{"id":37083,"date":"2021-11-04T05:41:56","date_gmt":"2021-11-04T05:41:56","guid":{"rendered":"https:\/\/inmoment.com\/xi-terms\/customer-loyalty\/"},"modified":"2023-11-14T09:59:57","modified_gmt":"2023-11-14T16:59:57","slug":"customer-loyalty","status":"publish","type":"glossary-terms","link":"https:\/\/inmoment.com\/en-gb\/xi-terms\/customer-loyalty\/","title":{"rendered":"Customer Loyalty"},"content":{"rendered":"

Customer loyalty is believing that an organisation\u2019s product is the best option. It\u2019s more than a casual friendship. Loyalty means sticking around when it isn\u2019t easy, rejecting competition and believing that the customer-company relationship transcends products and services.<\/p>\n

Most people aren\u2019t 100% loyal to one brand. One may shop from three grocery stores, loyal to them all, and none others, but not loyal to one completely. This has been termed polygamous loyalty. Due to split loyalties, it is in the best interest of companies to invest in customer loyalty and be the one that holds the most wallet share. Loyal customers can keep sales coming, even in economic downturns, they can purchase supplementary products\/services, bring in new customers and reduce costs for consumer marketing.<\/p>\n

Loyalty can also come in two different types, behavioural and attitudinal. Behaviour loyalty refers to those who buy the company\u2019s products and tell their friends about them. Whereas attitudinal loyalty refers to the positive emotions that people have towards a company or its products.<\/p>\n

Customer loyalty can be confused with similar terms such as brand advocacy, loyalty programs, and customer satisfaction<\/a>. Brand advocates believe in what the company stands for, regardless of products\/services. Not all brand advocates are loyal customers. The inverse is also true. Not all loyal customers are brand advocates. Loyalty programs don\u2019t often affect loyalty. Usually they are executed improperly and result in the equivalent of discounted rates rather than customer that stay. Customer satisfaction is also a small indicator of loyalty. While it plays a part in it, loyalty is more than just a good experience.<\/p>\n

What Is Employee Loyalty?<\/h3>\n

In order to build good customer loyalty, employee loyalty needs to come first. Making sure employees are engaged and happy at work is vital. As the saying goes, \u201cThe fish stinks from the head down.\u201d Employees are the ones that pass loyalty down to the customers. It\u2019s important that employees are invested in the values of the company and are trained in order to produce the most loyal customers. Evaluating the connection employees have with the company can be done through using a Voice of the Employee (VoE) program<\/a>.<\/p>\n

How Do You Create Loyal Customers?<\/h3>\n

Research shows that 73% of a customer\u2019s love for a brand comes from great service and more than 70% of buying experience comes from how the customer feels they are being treated. It\u2019s no secret that obtaining the loyalty of customers is a strategic imperative. While there are a myriad of tips and tricks to acquiring and holding on to customers, what it essentially boils down to is trust. Customer loyalty can be analogous to a marriage. Like any good marriage, it requires lots of trust, work, and communication. Below are a few guidelines to employ when interacting with customers.<\/p>\n

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  1. Analyse what is and isn\u2019t working. Improve what isn\u2019t<\/li>\n
  2. Exceed customers\u2019 expectations<\/li>\n
  3. Establish a personal relationship with every customer<\/li>\n
  4. Follow the rules: Golden Rule (do unto others as you would want to be done unto.) and the Platinum rule (interact with others as they want to be interacted with.)<\/li>\n
  5. Share your values<\/li>\n
  6. Be Transparent<\/li>\n
  7. Admit when you make a mistake. Take responsibility and resolve issues<\/li>\n
  8. Ask for their feedback<\/li>\n
  9. Take action on feedback<\/li>\n
  10. Earn a reputation for being consistent and reliable<\/li>\n
  11. Be flexible<\/li>\n
  12. Surprise them<\/li>\n<\/ol>\n

    There is no shortcut to earning customers that trust a company. Loyalty is built on trust and there are three must haves for building customer trust and loyalty<\/a>. A company has to be worthy of that trust\u2014by building positive, genuine relationships and experiences with customers.<\/p>\n\n

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    \n WHITE PAPER <\/h5>\n \n

    \n The Top 9 Ways to Increase Customer Loyalty <\/h4>\n \n
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    Fostering true loyalty and engagement with customers starts at a basic level. \u00a0These nine principles will guide you in your efforts to create greater loyalty and engagement within your organisation. \u00a0Creating loyalty is one of the most critical ways to retain more of your customers and grow your business faster. \u00a0It can also be a powerful competitive edge.<\/p>\n<\/p>\n <\/div>\n \n \n \n Download <\/span>\n <\/a>\n \n <\/div>\n\n <\/div>\n\n <\/div>\n<\/div>\n\n<\/section>\n\n\n

    How Do You Measure Customer Loyalty?<\/h3>\n

    There are many ways to measure customer loyalty. From using the Net Promoter Score (NPS)<\/a> and Customer Effort Score (CES)<\/a> to analysing customer retention and negative churn. Here are few other ways to that loyalty can be discerned:<\/p>\n