| Introduction: Customer loyalty can be defined as a | | | | plays an important role. |
| behavior or attitude of a customer to purchase a | | | | Now the question arises how to retain |
| particular product of a specific brand over others | | | | customers? Customer retention can be achieved |
| which available in the market for a particular need. | | | | by loyalty schemes and programmes all these |
| The packaged good industry defines this | | | | activities involve developing strong customer |
| consumer attitude as 'Brand Loyalty'. Brand loyalty | | | | relation, greater attention to details and customer |
| can be defined as "The degree to which a | | | | expectations. All customer retention programmes |
| customer is loyal to a given brand in that they are | | | | should focus a particular customer base. It has |
| likely to re-purchase/re-use in the future. The | | | | been argued that loyalty schemes take time to |
| level of loyalty indicates the degree to which a | | | | produce immediate benefits for customers hence |
| brand is protected form competitors" (Yellow | | | | many customers move out these schemes very |
| Pencil). | | | | quickly. "Formal loyalty programmes can be |
| Customer loyalty has become the buzz word of | | | | challenging to implement and may not be an |
| the marketing industry (Papers4you.com, 2006). | | | | optimal way to achieve retention and profitability |
| Companies are constantly trying to increase their | | | | goals but when they are done right loyalty |
| brand awareness by promoting loyalty schemes, | | | | programmes can help converting more prospects |
| making more and more people buy their products. | | | | into buyers" (Shari Altman). |
| Regular maintenance of customer database | | | | Customer loyalty plays a very essential role in the |
| containing customer, sales data and other | | | | performance of a company (Papers4you.com, |
| statistical data is a good technique to measure | | | | 2006). By retaining existing customers and |
| customer loyalty. By constantly analyzing this data | | | | expanding customer base companies create a |
| companies can increase their customer loyalty. | | | | brand equity which is positive. Though we say |
| Brand Equity: In general brand equity is the value | | | | that customer loyalty is an important factor in |
| a customer places on brand. If the brand is | | | | today's competitive market but what is more |
| trusted the equity will be positive but if the brand | | | | important is to manage and maintain loyalty. |
| has a bad reputation the equity will be negative. | | | | Loyalty schemes should be highly focused and |
| The Marketing Science Institute (MSI) states that | | | | should build on strong customer relationship in |
| brand equity can be viewed by customers "...as | | | | order to achieve 100% customer satisfaction. |
| both a financial asset and as a set of favorable | | | | References |
| associations and behaviors" (MSI 1989). While | | | | Altman, S. (2005) Loyal Subjects, Multichannel |
| Farquhar (1989) contends that brand equity to a | | | | Merchant, Vol. 1 Issue 6, p34-35, 2p. |
| consumer follows from a positive evaluation of, or | | | | Brand Equity , Yellow Pencil . Accessed on 21st |
| attitude toward, the branded product, Keller | | | | June 2006 [ |
| (1993) hypothesizes that consumer-based brand | | | | Farquhar, Peter (1989), "Managing Brand Equity," |
| equity arises from a more favorable differential | | | | Marketing Research, pp24-33. |
| response to the firm's marketing efforts. Concept | | | | Horowitz, S. A., (2006) Top 5 Ways to Retain |
| of brand equity is associated with the financial and | | | | Your Clients. . Accessed on 20th June 2006 [ |
| accounting perspective like estimating the value of | | | | Indiana University. Accessed on 21st June 2006 [ |
| a brand also this concept is studied while working | | | | Keller, K ,L. (1993), "Conceptualizing, Measuring, and |
| on strategic marketing activities. | | | | Managing Customer-Based Brand Equity," Journal |
| Customer Satisfaction & Retention: It is | | | | of Marketing Vol57, pp1-22. |
| difficult to achieve a sustainable competitive | | | | Marketing Science Institute (1989), "Review,, In |
| advantage in n today's world of fierce competition | | | | Defining and Applying The Brand Equity Concept: |
| where every company is trying to prove their | | | | Why |
| product better than the others. Providing excellent | | | | Papers For You (2006) "E/M/46. Dissertation. |
| customer service and retaining existing customers | | | | Research customer loyalty in services industry", |
| can help companies to achieve competitive edge | | | | Available from [22/06/2006] |
| over others in the market place. It's been | | | | Papers For You (2006) "P/M/443. Marketing value |
| estimated that the cost to land a new account is | | | | of consumer loyalty", Available from [21/06/2006] |
| as much as six times the cost to retain an | | | | Schultz, Don E.; Bailey, Scott.(2000) Customer |
| existing one. (Alan S. Horowitz).A minor increase in | | | | Brand Loyalty in an Interactive Marketplace. |
| the customer number can create a big impact on | | | | Journal of Advertising Research, Vol. 40 Issue 3, |
| the total profits that is why customer retention | | | | p41, 12p. |