Why is brand loyalty important?
Brand loyalty is important for three main reasons: • Higher sales volume The average U.S. company loses half of its customers every five years, equating to a 13 percent annual loss of customers. This statistic illustrates the challenges companies face when trying to grow. Achieving even a 1 percent annual growth requires increasing sales to remaining and new customers by 14 percent. Reducing customer loss can dramatically improve growth and brand loyalty, which leads to greater and continual sales since the same brand is repeatedly purchased. • Premium pricing ability Studies show that as brand loyalty increases, consumers are less sensitive to changes in a brand’s price. They are willing to pay more for the product because they perceive unique value in the brand that no other alternative can provide. Additionally, brand loyalists buy less frequently on cents-off deals — these promotions only subsidize planned purchases. • Customer retention Brand loyalists are willing to search for th
