The subject of Customer Loyalty (and
in particular the different types of loyalty) is my own personal specialist subject.
In fact I wrote my 30,000 word Masters Degree thesis on this very subject.
Unfortunately, many business-people
don’t realise that there are different types of customer ‘loyalty’, and this
often results in them adopting customer retention strategies that are only
based around pricing. This is often referred to by business academics as ‘behavioural
loyalty’ (or ‘habitual loyalty’). A far better long-term strategy is to create ‘attitudinal
loyalty’ (sometimes also called ‘emotional loyalty’). This is where a customer
feels a sense of empathy (and even ‘love’) for your brand, your company, and
your products. The customer is then less likely to be swayed by changes in
price, or other external factors that you have no control over.
The article below was written by
Nicholas Zeisler, a Customer Experience (CX) expert based in Colorado, USA. In
the article, he develops this theme, and looks at the importance of delivering what your customers
want, in order to ensure loyalty to your brand. You can find contact details for
Nicholas and his company at the end of the article.
Darren Bugg
Editor, The Customer Service Blog
.............................................
Is it loyalty?
I’ve been with a certain service provider
for about 20 years now. It’s definitely the longest I’ve ever been with any
brand that I can think of off the top of my head. Sometimes you stay because
it’s the only game in town (you can likely consider your cable company for this
example). Sometimes you stay out of a sense of laziness (are you a Coke person
or a Pepsi person?). But I’m not sure if I’d say that I’m staying with them out
of ‘loyalty’.
It’s kind of a weird thing to think
about: loyalty to a brand.
Don’t get me wrong, I have my favourite
brand of vodka (I have two, in fact - one for mixing, and one for martinis), my
go-to coffee, and we have an excellent Indian restaurant in our neighbourhood
where they know us by name. But when I think about things like my airline (I
use the one hubbed in Denver, of course), or the brand of car we drive (sure,
it’s good, but when we are in the market for a new one, history is only part of
the decision-making process), there’s certainly nothing emotional when it comes
to what those brands may consider our ‘loyalty’.
When brands think that customers are
loyal to them, I think they’re kind of kidding themselves - especially when
they’re trying to do things like make ease-of-use or low-pricing their calling
cards. After all, if you’re chasing a segment of the market that’s most
interested in saving money when purchasing your goods or services, what do you
think is going to happen if someone (anyone!) comes along and underbids you?
When your goal is transactional like that, that people choose you is more
utilitarian than some sign that they have any affinity for you.
Don’t get me wrong, I’m grateful that
there are brands of gas or paper towels or thumb-drives that strive to be the
least-cost competitor. And when I need that lowest cost on a commoditised item like
that, I’m all about them. If they’re constantly least priced, I’ll even
continue to go there, even if somehow someone else comes along and
surreptitiously costs less (until, of course, I’m made aware of it). So there’s
definitely incentive (and it makes sense) to keep those costs down if that’s
the Brand Promise you’re trying to fill. But don’t sell yourself on that.
When I think of being loyal, I think
of my partner, my dog, my family, and friends. Loyalty, in these instances,
means that, despite their (or my!) flaws and quirks, we still love each other
and are there for one another. That simply doesn’t translate to the business
world. You may love your favourite sports team, and don’t get me started on politics
(and the ridiculous things some people do out of tribalism and/or obsession
over totems and politicians themselves). But if that cell-phone provider keeps
dropping your calls but has the temerity to tout its reliability, you have
reason to simply bail no matter how much they mean to you nor how long you’ve
been with them. On the other hand, of course, if you’re only with them because
they’re the lowest-cost provider, your priorities (and mileage) may vary.
But back to my loved ones: Loyalty in
those relationships actually means the opposite of what I think happens in the
business world. Loyalty to your friends and family means that you stick with
them sometimes in spite of their failures (again, just ask my partner!). Nobody’s perfect, so a lot of times we stick
with those who are close to us, acknowledging their shortcomings and even
failures along the way. And sure, maybe if the brand we usually use fails us
from time to time, we can let that slide - especially if they recover well.
But usually, you’re with (and stick
with) a brand because they satisfy what, in particular, you’re looking for when
it comes to the product or service they provide. Whether that’s lower cost or a luxury
experience, or high quality or ease-of-use, if you’re thinking about any
difference in brands at all, it’s because someone’s met that need you have. Once
or twice they fall down on that, and you may let it slide if you’ve been with
them a while. But if it becomes clear they’re not living up to their Brand
Promise, you’ll find someone else who does. Likewise, even if they are doing
well enough, it’d be easy to lure you to another brand if they did it better.
So, this service provider has been letting me down in a few ways lately - cost, ease-of-use, compatibility with what I need. I don’t hate them, and am not getting near that. But I don’t love them either. The things I do like about them are still there and valid. But I’m not loyal to them in the sense that I’d never look for someone else to come through for me in the ways that I need that they’re not meeting. They may look at my long history with them and misinterpret my satisfaction (which is real, although waning sometimes) for loyalty. They may think they’ve got me, but it’s not true. They still have to deliver.
Nicholas Zeisler
Zeisler Consulting
For more details about Zeisler
Consulting click here
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