When firms successfully achieve Differentiation for their brand or brands, they have successfully achieved Positioning.
Unlike customer loyalty, which is money-based (prices and discounts), brand loyalty is perception-based (image and experience). Brand-loyal customers believe that a certain brand represents both higher quality and better service than any competitor—and the price does not matter.
Brand-loyal customers might make fewer total purchases, but the profit margins on their purchases are larger. Once established, brand loyalty is fairly easy to retain—assuming, of course, that product quality and service level remain high.
Brand loyalty is also less expensive to retain than customer loyalty, which requires constantly offering low prices and regular discounts to maintain best-deal-on-the-market status.
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