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6 Types of Customer Loyalty

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Customer loyalty is when a customer consistently purchases from a business. This is typically based on the customer's needs, preferences and experiences with the business. The following are common types of customer loyalty.


Consistently purchasing the same product. This can be due to the features or quality of the product. For example, a customer may try several shampoos until they find one that they prefer. Once a preference is established it may continue for years. Calculating customer loyalty for products requires extensive market data and is often based on representative samples. For example, a firm might define a loyal customer as someone who purchases the product at least once a month for six consecutive months.


Subscription based services often benefit from loyal customers that represent monthly recurring revenue streams. Calculating loyal customers is easy for subscription based services as ample data is typically available. Six consecutive months is a common threshold. Restaurants and other non-subscription services typically base customer loyalty on purchase frequency such as once a month or six times a year.


Brand loyalty may result from reputation, customer experience or a customer who identifies with the brand. Customers may be loyal to all the products offered by a brand or some subset.


A customer may be loyal to a particular location simply because it's convenient. For example, a customer may be loyal to a restaurant chain because it's close to their office. If the convenient location closes, the customer may be unlikely to seek the chain out elsewhere. Likewise, brand or product loyalty may end if products aren't available where the customer shops.


A customer may be in the habit of consistently purchasing the same product or service based on price alone. For example, a customer may always purchase the same brand of coffee because its always the cheapest on the shelves. Such a customer will immediately switch if prices go up and may be indifferent to efforts to improve product quality.


A customer may be loyal to a person such as a salesperson but not the underlying products, services or brand. Often a top salesperson who leaves a firm is able to attract their former customers to their new firm's products.
Overview: Customer Loyalty
A customer who consistently purchases the same product, service or brand.
Related Concepts

Customer Experience

This is the complete list of articles we have written about customer experience.
Bliss Point
Brand Awareness
Choice Architecture
Critical To Customer
Brand Legacy
Customer Advocacy
Brand Loyalty
Customer Interactions
Customer Issues
Customer Journey
Cost Of Poor Quality
Customer Motivation
Customer Perceptions
Curiosity Drive
Customer Success
Customer Wants
Customer Convenience
Customer Expectations
Design To The Edges
Customer Is Always Right
Engagement Data
Experience Age
Experience Economy
Journey Map
Experience Goods
Lifetime Value
Feature Fatigue
Customer Marketing
High Touch
Lead Users
Customer Preferences
Customer Relationships
Customer Satisfaction
Moment Of Truth
Customer Service
Nudge Theory
Service Principles
Peak Experiences
Customer Value
Service Experience
Service Quality
Experience Quality
Experience Sampling
User Intent
Fit For Purpose
Internal Branding
Perceived Value
Product Design
Product Differentiation
Types Of Quality
More ...
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