Which factors influence loyalty?

Despite of all your efforts and campaigns, there always will be a moment to say goodbye. In fact, when the customer tells you so. There are two different types of loyalty; attitudinal loyalty and behavioral loyalty.

 

Attitudinal loyalty

 

Attitudinal loyalty is determined by:

 

Relationship strength

Of course some customers are more committed to a company than others. This level of bonding is important, also from a loyalty point of view. The stronger a customer feels engaged to and appreciated by a company, the tighter the relationship will be and the lesser the chance of losing that customer.

For example: some people will always drive Mercedes (even if others consider the newer versions ugly). Some mercedes drivers simply love Mercedes.

 

Perceived alternatives

There are always alternatives, but are they really perceived as such? If the customer thinks that there is a limited choice of alternatives, he is less inclined to move away.

 

To stick to our car example: Mercedes had little competition in the 70's. It was considered a top of the line, high quality brand. However, Audi has over the last few years upgraded its brand while other car manufacturers have improved the quality of their cars up to the level of Mercedes.

 

Critical episodes

People and their needs change over time. There are always moments where these changes are being perceived more strongly and that is when the risk of losing the customer is higher. For example: if a company needs to downsize, the chances of that company to buy new furniture is limited. On the other hand, when they are grow strongly and need to relocate, the likelihood of them to order furniture is much higher. For a consumer it could be that he needs to relocate to another city. Children might be born or move out of the house (empty nesters) due to which the family’s buying behavior will change.

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