At Imonic, we view loyalty as the maximisation of value, rather than simply 'retention or loss'. Success factors and measures are therefore concerned with development, growth and optimum delivery of value to customers.
Value is defined as the measure of improved and increased use of goods and/or services in the supplier/customer relationship (Barnet, A. and Banamy, J. 1988). This suggests that achieving loyalty has to be a multi-dimensional approach, not merely concerned with the customer's presence or otherwise within the customer base, but instead focusing on 'share of wallet', repeat purchasing trends and long term partnership allegiance.
There is a significant body of research on customer loyalty. Most is interesting, but either too specific to a given situation (or point in history) to be able to apply today, or not convertible to practitioner tools and methodologies for application.
Imonic have synthesised some of this research and matched it with our own industrial research and practical experience to segment key reasons for 'customer loyalty' and 'customer disloyalty'. Our findings are listed below.
Why are customers loyal?
We have also discovered some fundamental causes for customer disloyalty:
When are customers disloyal?
As you can see, it's quite possible to assess your customer management strategy against these critical success factors, and as a result strengthen the loyalty of your most valued customers. Pleas refer also to migration and retention, customer satisfaction, customer satisfaction surveys, customer behaviour.