Insights

What is Brand Loyalty?

The degree to which consumers consistently prefer and choose one brand over its competitors. Loyal customers often advocate for the brand and resist switching even in the face of price incentives from competitors.

Positive Impact

Loyal customers not only repeat purchase but also act as brand ambassadors, bringing in new customers through advocacy.

Negative Impact

Without loyalty, brands may face higher customer acquisition costs and lower repeat purchases, affecting profitability.

Metric Tracking Method

Monitor metrics like customer retention rate, customer lifetime value (CLTV), and referral rates.