Brand creation and loyalty have been the talk of entrepreneurs and marketers for a long time. Over the years people have concentrated so much time and effort, that the definition and understanding customer loyalty that it has been stretched to a level, where it is both confusing and overrated. A.G. Lafley, Roger L. Martin in their article published in the Harvard Business Review points out that even though marketers have been trying to appeal to customers with new products the customers purchasing decision is almost spontaneous. (Lafley & Roger, 2017)
Starting with a spontaneous purchase of a product the customer is highly likely to choose the same product next time if it fulfils their need. Each time the product is repurchase, the competitive advantage of the product over its rival increases as customers care less for other products. One reason is their perceived risk has been averted as they have already tasted it. While understanding brand loyalty it is also important to understand the term competitive advantage. Having competitive advantage is not possible for ever. Products and organizations have to change with times and behaviour demand of the customer. "To keep your customers–and to attract new ones–you need to remain relevant and superior. (Lafley & Roger, 2017)” The only way to have competitive advantage is to keep the customers repeat their purchasing habit and keep competitors at bay by playing to the strength of company’s i.e. core competencies.
Loyalty has more to do with easier access of product rather than brand. It has been found that customers choose products that are easiest to purchase. As an example, most Nepalese when going to a restaurant look through the menu and order momo at the end. This is because they have done it before and is the easiest available choice. Choosing momo also averts the perceived risk of a consumer as this has already been tasted before. Marketing defines that great products are what makes life easy so having easier access and having more competitive advantage is more important than brand loyalty.
Michael Schrage in his article on ‘Why Customer Loyalty Program Isn’t Working’ presents another angle on brand loyalty. He comments that loyalty is an ethical matter rather than just a data to manipulate customers and market share. It is a co-created tool that can be used to create a healthy relationship between customers and companies and it depends on both parties as it is a two way street. (Schrage, 2015)
Thus it is clearly evident that brand loyalty has changed today from what it used to be 10-15 years before where people perceived brand to be better than other goods and preferred it. Before goods produced in Germany and the UK were purchased without any second thought as they signified quality. But these days people will rather use a cheaper and more accessible product than become loyal to brands. For example apparels like jeans, mobiles etc.
Reference
Lafley, A. G., & Roger, M. L. (2017, Jan-Feb). Customer Loyalty Is Overrated. Harvard Business Review . Retrieved from hbr.org/2017/01/customer-loyalty-i...
Schrage, M. (2015, March 10). Why Your Customer Loyalty Program Isn’t Working. Harvard Business Review . Retrieved from hbr.org/2015/03/why-your-customer-...
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Brand creation and loyalty have been the talk of entrepreneurs and marketers for a long time. Over the years people have concentrated so much time and effort, that the definition and understanding customer loyalty that it has been stretched to a level, where it is both confusing and overrated. A.G. Lafley, Roger L. Martin in their article published in the Harvard Business Review points out that even though marketers have been trying to appeal to customers with new products the customers purchasing decision is almost spontaneous. (Lafley & Roger, 2017)
Starting with a spontaneous purchase of a product the customer is highly likely to choose the same product next time if it fulfils their need. Each time the product is repurchase, the competitive advantage of the product over its rival increases as customers care less for other products. One reason is their perceived risk has been averted as they have already tasted it. While understanding brand loyalty it is also important to understand the term competitive advantage. Having competitive advantage is not possible for ever. Products and organizations have to change with times and behaviour demand of the customer. "To keep your customers–and to attract new ones–you need to remain relevant and superior. (Lafley & Roger, 2017)” The only way to have competitive advantage is to keep the customers repeat their purchasing habit and keep competitors at bay by playing to the strength of company’s i.e. core competencies.
Loyalty has more to do with easier access of product rather than brand. It has been found that customers choose products that are easiest to purchase. As an example, most Nepalese when going to a restaurant look through the menu and order momo at the end. This is because they have done it before and is the easiest available choice. Choosing momo also averts the perceived risk of a consumer as this has already been tasted before. Marketing defines that great products are what makes life easy so having easier access and having more competitive advantage is more important than brand loyalty.
Michael Schrage in his article on ‘Why Customer Loyalty Program Isn’t Working’ presents another angle on brand loyalty. He comments that loyalty is an ethical matter rather than just a data to manipulate customers and market share. It is a co-created tool that can be used to create a healthy relationship between customers and companies and it depends on both parties as it is a two way street. (Schrage, 2015)
Thus it is clearly evident that brand loyalty has changed today from what it used to be 10-15 years before where people perceived brand to be better than other goods and preferred it. Before goods produced in Germany and the UK were purchased without any second thought as they signified quality. But these days people will rather use a cheaper and more accessible product than become loyal to brands. For example apparels like jeans, mobiles etc.
Reference
Lafley, A. G., & Roger, M. L. (2017, Jan-Feb). Customer Loyalty Is Overrated. Harvard Business Review . Retrieved from hbr.org/2017/01/customer-loyalty-i...
Schrage, M. (2015, March 10). Why Your Customer Loyalty Program Isn’t Working. Harvard Business Review . Retrieved from hbr.org/2015/03/why-your-customer-...