Customer loyalty is the physiological decision made by a customer to favour a particular brand either because of familiarity and they therefore fear to try new products or the customers is satisfied with it and it is to their convenience. Customer loyalty reward programs are therefore structured marketing strategies by a particular organization to keep their loyal customers as well as getting more.
There are two types of royalties; monogamous and polygamous royalty which is more popular. Polygamous is where a customer is not 100% loyal to a particular product or organization rather than to many different ones. Monogamous loyalty is very rare to get and so products strive to get the maximum loyalty they possibly can.
A customer’s loyalty can be gauged in different way such as:
- They recommend your product to other clients
- They try out other services that you offer
- They highly believe that your products are better than all the rest
- They are satisfied and not looking for a brand to replace you
- They give constructive criticism
The most common royalty solution is the use o loyalty cards, popularly known as reward cards. This card which typically resembles a credit card gathers points for the customer and therefore entitles them to particular discounts and the points at a certain amount can be used for making purchases. With time the product providers can tell the favorite brand of products for a particular client and their special requirements.
It is however very important for a service provider not too be too confident about their loyal customers and to think that they cannot shift their loyalty. The fact that a customer is loyal simply means that you are giving them what they want. A competitor can come up with better strategies and they may be swayed. A good customer loyalty solution plan should therefore be implemented to ensure they stay loyal.