what is customer loyalty?

Question

i need quotes and references for my coursework. i just need a definition of "customer loyalty", preferabily from the internet.

Answer 1

(m)

The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.

Answer 2

http://www.thewisemarketer.com/features/read.asp?id=13

critique of a Harvard Business Review Article...

"What is Loyalty?
There is no universally accepted definition of loyalty and, therefore, who loyal customers are. Some claim we should measure customer loyalty by their share of wallet; others say it should be based on the customer retention rate; others push frequency as the best measure, while others claim it's the customers' attitude towards the company that best describes loyalty.

Understanding which definition is used in The Mismanagement of Customer Loyalty is crucial because if a reader's understanding of a loyalty programme is materially different from that used by Reinartz and Kumar, the article's arguments and conclusions may have no relevance to how the reader practices loyalty marketing. This is certainly true in my case. I don't accept their "customers who purchase steadily from a company over time" (with no other qualifiers) as a good definition. In fact, I don't know any expert or practitioner who does.

One of the challenges practitioners have had is to find a definition that is easy to understand and easy to measure. Otherwise it's just a theoretical abstract. Over the past decade my retail clients have evolved, now considering their loyalty programmes as sources of data to help accomplish their corporate goals.

To achieve this, identifiable customers are sorted into one of five classes: Diamonds, Rubies, Opals, Pearls or New. This method of classification is described using the acronym DROP'N. Among food retailers, the quarterly breakpoints most often used are 1300, 650, and 325 US Dollars (or Euros, depending on whether it's a European or American retailer). In other words, a Diamond's average weekly spend in a quarter is over 100, a Ruby's is from 50 to 100, an Opal's is from 25 to 50, and a Pearl's is under 25 (all in either US$ or Euros). New customers are those who, during the quarter, have bought for the first time. The goal of these retailers is to increase the number of its 'Best Customers', comprising the two top categories (Diamonds and Rubies). The reasoning is simple: As a general rule, retailers have found that Best Customers have:
· The lowest defection rates
· The lowest processing costs
· The highest gross profit yields

The authors state that they did not find these correlations in the French food retailer (and the three non-retailers). That, I suggest, is because of their definition of loyalty. Spending levels in a shopping cycle - quarterly, for example - is a more practical measure. Is a farmer who shops infrequently but spends heavily on each visit less loyal that someone who shops frequently but spends a small amount each visit? Surely, it's the end result - spending - that counts from a business viewpoint.

The authors defined loyalty as 'frequency'. It follows that their best customers must be those who buy most frequently. Unfortunately this includes a number of low-spending customers whose spending characteristics and economics can be quite different from the frequent, high-spending customers (the Diamonds and Rubies)."

Answer 3

It is when the customer is brand loyal or loyal to a certain store, etc. They don't buy anyother product and look for that certain brand because of experience, quality, etc.

Answer 4

Customer loyality is nothing but a repetitive shopper at a single location.

Answer 5

Hi follow this link its from a journal article so its a reputable source

http://jam.sagepub.com/cgi/content/abstract/22/2/99

Answer 6

Something that can be changed by a better offer!