief of the consumer towards the brand. Brand loyalty is a psychological and emotional bond with the brand as consumers continue their brand buying continuity.

One of the most important factors that will ensure profitability and continuity for companies is to create loyal consumers. Because nowadays, the brand value of a company is determined according to the loyal customers of that company. In order for companies to clearly identify their loyal consumers, it is necessary to conduct consumer segmentation studies. Consumer segmentation is an important criterion in determining loyalty programs. The strategies of the loyalty program to be developed are made depending on the customer segmentation.

In general, the market segmentation of a branded company can be done as follows:

  • Non-Customers: Consumers who prefer competing firms within the target audience.
  • Priority for the Price of the Product or Service: Those who make the distinction by price when choosing the brand.
  • Passive Loyal Group: Those who prefer the brand only because they are used to it.
  • Unstable: Those who constantly make different choices among several brands when shopping.
  • Loyal: Those who prefer the brand without price sensitivity by passing tangent to competitors in any case.

The main purpose of brand loyalty is to create a customer portfolio without brand sensitivity, to increase the approach of the indecisive and loyal ones towards the brand positively and to have more consumers who will prefer the product or service.