Customer loyalty is defined as a deeply held commitment to repurchase or repartronize a preferred product or service in the future despite competitive efforts to encourage the customer to switch vendors. The key to customer loyalty is the intent to repeat purchase. Here are three very important stages of customer loyalty:
- Some loyal customers are still available for a superior value proposition. These customers are still interested in receiving a superior value proposition from competitors. These customers require more relationship building and more education regarding the support services that add value to the jewelry products your company sells. Sell the risk of not buying from your company.
- Some loyal customers reflect super attitudinal loyalty. These loyal customers prefer your jewelry company and will share positive word-of-mouth referrals regarding your offerings, brand, products and services. Help these customers understand how they might offer more word-of-mouth referrals. Better yet—offer incentives for them to do so.
- The highest state of customer loyalty is based on emotions. These customers are so committed to your company that they seldom if ever reevaluate their buying decisions because they are so convinced based on their effective reasoning. These customers feel very strongly about their relationship with your offerings, brand, products, and services and feel that they “have to” do business with your jewelry company. Reinforce why these customers are smart to do business with your company.
There are three different states of customer loyalty to progress customers through. Why not start evaluating loyal customers and develop strategies to move them to the highest state of customer loyalty? Why not add stages of customer loyalty to your customer relationship management system and individual customer files?
Dr. Tim Malone served on the faculty of GIA for several years. Well known for his presentations at industry conferences and events, he now consults jewelry companies on how to offer sustainable competitive advantages, more effective differentiation, and sales, marketing, and merchandising management performance improvement. He can be reached at 760-305-7977 or at firstname.lastname@example.org.