Customer loyalty

Marketing Theory
Collection
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Customer loyalty, also known as customer viscosity, means that customers have a good opinion of a particular product or service, forming a "dependency" preference, and then Repeat purchase A trend of.
Customer loyalty Customer Loyal (CL) was popular in the 1970s Corporate image design Corporate Identity, CI )And the 1980s Customer satisfaction Customer Satisfaction (CS).
Its main contents can be expressed as follows: the enterprise should effectively eliminate and prevent customers' complaints and complaints, and constantly improve the quality of products, with the goal of meeting customers' needs and expectations Customer satisfaction To promote customer loyalty and establish a quality of mutual trust and interdependence between enterprises and customers Value chain ”。
Chinese name
Customer loyalty
Alias
Customer viscosity
Features
Customers have formed a preference for "dependency"
Impact
A trend of repeated purchase

definition

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Concept description

Customer loyalty, also known as customer viscosity, means that customers have a good opinion of a particular product or service, forming a "dependency" preference, and then Repeat purchase A trend of.
Customer loyalty It refers to the customer's attachment or admiration for the enterprise's products or services, which is mainly through the customer's emotion Loyalty, behavior loyalty and consciousness loyalty are displayed. Among them, emotional loyalty is reflected in the concept, behavior and Visual image High recognition and satisfaction; Behavioral loyalty refers to the repetition of products and services of the enterprise when customers consume again purchasing behavior Conscious loyalty is reflected in the customer's commitment to the enterprise's products and services Future consumption Intention. Thus, the customer consists of emotion, behavior and consciousness Loyal marketing Theory, which focuses on the evaluation of customer behavior trends, and reflects the future of the enterprise operating activities In competitive edge

Specific performance

Customer satisfaction
(1) Customer loyalty It means that consumers are Purchase Decision It has repeatedly shown a preference for a certain enterprise's products and brands purchasing behavior
(2) Loyal customers are the most valuable customers of an enterprise.
(3) A small increase in customer loyalty will lead to a large increase in profits.
(4) Customer Loyal marketing The focus of theory is profit. Building customer loyalty is the most effective way to achieve sustainable profit growth. The enterprise must transform the concept of doing business into the concept of establishing relationship with consumers, from focusing on the fight and conquest of consumers to focusing on the loyalty and persistence of consumers.

Summary

Customer loyalty refers to the psychological dependence and behavioral pursuit of customers on brands or suppliers (services) because they have accepted products or services and met their own needs. Customer loyalty is customer Loyal marketing The central structure of the activity is a measure of consumers' feelings towards the product, reflecting the possibility of one consumer switching to another brand, especially when the product is either in price or in Product characteristics When there is a change, with the increase of loyalty to the enterprise's products, the impact of competitive behavior on basic consumers decreases. So customer loyalty is a product wealth combination that reflects the relationship between consumer loyalty and future profits indicator Because loyalty to enterprise products can be directly transformed into future sales.

Five elements

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Key factors for building customer loyalty: (five elements)
product quality Static reflection before, during and after sales.
Customer Loyalty Elements
service level Process design before, during and after sales.
Technical capability Dynamic reflection before, during and after sales.
B Service effect
That is, what customers feel Satisfaction , can refer to consumer demand Many psychological indicators.
① Interactive empathy
② Relative alliance
D Concept inculcation
① Product (brand) self confirmation
② Confirmation of service (supplier)
E Continuous benign psychological stimulation and appreciation feeling

Differentiate concepts

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customer satisfaction And Customer loyalty The difference is that customer satisfaction is to evaluate the degree of meeting customers' original expectations in past transactions, while customer loyalty is to impulse customers' willingness to repurchase and participate in activities.

significance

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1. Favorable Enterprise core competitiveness Formation of
Successful customer relationships
In modern marketing activities, Marketing concept Is an enterprise Strategic formation The foundation of. The theory of customer loyalty marketing advocates taking customers as the center, suggesting that enterprises' marketing activities must focus on this center, pay attention to customers' evaluation of enterprises, and pursue high customer Satisfaction and loyalty , this is Marketing concept The improvement and development of. The theory of customer loyalty marketing requires enterprises to regard customers as an important resource of enterprises, systematically manage their customers Customer relationship management software To obtain relevant customer information and regard it as an enterprise strategic decision The foundation of. Practical proof , advocate Customer loyalty The core competitiveness formed will be reflected in the business activities of the enterprise. as Shanghai Mitsubishi Elevator Co., Ltd Imported since 1998 Customer satisfaction At the end of 2000, it was upgraded to customer loyalty. They first carried out in the enterprise Internal marketing To satisfy internal customers External customers First of all, we should satisfy our internal customers. Then, starting from the elevator as a special product, and taking the customer satisfaction contract as the main line product design , manufacturing, installation to maintenance, continuous tracking and implementation of user needs; Second, from user demand Import Quality function deployment (QFD) and listed in the company's policies and objectives Satisfaction And loyalty survey, transforming user needs into Product quality characteristics To create continuous customer loyalty. Shanghai Mitsubishi Elevator Production, sales Market share , profit, etc Economic indicators Ranked first in the same industry in China.
2. For enterprises operation flow and organization structure Will have a significant impact
Customer loyalty The implementation of marketing is a systematic project of enterprises, which requires enterprises to establish a business system based on loyalty, reasonably allocate and use resources, and carry out customer centered Customer relationship Management, in the enterprise's Sales automation marketing management Automation and customer service customer relationship management , which will have an impact on the existing business processes of the enterprise. At the same time, the implementation of customer loyalty is also a challenge to the existing organizational structure of the enterprise, which requires the enterprise to form a top-down smooth customer relationship management Information dissemination System, change the previous situation of mutual segmentation, so that the organization can quickly reflect customer information.
3. It is conducive to improving the cohesive force
stay Customer loyalty In marketing theory, the meaning of customer is extensive. It not only refers to the External customers It also refers to the internal employees of the enterprise. On the one hand, customer loyalty is to pursue the loyalty of external customers to the enterprise, and on the other hand, it is also to pursue the loyalty of enterprise employees. In a sense, employee loyalty plays an important role. Enterprise products and services are delivered to customers through employee behavior. An employee who has a high degree of loyalty to the enterprise will undoubtedly try to use his own good behavior to provide satisfactory services for the enterprise's customers, thus infecting customers and winning customer loyalty to the enterprise. Therefore, we advocate the concept of customer loyalty in the enterprise, care for employees, and provide employees with display personal ability And the space for development will greatly improve the work passion of employees and form a huge cohesion.
4. It is conducive to promoting social "integrity" construction
with Customer satisfaction As the starting point Customer loyalty For the purpose of business activities, it can promote enterprises to constantly pursue higher goals and create more public satisfaction Material wealth At the same time, the implementation of the customer-centric concept of enterprises can drive the establishment of enterprises Honesty and trustworthiness Of Operating mechanism And enhance the Service awareness and moral consciousness So as to put an end to all kinds of fraud illegal activities , in order to promote Social ethos And play a positive role.

Ten principles

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Do a good job customer service There are ten principles to improve customer loyalty. Only by grasping these principles can enterprises truly gain the benefits of services for products added value

Product quality price

Product quality is the basis for enterprises to provide quality services and improve customer loyalty. Development of many brand products in the world History tells us In a sense, consumers' loyalty to brands can also be said to be loyalty to their product quality. Only excellent and high-quality products can truly establish a "golden signboard" in people's minds and be loved by people. Of course, only the high quality of products is not enough product price It is also an important means to improve customer loyalty. Enterprises should obtain Normal profit by pricing objective , resolutely abandon pursuit huge profits Short-term behavior; Try to follow the customer's“ Expected price ”Pricing. The so-called "expected price" is the "psychological evaluation" of a product by most consumers. If Enterprise pricing If the "expected price" is exceeded, consumers will think the price is too high, Name and reality Discrepancy, thus weakening Desire to buy If the enterprise's pricing fails to meet the "expected price", consumers will doubt the performance of the product and hesitate to buy it.

Enterprise products

Enterprises must service personal Fully understand the enterprise's products, impart knowledge about products and provide relevant services, so that the enterprise can win the trust of customers. At the same time, service personnel should take the initiative to understand the products, services and all discount information of the enterprise, and try to predict the problems that may be raised by customers.

Enterprise customers

Enterprises should try their best to understand the situation of relevant customers, so that you can provide Consumption habits Products and services. Talk to them and listen to their voices, so you can easily find the root cause of their dissatisfaction. When the customer Service Provider After mutual understanding, such as enterprises' understanding of customers' service expectations and ways of receiving services, Service process It will become more smooth, the time will be shortened, and the service failure rate will also decrease. As a result, the cost of providing services to each customer will be reduced, which in turn will increase the profits of the enterprise. Enterprises are often trapped in their own world, and will not be aware of the actual feelings of customers. It will be very helpful for the enterprise to spend some time standing on another angle or being a competitor's customer.

Service quality

Every employee of the enterprise should be committed to creating a happy purchase experience for customers, and always strive to do better and surpass customers' expected value Always accept Enterprise services And satisfied customers will make positive publicity to the enterprise, and will recommend the enterprise's services to friends, neighbors, business partners or others. They will become the "voluntary" marketing personnel of the enterprise. Many enterprises, especially some small business It is developed by the continuous promotion of customers. In this case, the acquisition of new customers no longer requires the enterprise to pay additional costs, but it will obviously increase the profit of the enterprise.

Customer satisfaction

Customer satisfaction In a sense, it is a measure of the "quality" of enterprise operation. adopt Customer satisfaction Surveys, interviews, etc., to truly understand what the enterprise's customers need most and what is most valuable to them, and then think about the best way for them to get these perceptions from the services you provide. However, in addition to sales activities, after-sales service and corporate culture In addition to other factors, the level of customer satisfaction will also be subject to laws and other compulsions constraint condition Impact. For those who Psychological characteristics And society Behavior The best choice for enterprises is to give up their customers who have deviated from the enterprises they have been loyal to. In this sense, enterprises should try their best to improve customer satisfaction, rather than devote themselves to comprehensive or even extreme customer satisfaction at all costs.

Exceed customer expectations

Don't stick to the basic and predictable level, but provide customers with desired or even unexpected services. Determine "routine" in the industry, then look for opportunities beyond the routine, and give more choices than "normal needs". Customers will notice your high standard of service. Maybe these may be emulated by competitors, but enterprises only need Continuous improvement Will not fall behind others.

Customer personalized requirements

Usually, enterprises will predict according to their own imagination Target consumers Action. In fact, all demographic and psychological information about customers is limited, and prediction model Software also has limitations. Therefore, enterprises must change“ Mass Marketing ”And pay attention to meet the personalized requirements of customers. To do this, we must try to occupy Customer knowledge , take advantage of various available opportunities to obtain more comprehensive customer information, including analyzing the customer's language and behavior. If the enterprise does not continuously understand customers or fails to integrate customer knowledge acquired Implementation plan It is impossible to use the customer knowledge obtained to form eye-catching products or services.

Handling customer problems

To establish long-term mutual trust with customers Partnerships , we should be good at handling customer complaints or objections. Research shows that only one of the 25 dissatisfied customers will complain, and the other 24 will quietly transfer to other enterprises' products or services. Therefore, qualified enterprises should try their best to encourage customers to complain, and then try to solve their problems.
Research shows that the best customer is often the one who has suffered the greatest frustration. Complainants who have been solved satisfactorily are more likely to become the most loyal customers of the enterprise than those who have never been dissatisfied. Generally speaking, in Major issues 4% of the complainants are Problem solving Later, they will buy the products of the enterprise again, and the repurchase rate of small problem complainants can reach 53%. If the enterprise solves the complaint quickly, the repurchase rate will be between 52% and 95%.
of course, Customer satisfaction It does not mean customer loyalty. Dissatisfied consumers do not necessarily complain, but only turn to other enterprises. However, customer loyalty must be based on the lowest customer satisfaction. Customer complaints can become the best roadmap for enterprises to establish and improve their business. The customer can point out where your system went wrong and where weak link Customers can tell the enterprise in which aspects the products cannot meet their expectations, or the enterprise's work is not improving. Similarly, customers can also point out the advantages of the enterprise's competitors, or where the enterprise's employees lag behind others. These are the contents and conclusions that people can obtain only by paying consultants, and enterprises that are good at using them can gain a free fortune.

Make the purchase procedure simple

Enterprises, whether in stores, websites or enterprises Catalog The simpler the purchase procedure, the better. Simplify all unnecessary steps of writing and filling in forms to help enterprise customers find the products they need, explain how the products work, and do anything that can simplify the transaction process, lay down a criterion Simplified service process.

Serving internal customers

so-called Internal customers It refers to any employee of the enterprise. Each employee or group of employees has formed External customers Part of the supply cycle. If the internal customers do not have the appropriate service level, so that they can work with maximum efficiency, then the service received by the external customers will be adversely affected, which will inevitably cause dissatisfaction and even loss of loyalty of the external customers. If enterprises do not pay enough attention to this problem, it will inevitably lead to lower customer loyalty and higher customer churn rate, and ultimately reduce the profitability of enterprises.

value

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In fact, every businessman knows that having loyal customers is a good thing to some extent. However, most enterprises may not know how valuable loyal customers are to enterprises. Commonly used by enterprises Accounting profit Often masks the value of loyal customers. In accounting sales revenue It can only tell us the concept of quantity, but it lacks qualitative expression - that is, it cannot tell us which part of the revenue comes from loyal regular customers, let alone let us know that Loyal customers How much value will your life bring to the enterprise.
Research shows, enterprise operation In most cases, customers' profit expectations are proportional to their stay time. Lose a mature customer and win a new customer economic performance It is totally different. Harvard scholars took the American market as the research object and found that Automobile service industry Loss There must be at least three profit holes generated by one regular customer New customers Can be filled. At the same time, because of the familiarity and trust with old customers, the cost and energy of serving a new customer is much higher than that of serving an old customer.

IV. Features

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1. Impulsive loyalty is loyalty based on intention, that is, people tend to buy. Impulsive and loyal customers decision-making process It is relatively simple and easily affected by external factors, especially price related promotions. For impulsive loyalty, a more favorable price promotion information from a competitor may attract the customer.
2、 Emotional Loyalty is loyalty based on preference. People buy because they like. The customer decision of emotional loyalty mainly depends on the customer's attitude towards the enterprise or its products. A young man who is eager to own a Harley motorcycle may always have a strong Purchase intention So the clothes and watches he wears are all Harley Davidson brand.
3. Cognitive loyalty is based on information, and cognitive loyalty is rational loyalty. Their understanding of specific information such as the functional characteristics and cost performance of the goods purchasing behavior They often act as product experts. They not only understand the functions of the product, but also collect and study various data to understand the differences and technical characteristics of the product. They even know the performance of the product better than the product sales staff, where there are defects, etc. They will consider all kinds of factors comprehensively, and finally produce a perception that this product is more suitable for them, thus forming a loyal purchase behavior. Once there are better products in the market, they will also study and compare them carefully.
4. Behavioral loyalty is loyalty based on action, and customers have formed a buying inertia. Customers often need to make efforts or overcome certain obstacles in order to purchase such products. Behavioral loyal customers have formed purchase to a certain extent Enterprise products The habit of. Such customers are willing to overcome some obstacles in order to purchase the enterprise's products or services, such as waiting in line for a long time for a new product released by the enterprise. [1]