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Chapter 5 Developing Customer Loyalty - Coggle Diagram
Chapter 5 Developing Customer Loyalty
Definition of loyalty.
The condition of being closely related to another by affection or faith
Definition of customer loyalty
Driven by overall satisfaction
Combination of attitudes &
behavior
Repeat buying
Willingness to recommend the
company to others
A commitment to the company demonstrated by a resistance to switch to a competitor
Types of customer's loyalty
Convenience Loyalty
Loyalty that defined by location of the business
Emotional Loyalty
It is based on emotions and relationships, rather than purely the transactional records
Incentivized Loyalty
Where loyalty relates to the benefits gained from reward cards and programmes
Price Loyalty
Consumers constantly evaluate alternatives and are loyal to the retailer with the lowest available price
Inertia Loyalty
Occurs when a customer has a high repeat of purchase but has no emotional attachment to the company.
Monopoly Loyalty
Where there are no
available choices.
Characteristics of loyal customers
• Customer who always give and take with our company.
• Spread the positive information about our company
• Customer that is hard to tackle and attract in order to get their interest and willingness to buy and satisfied with our product and services.
• A customer who don’t care or worried to spend their money
Strategies to develop trust
• Communicate effectively and convincingly.
• Display caring.
• Be fair.
• Admit errors or lack of knowledge
• Trust your customers.
• Keep your word.
• Provide peace of mind (calmness).
Loyalty program.
structured marketing efforts that reward, and therefore encourage, loyal buying behavior which is potentially of benefit to the firm.
Loyalty card
a plastic or paper card, visually similar to a credit card or debit card, that identifies the card holder as a member in a loyalty program
Loyalty program management
defined as the strategy, tools, and tactics around how your company acquires, engages, and retains customers
Provider characteristics affecting customer
loyalty.
Responsiveness
Adaptability
Communication skills
Decisiveness
Enthusiasm
Ethical behavior
Initiative
Knowledge
Customer Service
Five dimensions of trust.
Personal experience
Organizational knowledge (of the company)
Reference (what one learns about a company from others)
Glitz (advertising, packaging and high pricing)
Deference (respect or courteous expression)