Question

Most successful businesses today actively develop loyal customers who buy their brands again and again. After all, getting current customers to buy more is much easier than constantly seeking new customers. In business, it’s called the 80/20 rule—80% of your business revenues come from the most loyal 20% of your customers.

Think of three brands that you buy on a regular basis. Why do you stick to these products? How could another company dislodge you? Discuss. [approximately 200 words]

Answer 1

Every individual has his or her own choice when it comes to any products. There are different factors that lure different customers to certain products. For some price might be the main concern whereas some others wouldnt really care about price but all about quality.

As a business owner, its important to know your target audience. To know what are the factors that matter to them mainly. Whether they care more about a competetive price or better quality. That will help to keep hold of those customers for a longer period of time.

Well, when it comes to shoes, i'd mostly Adidas. Thats because of the comfort of the shoe and at the same time they have great offers and sale every now and then. So when looking at price and quality together in a single frame, I see it as a really good option.

There are other companies who produce maybe similar or even better shoes, but if they can bring down their prices, then its a possibility that they could lure customers like me.

There are some people who prefer only a ceratin brand of clothing. That could be because of the quality they get. Its better to buy clothes which are a bit costly, if they will last for a long time rather than to buy cheap ones that get torn very easily.

So there are many such factors that a customer would look at before buying any product. Some are always loyal to the brands they buy, whereas some others dont really care about brand etc. They just look and take whatever they like.

Hope this answers your question. If you liked the answer, please give an up-vote. It would be highly encouraging for me. Thank You.