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Levels of Customer Loyalty

Brand Loyalty is the tendency of consumers to continue to support one brand over another. If you consistently have customers that follow you, engage with you, and purchase from you over your competition, you have created brand loyalty. Brand loyalty falls into the category of emotional loyalty. There are four levels of loyalty:

  • Habitual or Behavioral Loyalty:
  • >>This is loyalty of convenience, habit, or daily routine. There is no emotional connection, the customer will swap for a better or more convenient option.
  • >>Your neighborhood convenience store is an example of habitual loyalty. It is convenient and on your way home. If you switch routes or move will you continue to use the same convenience store when it is out of your way? Probably not, unless you have emotional loyalty.
  • Rational Loyalty:
  • >>The loyalty of a smart shopper. This occurs when a customer is committed to a brand for beneficial reasons, such as affordability or extended warranty. They will switch to another brand if they can find a better price or more desirable warranty.
  • Transactional Loyalty:
  • >>This type of loyalty usually comes with a benefit such as gathering points on purchases or accrual of benefits.
  • >>Frequent flyer miles and gas points for groceries (I’m looking at you Kroger), and discount punch cards--spend a certain amount, get a discount on your next purchase--are examples of transactional loyalty.
  • >>The goal of transactional loyalty is to get customers hooked and engaged as members of a reward program.
    • Emotional Loyalty:
    • >>This is the most desirable of consumer loyalty, your ride or die customers. Emotional loyalty occurs when customers are emotionally engaged. They believe in the brand. They will advocate for the brand.
    • >>When customers are emotionally loyal they will purchase goods or services regardless of price or convenience factors. They feel connected to a brand.
    • >>Why an Emotional Connection Matters in Loyalty and How to Achieve It
  • Is there a brand or artist in town that you feel loyal to? CLICK HERE to tell us about them and sign up for The Big Bad Business Newsletter, bringing business bites to your inbox twice a month!
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Andrea Drummond