What is customer loyalty?

23 April 2019

What is customer loyalty?

There are many different definitions of customer loyalty. But the important thing is to determine what customer loyalty means for your business.

 

Customer loyalty can be defined in many different ways. Firstly, customer loyalty is when a person continuously interacts with a brand (or buys a specific product).

Anywhere.

Your loyal customers will choose you first if you give them an offer that they need and want

Loyalty, however, comes in many different guises. People may not be directly disloyal to one brand, but rather loyal to several.

Some people believe that customer loyalty is when a customer buys exclusively from a specific brand. For example, that means that you buy groceries from your favourite supermarket chain, even if it is not the cheapest or nearest option.

Others believe that loyalty is not always only defined by the purchase itself, but also by our behaviour: for example, how people discuss brands in social contexts.  A customer may buy just one single, very expensive, Chanel bag in their entire life but still be a keen ambassador for Chanel and speak well of the brand among their friends.

It is really up to each company to determine what loyalty means, and to come up with their own definition.

Is loyalty a measure of how much a customer buys, of how often they buy (frequency) – or is it about commitment?

That is up to you to decide. So decide what you consider to be customer loyalty!

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