PriceA customer who views your product as a good value for its price such that they buy it enthusiastically. Such customers may defect if you raise prices or if they find a better value. competition. For example, a gym that determines that most of its loyal customers live in the neighborhood. quality as superior to the competition such as a customer who prefers a particular jam because it is mostly fruit, very low in sugar and is lacking negative ingredients. Customer needs such as a customer who needs an extremely fast internet connection that is only offered by one provider in their area.customer experience such as a customer who has had nothing but pleasant experiences with an airline such that they heavily prefer its flights.
RewardsCustomers who are working towards rewards such as free upgrades on flights such that they keep purchasing to earn points in a loyalty program. Such a customer may defect if they are disappointed by rewards or find more appealing rewards elsewhere.
RelationshipsRelationships such as a hairdresser with a long list of loyal customers due to his friendly demeanor and professional skills.
ParticipationCustomers who help to build your brand such that they feel part of it. For example, a tech enthusiast who has recommended you to everyone they know and often answers technical questions about your products.culture surrounding your products as opposed to your product itself. Culture is largely beyond your control and can change. For example, a restaurant in a business district that is viewed as a lively after work spot for a decade but eventually fades due to competition in the area.
Dissatisfied & StuckCustomers who dislike something about your customer experience but keep purchasing due to switching costs or effort. For example, a telecom customer who dislikes their provider but is locked into a contract with cancellation fees. Such a customer may generate both revenue and negative word of mouth.
NotesThe definition of loyal customer differs by industry. For fast moving consumer goods, a loyal customer may purchase an average of once a month for at least six months. Durable goods are sold on much longer cycles such that a purchase every 3 years may be considered loyal.
|Overview: Loyal Customers|
A customer who makes regular purchases from a firm for an extended period of time.
A customer who purchases once a month on average for six months or longer.