Brand Loyalty

Playdia, Casio Loopy, and  Amiga CD32  are the names of video game consoles. These game consoles might not be familiar because: Nintendo, PlayStation, and XBox–through great understanding of  brand loyalty–have ensconced themselves into the laypersons’ lexicon.

The goal of any product or service is to develop brand loyalty. Brand loyalty starts with a firm understanding of the product or service you wish to deliver, and then juxtaposing them with the competition.  This first step requires a company to take a honest introspective look at themselves. Once a company has taken this introspective look at their services, by way of an audit, they can start the nascent stages of developing brand loyalty.

Business strategist such as Fred Reichheld claim that by enhancing customer loyalty a company could see dramatic effects on profitability. Among the benefits from brand loyalty — specifically, longer tenure or staying as a customer for longer — was said to be lower sensitivity to price. This claim had not been empirically tested until recently.

Successful companies understand that, brand loyalty is built on customers’ perception of a product or services’ value,  level of trust, worthyness, and their level of satisfaction. All these elements  play an integral role in developing brand loyalty. A large part of the success Nintendo, PlayStation and Xbox have enjoyed is due in part to their understanding of formentoned elements.