What is Brand Loyalty and How to Build it?


Do you ever wonder why some customers remain loyal to specific brands while others switch around? Well, the answer lies in building strong relationships with your customers. Brand loyalty is crucial for any business’s success and can increase sales, customer retention, and advocacy. In this article, we’ll dive into what is brand loyalty and how you can build it effectively. So sit tight and read on to learn more!

What is Brand Loyalty?

It is the tendency for customers to continue to purchase a product or service from the same brand over time. It can be difficult to build brand loyalty, but it is worth it for businesses because loyal customers are more likely to spend more money with a brand and recommend it to others.

There are a few key ways to build brand loyalty:

  1. Be consistent in building your brand. Customers should always know what to expect from your products or services.
  2. Offer quality products and services. This one is self-explanatory – if your product or service is good and provides value, customers will be more likely to come back for more.
  3. Provide excellent customer service. Again, this goes back to giving customers a positive experience with your brand. If they feel valued and appreciated, they’re more likely to stick around.
  4. Keep your prices competitive. This doesn’t mean you need to be the cheapest option on the market, but you do need to offer value for your price point.
  5. Pay attention to feedback and use it to improve your offering. Customers will let you know what they want, so listen and make changes accordingly.

The Benefits of Brand Loyalty

There are many benefits of brand loyalty, including:

  • Increased sales:

    Brand-loyal customers are more likely to make repeat purchases and recommend the brand to others.

  • Improved customer lifetime value:

    Customer lifetime value (CLV) is the total value of all the business a customer brings in during their lifetime. Brand loyal customers have a higher CLV because they stay with the brand longer and spend more over time

  • Reduced costs:

    It costs less to retain existing customers than it does to acquire new ones. Businesses can reduce marketing and advertising expenses by focusing on building brand loyalty among their current customer base.

  • Improved margins:

    Brand-loyal customers are less price sensitive and more likely to purchase premium products or services. This allows businesses to charge higher prices and enjoy improved profits.

How to Build Brand Loyalty

There are a number of ways to build brand loyalty, but some methods are more effective than others. Here are a few tips on how to create a loyal customer base:

  1. Play to your strengths and values:

    Underestimating the customers is one of the worst things an organization can do while building brand loyalty. Customers can tell when a brand is being unoriginal or not being true to its values just to gain traction. Avoid doing so at all cost and merely stay true to your values and play to your strengths.

  2. Encourage customer feedback:

    Everyone wants to speak but no one wants to listen. To create a strong brand image, it is crucial to make your customers feel heard. Establish proper channels and encourage honest feedback from customers. This can go a long way in building brand loyalty.

  3. Retain your customers:

    It is much more expensive to gain new customers than to retain the existing ones. Make sure each interaction that a customer has with your business is pleasant and convenient. Providing the customers with a hassle-free and stress-free buying experience is one of the best ways to retain customers, and thus helps in converting them into loyal customers.

  4. Case Study: Coca-Cola

    Coca-Cola is one of the most popular soft drinks in the world and has been for many years. The company has built up strong brand loyalty among its customers, who often choose Coca-Cola over other brands of soft drinks.

There are a number of reasons why Coca-Cola has been so successful in building brand loyalty

  1. Firstly, the company has a long history – it was founded in 1886 – and so it has had plenty of time to build up a strong reputation. 
  2. Secondly, Coca-Cola is available in many different countries, so people from all over the world can easily buy it.
  3. Thirdly, the company uses effective marketing campaigns to remind people about its product and make them feel good about drinking it.
  4. One of Coca-Cola’s most famous marketing campaigns is the “Share a Coke” campaign, which was launched in 2014. This campaign encouraged people to share bottles of Coca-Cola with their friends, family and loved ones. The campaign was very successful and helped to increase sales of Coca-Cola by 3% globally.
  5. Another reason for Coca-Cola’s success is that it offers a wide range of different products. Along with the original soft drink, currently they offer more than 500 different types of Coca-Cola, including Diet Coke, Coke Zero and Cherry Coke. This means that there is something for everyone, and people can find a type of Coca-Cola that best suits their taste.

How to Measure Brand Loyalty?

There are a few ways to measure brand loyalty.

  • The most common method is to track customer retention rates. This can be done by looking at the percentage of customers who continue to purchase your products or services over a certain period of time.
  • Other ways to measure brand loyalty include customer satisfaction surveys and Net Promoter Scores (NPS).

How Can a Professional Certificate Programme in Advanced Management From IIM Kozhikode Help You Build Your Career in Management Domain?

  • The Professional Certificate Programme in Advanced Management from IIM Kozhikode is designed for experienced professionals who are looking to advance their careers in management and marketing. 
  • The program offers modules such as Consumer Behaviour, Branding and Brand Positioning, Brand Loyalty, and Product Life Cycle that are tailored to equip professionals with the knowledge and skills needed to take on challenging roles in the corporate world.
  • This programme in advanced management from IIM Kozhikode also offers a unique opportunity to learn everything you need to know about helping a brand build its unique identity, thus earning brand loyalty from customers.


Brand loyalty is an important factor in business success and increased profits. Companies must understand how to recognize, reward, and build customer loyalty.

By offering incentives such as discounts, rewards programs, personalized customer service, consistent product quality, and timely communications with their customers’,  companies can build a strong base of loyal followers. 

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