▪A measures of customer’s likeliness to do repeat business with a company or a brand
▪It is a result of good offers, customer satisfaction, positive customer experience and overall values of the
goods or services that a customer receives from a business
▪The customers are willing to pay more as long as they get the same quality/experience from the
company/brand.
Defined as “a deeply held commitment to rebuy or re–patronize a preferred product or service in the future
despite situational influences and marketing efforts having the potential to cause switching behaviour.”
▪Customer loyalty in the automobile industry or similar kind of industry, the product of which is not
consumed regularly but on an extended period is very uncertain.
▪Nevertheless, we can still find existence of various automotive brands over the period which have been
performing well. For example, Audi has been constantly known as established brand from years. Hence,
this has been a result of its value creation over the years. Audi has a good branding, through affective
advertisements, sponsoring the football club which has helped in creating a distinct image of its product
in mind of customers and create a high value of its offering.
▪Looking at this, the investment in customer loyalty in the automotive industry is important to maintain the
existence and value of the product/brand.
▪To gain customer loyalty we need to gain satisfaction, service , quality and a good feedback from
customer.
▪An achieved customer loyalty brings us:
❑Increase in profit – Pareto Principle where 80%of the company’s sale comes from 20%of its
loyal customer.
❑Reduce cost – Retaining an existing customer is cheaper than acquiring a new customer.
❑Repeat Business – They will buy again and again. They are also willing to pay more and hence
this creates a stability cash flow for business.
❑Greater Volume – An increase in customer retention can boost your bottom-line profit by 25%to
