LinkedIn can be an excellent platform not only for networking, but also for holding meaningful discussions with others in your line of work. A member of the Customer Experience Management LinkedIn Group posed this discussion question to her fellow CRM-minded members:
How are we actually defining customer loyalty?Is it merely feet through the door? Or does true loyalty mean creating a deep and meaningful connection with the brand? Does it go beyond just repurchase?
What a great question! So often we talk about how to foster strong customer experiences and what that can mean for your company, but we forget that customer experience and customer loyalty are not necessarily concrete ideas. Numerous Customer Experience Management group members have weighed in to provide their own opinion on what customer loyalty means to them as both a consumer and a retailer. Here are some highlights:
- Loyalty is NOT the same thing as simple repurchasing. Consumers often feel obligated to purchase from certain brands or stores due to availability, convenience, or contracts. I use my particular cable provider because they're the only option available in my area; I frequent a particular grocery store because it's on my way home from work; and I don't switch cell phone companies because I'm locked into my contract for another year. I wouldn't describe myself as being loyal to any one of these companies.
- Loyalty can be defined through recommendations. A company a customer would recommend to a friend is one to which they are loyal. Additionally, some people like the feeling of "belonging" to a certain group of consumers - Apple is seen as an innovative, trendy organization, and many people are loyal to them because they want to be seen as a member of that particular group.
- Loyal customers may be less sensitive to price because they recognize and appreciate the added value your business provides.
- Loyal customers are those who, when given a range of options with no change penalty (monetary or otherwise), would still choose your product.
- Two words that kept popping up in the discussion were "trust" and "relationship". Being loyal to a company means that they have given you a reason to trust them and their products, and that there is some sort of meaningful relationship between consumer and retailer.
- There may be different levels of loyalty. The most loyal customer may be willing to stick with your brand no matter what, while someone who is lower on the loyalty scale will be willing to stick around for a certain amount of time before exploring better options.
- Meeting (and exceeding) customer needs and expectations, including those that the customer may not be aware of, are key to building loyalty.
What do you consider to be the definition of customer loyalty? And what does that loyalty mean for your company quantifiably?
Learn how Cvent can help you manage both the highly effective customer feedback, as well as measure the customer loyalty using its Client Satisfaction Survey Software.