Four levels of customer loyalty

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"Loyalty is a kind of emotional investment in people's heart, no matter how the environmental factors change, and regardless of the market to attract customers to make behavioral changes in the promotional measures, people in this emotional input in the future will continue to repeat the purchase of the same brand or the same brand of goods." "This is a description of loyalty from Professor Richard Oliver, a marketing expert.

In business behavior, there are four kinds of customer loyalty behaviors: Impulsive loyalty, emotional loyalty, cognitive loyalty, behavioral loyalty. These four kinds of customer loyalty have the following characteristics:

1, impulsive loyalty is based on the intention of loyalty, which means people tend to buy. Impulsive loyalty of the customer decision-making process is relatively simple, very vulnerable to external factors, especially the price-related promotions. For impulsive loyalists, a more favorable price promotion message from a competitor may attract the customer.

2, emotional loyalty is based on the loyalty of preference, people are because they like to buy. The emotional loyalty of the customer decision depends mainly on the customer's attitude towards the enterprise or the product of the enterprise. A young man, eager to own a Harley-Davidson motorcycle, may have been very keen to purchase the Davidson motor, wearing clothes and watches.

3, cognitive loyalty is based on information loyalty, cognitive loyalty is rational loyalty. They are the product of the functional characteristics, cost-effective and other specific information to understand the purchase behavior. They are often like a product expert, they not only understand the function of products, but also carry out a variety of data collection research to understand the differences and technical characteristics of products, they are even more than the product sales people know the performance of the product, where there are defects. They will take into account a variety of factors, resulting in the product more suitable for their own knowledge, thus forming a loyal purchase behavior. Once there are better products on the market, they will study and compare them carefully.

4, behavioral loyalty is based on the loyalty of action, customers have formed a purchase inertia. Customers often need to work hard or overcome certain obstacles in order to purchase such products. Behavior-loyal customers, to a certain extent, has formed the habit of purchasing enterprise products. Such customers are willing to overcome a number of obstacles in order to buy a product or service from an enterprise, such as being willing to queue for a long time for a new product released by the enterprise.

Cognitive loyalty and behavioral loyalty are more rational than impulsive loyalty and emotional loyalty, and such rational loyalties can usually last longer. Impulsive loyal customer loyalty is the lowest, the duration is short, behavioral loyalty of the highest customer loyalty, the longest duration.

For the enterprise to say, the most valuable or from the behavioral dimension of the definition of customer loyalty. In this way, enterprises can be designed to benefit the enterprise revenue marketing, to affect the customer's future behavior. Understanding these four kinds of customer loyalty behavior, we can in marketing to distinguish between customer loyalty behavior differences, and adopt different marketing strategies to attract different types of customers.

"100 off, 50."

Each consumption of 100 yuan donated 50 yuan consumption voucher, can be used in the next consumption. This is a retail shopping mall often used in the promotion, most of the shopping malls for this kind of buy back sales of the way to enjoy, this is why?

Let's first understand the "100 to 50" in the end is how many discount? Some people say is 50 percent, some people say is less than 70 percent, and say is 75 percent, then exactly how many fold?

If you take into account the usual rules for the use of rebates: once again consumed 100 yuan to be able to use 50 yuan of consumer vouchers. This means you can spend a maximum of 150 yuan in cash to get 200 yuan of merchandise, the highest discount rate is controlled at 75 percent. If considering the most extreme situation, the cumulative cost of 350 yuan, only to buy less than 400 yuan of goods, then discount rate of only 87 percent. In fact, the actual discount rate of the merchant is about 85 percent, if a certain amount of rebate is not used at all, the actual discount rate of the merchant is even about 90 percent.

Why is a real 85 percent or so promotional activities, dubbed "full 100 to send 50" after the stunt, it will become more attractive? This is because, in reality, there are many preferences of the impulsive shopping crowd, the business is to take advantage of people's psychology, to attract the most mainstream shopping center crowd, impulsive buyers.

In fact:

Impulsive loyal buyers are simply not going to calculate how much of a "100-to-50" discount is, and they are generally not sure, and they are more concerned that such promotions motivate them to buy. Impulsive clients are more likely to be women, and they value the buying process, and rarely do they do so after the event. In fact, these seemingly frugal customers are more blind in consumption, impulsive customers often in the same promotional incentives to increase the number of purchases, they will buy a lot of products they do not buy at ordinary times, but only in order not to waste the rebate.

Emotional loyalty buyers are often the preferred brands. They participate in the "100 to 50" activities and the use of coupons are mainly used to buy their own preferred brand products, they often do not participate in the activities of their favorite brands to express regret, and eventually they will not have any promotions to buy a favorite brand. Fruit powder is typical of this type.

A cognitive, loyal client will carefully calculate how much of a discount this promotion is, can help them to really save how much, and then based on the calculation of the situation to see if it is cost-effective, if they will buy behavior, and most of the cases they only buy the products they need, and rarely because of the incentive to increase the purchase. Cognitive clients are often able to get close to maximum discounts by careful planning, but the proportion of such customers is far less than 10%.

Behavior-loyal customers don't pay much attention to these promotions, and the reason they occasionally take part in the rebate is simply because of the kind of activity that happens. In most cases, they are not involved in this activity for the purpose of returning coupons, they have a steady buying habit and if they do, they are just icing on the cake. They prefer a direct loyalty program from a branded company, such as a member club.

With this understanding, you can understand why brands that are targeted at behavioral loyalties rarely use such promotions, and these brands are often never involved in a similar promotional campaign organized by the mall. Because their customers are mostly behavioral loyalty and emotional loyalty, buying back promotions can only confuse their truly loyal customers. What these brand-oriented behavior-loyal customers really need is a longer-term integrated integration plan or a more valuable member club plan.

Author: Syan