The Importance Of Customer Loyalty

According to Oliver (2010);

Customer loyalty defined as- “A deeply held commitment to rebuy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand, or same brand-set purchasing despite situational influences and marketing efforts having the potential to cause switching behavior”.

This definition has clearly depicted that customer loyalty is directly related to rebuild or re-patronizes a service due to having a better experience in the preceding consumption. Here, the effects of promotion and marketing of others may turn into ineffective on the loyal customers (Uncles et al., 2003). Loyal customers usually prefer brands and once the loyalty has been established, based on the brand value

Building loyalty with key customers has become a core-marketing objective shared by key players in all industries catering to business customers” (Bansal and Gupta, 2001). Thus, it is directly evident that, for longevity of the success of business customer loyalty is now indispensable. Customer loyalty would increase the positive image of the business and in turn the profitability (Al-Rousn, 2010; Singh, 2006).

Marketing cost is a major expenditure for the firms. In order to attract new customers the firms need extensive marketing strategies and tool, such as; cost of advertising, the cost of a promotional campaign, the cost of personnel selling to entertain new prospects, and cost of inefficient dealings during the customers’ learning process and so forth (Graham, 1995). In contrast, for loyal and older customers efficiency and effectiveness achieved due to less marketing issues. The loyal clients usually do not much care about the product or service promotion rather they focus on the caliber. Thus, through maintaining quality and satisfaction the firms can retain the loyal customers for long time and thus, the loyal customers ensure the sustainability of the

Some major types of loyalty are known as; multi-brand loyalty, behavioral loyalty, attitudinal loyalty and true loyalty (Al Rosen, 2010; Chi, 2005). Among these types, multi-brand loyalty is less focused on one particular brand or services; rather these types of customers prefer verities, they mostly switch between several brands. This type of customers are not loyal for one particular brand, thus they do not bring larger revenue for the business (Al Rosen, 2010). In other words these types can be described as “Un-loyal” customers or having low loyalty for particular business or firm (Griffin and Herres, 2002; Chi,