Answer to Question #224685 in Management for Lucy

Question

 Explain the concept of brand loyalty and Woolworths approach to increasing brand loyalty

Answer 1

Brand loyalty is the positive association consumers attach to a particular product or brand. Customers who exhibit brand loyalty are devoted to a product or service, which is demonstrated by their repeat purchases despite competitors' efforts to lure them away.

The Woolworths approach to brand loyalty is focused on three key principles; firstly, offer: which aims at improving the core offer to ensure that customers put Woolworths first. The second approach is growth which involves innovating to meet more of these customers' needs; and lastly is maintaining efficiency by creating further customer value by organizing for success and executing the Lean Retail model.

Evidence is demonstrated when Woolworths announced the relaunch of their loyalty program and its transformation from the points-based “Everyday Rewards” scheme to a new cashback scheme called “Woolworths Rewards”.

Woolworth ensures brand loyalty by; delivering on the promise, it links customer actions and puts the customer at the heart of their business.