The Loyalty Paradox

Schultz, Don E.
September 2005
Marketing Management;Sep/Oct2005, Vol. 14 Issue 5, p10
This article discusses the author's perspective on brand loyalty. Marketing organizations, academics and chief marketing officers all study and seek brand loyaly, but what causes brand loyalty is little understood. Loyalty is key to driving top-line growth because it costs less to sell and service loyal customers and they also bring in new customers. Some of the most common reasons given for brand loyalty are customer satisfaction and the customer's desire to identify themselves with a group. Lack of brand loyalty could be caused by a number of reasons, but the author suggests it is the result of a lack of loyalty by the marketers to the customers. Marketers fail current customers in many ways, including offering new customers better deals and discontinuing or repositioning the brand. For brand loyalty to be established the customer must be loyal to the brand and the brand must be loyal to the customer.


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