Loyalty Essay Example | Topics and Well Written Essays - 1250 words

Loyalty - Essay Example Marketing has become one of the most important disciplines in business administration. The level of success an organization achieves depends on its ability to satisfy the needs of the customers by providing products and service they seek at reasonable prices that add value. A strategy that many multinational corporations have pursued for many create a brand image that will help companies achieve customer loyalty. Customer loyalty can be defined as a deeply held commitment to re-buy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior (Kotler, 2002, p.294). This paper examines the concept of loyalty in order to evaluate the statement there is no such thing as customer loyalty anymore. Customer loyalty is key business strategy utilized to increase the levels of customer retention within a firm. A high customer retention rate adds value to a company because these customers represent future stream of revenues that the company can achieve with minimal marketing investment. There is a basic marketing rule that states that 80% of a company’s sales come from 20% of their customers (About, 2009). This implies that building a solid foundation of customer is extremely important for the long term success of a company. The stronger the sense of loyalty a customer feels towards the product of a company, the less likely this individual will purchase the goods or services from a competitor. A marketing quantitative analysis performed by Hughes (2009) of Fast Lube Corporation revealed that the longer a customer is retained the more the person spends annually with the company. One of the basis reasons marketing exist is to help a firm increase its sales totals. The sales of a company increase if the company is able to growth its customer base or if the