How Loyalty Research Can Actually Boost Your Business Results
Loyal customers are ideal for all businesses. They are more likely to buy more than one product, make positive reviews, recommend us to others, and be more willing to pay a higher price for our products.
But how do we identify our loyal customers? And, what can we do to make more of our customers loyal to us? There are a variety of market research methodologies that attempt to understand important factors relating to customer behavior.
That’s where customer loyalty research comes in.
Loyalty research is collecting data and feedback about our customers’ attitudes, perceptions, and behaviors towards our brand. This information can help us to identify what loyalty looks like for our customers and how we can increase loyalty among them.
What is Customer Loyalty?
Customer loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future. This commitment results in repetitive same-brand purchasing behavior. It is about both attitude and behavior.
We can view loyalty in terms of the brand. People are often loyal to a brand because they associate it with a positive experience, such as excellent customer service or consistently high product quality.
It’s about many positive interactions which build trust. This doesn’t mean every interaction must be flawless. Although customer loyalty can handle a few negatives, it provides a strong-enough relationship with the brand to overcome a few bumps in the road.
Customers won’t necessarily lose their loyalty to a brand if they have an unpleasant experience. It’s all about how the business deals with the issue.
Customer loyalty is powerful because it involves trust.
Share of Wallet
When measuring loyalty, it’s important to determine if it really means anything or if it will benefit the business. When you consider financial performance, customer loyalty is all about “share of wallet.” While…