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Customer Loyalty Program in Service Industry

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Brands that consumers generally buy from the same manufacturer repeatedly over time rather than buying from multiple suppliers within the category. It also refers to the degree to which a consumer consistently purchases the same brand within a product class. Traditional marketing concepts have always given stress on the importance of brand loyalty; and marketers have always believed that the customer relationship has come from the brand loyalty, and that help them to make the best use of customer lifetime value. Academic literature has several articles on some of these latest concepts like brand loyalty, how it is being used in the service industry or their effect on company’s sales etc., these articles basically suggest certain cautious ways of applying these concepts. Marketers are supposed to have deep knowledge about the concepts of loyalty to understand consumers' buying patterns before they are opting for loyalty schemes. Traditional approaches to brand loyalty have stressed the importance of the fact because of its cost effectiveness and it said that due to less expensive to maintain existing consumers than to get new ones. Consumers who are loyal to a particular brand are going to spend more on it and also will help in positive word of mouth to other consumers, and thus becoming advocates of the brand.