Consumer Behaviour
Business: BTEC Level 3 National Extended Diploma, topic 2.1.5
Consumer Behaviour
Businesses try to gain customer loyalty because customers will buy products again and again. This secures a steady stream of revenue, leading to profits.
Customer service
- Customer loyalty is built upon a business providing exceptional service.
- Customers are willing to return to a business if they know they receive personalised and effective service.
- Strong customer service also relies on a business responding to feedback.
A strong brand
- Customer loyalty is built when a brand has a strong identity and is easily recognisable.
- When someone says Visa or Mastercard, Mercedes or Skoda, and FIFA vs Pro Evolution Soccer, your reaction to these is an indicator of which brand is more powerful for you.
Loyalty schemes
- Customers are more likely to return to a business if they are incentivised to with loyalty schemes.
- For example, a coffee shop offering every 10th coffee for free.
Behaviour insight
- A business can build up loyalty if they thoroughly understand the behaviour of their customers.
- This means that they can tailor themselves to exactly what customers want.
- This insight can be gained from analysing data.
Test yourself on Consumer Behaviour
What can help customer service improve?
Which of the following will help build customer loyalty?