Why should I matter about Brand Loyalty?

Brand loyalty is very important, because increases the brand value, and by doing so allows to set higher prices.

Imagine a market without brands, there you will find a market where the competition is only made by setting smaller prices, and by that the risk of destroying market value is high.

Pricing is the most sensible item in marketing, because projects your image and positioning, defines your profit margins and in the end defines the company sustainability.

So, why brand loyalty is so important to pricing? Increasing brand value by acknowledgment, image associations, attractiveness and brand loyalty, will permit to set higher prices, therefore higher margins and in the end, higher profits.

Besides that, is common knowledge that in almost all industries is cheaper to increase sales through actual customers, than invest to reach new customers.