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Customer loyalty

Customer recognition and satisfaction of the enterprise

Customer loyalty refers to the trust, commitment, emotional maintenance and Emotional dependence 。 On the basis of long-term mutual benefit between the enterprise and customers, customers purchase and use the enterprise's products and services for a long time and repeatedly. Loyal customers will buy more and more frequently the company's products, will be more willing to try new products or buy more high-end products, and will be more willing to accept brand related Cross purchase , will be willing to recommend new customers and spread information that is conducive to the enterprise and brand, and is less sensitive to price, willing to pay high prices for high quality. Due to the convention of transactions, enterprises Loyal customers Paid transaction cost The service cost is lower.^[1]

Chinese name: Customer loyalty
Foreign name: Customer Loyalty

Performance: customer yes enterprise Of idea Identification and satisfied
Related figures: Seth

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connotation

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1. Customers

Customers refer to users of enterprise products or services or recipient 。 yes Internal customers And External customers Points. The so-called internal customers refer to the employees of the enterprise; External customers are not only products or services End consumer , also including products Circulation process Customers in, and even related Social groups 。

2. Customer satisfaction and customer satisfaction

(1) Customer satisfaction

Philip Kotler It is believed that "customer satisfaction" refers to the relationship between a person and his expected value The feeling state of pleasure or disappointment formed after comparison ". Henry Assel also believes that when the actual Consumption effect When consumers' expectations are met, it will lead to satisfaction. Otherwise, it will lead to customer dissatisfaction.

It can be seen from the above definition that the satisfaction level is a function of the difference between the perceived effect and the expected value. If the effect is lower than expected, customers will be dissatisfied; If the perceived effect matches the expectation, the customer will be satisfied; If the perceived effect exceeds expectations, customers will be highly satisfied, happy or delighted.

（2） customer satisfaction

Customer satisfaction is a quantitative description of customer satisfaction. It can be briefly defined as the degree to which customers' actual feelings about the enterprise's products and services are compared with their expectations.

3. Customer loyalty and customer loyalty

(1) Customer loyalty

In marketing practice, customer loyalty is defined as Customer purchase behavior Of Continuity 。 It refers to the degree of high trust and loyalty in thought and emotion shown by customers' reliance on and recognition of enterprise products or services, and their insistence on long-term purchase and use of enterprise products or services. It is the advantage of customers in long-term competition of enterprise products Comprehensive evaluation 。

(2) Customer loyalty

Customer loyalty refers to the degree of customer loyalty, which is a quantitative concept. Customer loyalty refers to the degree to which customers have feelings for the products or services of an enterprise, form a preference and buy the products or services of the enterprise repeatedly for a long time due to the influence of quality, price, service and other factors.

Customer level

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At the bottom is that customers have no sense of loyalty to the enterprise. They are indifferent to the enterprise and only buy by price, convenience and other factors.

arrangement

The second level is the customer's satisfaction or habit with the enterprise's products or services. their purchasing behavior Is subject to Force of habit Driven by. On the one hand, he is afraid that he has no time and energy to choose products or services of other enterprises. On the other hand, transforming the enterprise may make them pay Transfer costs 。

The third level is that customers have a preference for an enterprise, which is based on the comparison with other competitive enterprises. This preference is related to such factors as the corporate image, the high quality of the products and services of the enterprise, and the consumption experience of customers, thus making the emotional connection between customers and enterprises.

The top level is the highest level of customer loyalty. Customers are loyal to the enterprise's products or services, and have strong preferences and emotional sustenance. This high degree of customer loyalty to the enterprise has become Enterprise profit The real source of.

relationship

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The research results of American scholars Jones and Seth show that customer loyalty and Customer satisfaction The relationship of is affected by the industrial competition, and the factors that affect the competition mainly include the following four categories:

(1) Laws restricting competition;

(2) High cost of purchase change;

(3) Know how ；

Relationship with customer satisfaction

(4) Effective frequent visitors Incentive plan 。

1-1, Dotted line The upper left represents the low competition area, the lower right of the dotted line represents the high competition area, and curve 1 and curve 2 respectively represent the relationship between customer satisfaction and customer loyalty probability in the highly competitive industry and the low competitive industry.

As shown in curve 1, in highly competitive industries, fully satisfied customers are far more loyal than satisfied customers. At the right end of the curve (customer satisfaction score 5), as long as customer satisfaction decreases slightly, the possibility of customer loyalty will drop sharply. This shows that in order to cultivate customer loyalty, enterprises must try their best Make customers completely satisfied 。

In industries with low competition, the situation described in curve 2 seems to indicate that customer satisfaction has little impact on customer loyalty. But this is a false impression. After the obstacles restricting competition are removed, Curve 2 will soon become the same as Curve 1. Because in the low level of competition, customers have limited choice space. Even if they are dissatisfied, they often have no choice but to continue to use the products and services of the enterprise, which shows a false loyalty. With the spread of proprietary knowledge scale effect Reduction distribution channel The share of customers, the popularity of frequent customer rewards, and so on, will show customer disloyalty through a large number of customer turnover. Therefore, enterprises in a low degree of competition should be prepared for danger in times of peace and strive to improve customer satisfaction. Otherwise, once competition intensifies and customers jump out of the box, enterprises will be in trouble.

The above analysis shows that the relationship between customer satisfaction and customer behavioral loyalty is not always strong positive correlation Relationship. But there is no doubt that whether in highly competitive industries or low competitive industries, high customer satisfaction is a necessary condition to form customer loyalty, and customer loyalty will undoubtedly play a huge role in customer behavior.

classification

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Kathleen Sindell (2000) divided pseudo loyalty into monopoly loyalty, inertia loyalty, potential loyalty, convenience loyalty, price loyalty and incentive loyalty. Gremler and Brown (1996) divided it into behavioral loyalty, intentional loyalty and emotional loyalty based on the research of ancestors.

strategy

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along with market competition Customer loyalty has become a decisive factor affecting the long-term profits of enterprises. Marked by customer loyalty market share , which is more meaningful than the market share measured by the number of customers. Enterprise managers will marketing management In order to gain key competitive advantages in the fierce competition, the focus of the company will turn to improving customer loyalty.

1. Customer loyalty enables enterprises to obtain a higher long-term Profitability 。

(1) Customer loyalty is conducive to enterprise consolidation ready market

An enterprise with high customer loyalty means a higher level of Barriers to entry At the same time, in order to attract existing customers, competitors must invest a lot of money. This effort usually goes through a continuation phase, and is accompanied by Special risks 。 This often deters competitors, thus effectively protecting the existing market.

(2) Customer loyalty is conducive to reducing marketing cost

To treat loyal customers, enterprises only need to often care about the interests and needs of regular customers, and do better in after-sales service and other links to retain loyal customers, which does not require huge initial costs, but also saves a lot of transaction cost and Communication costs , while being loyal to customers Word of mouth effect Bring efficient, low-cost Marketing effect 。

2. Customer loyalty enables enterprises to get better protection in competition.

(1) Customers will not choose immediately New services 。 The reason why customers are loyal to an enterprise is not only because the enterprise can provide the products that customers need, but more importantly, the enterprise can provide more for customers through high-quality service added value 。

(2) Customers will not soon turn to low price products. Just as loyal customers are willing to pay extra, they are also unlikely to turn to new enterprises just because of the temptation of low prices. However, when the price difference is large, customers will not always remain loyal to the enterprise.

significance

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competitive power

In modern marketing activities, Marketing concept Is an enterprise Strategic formation The foundation of. Advocacy of customer loyalty theory Customer focus , suggesting that the marketing activities of enterprises must focus on this center, pay attention to the evaluation of customers on enterprises, and pursue high customer Satisfaction And loyalty, which is Marketing concept The improvement and development of. Practice has proved that the core competitiveness formed by advocating customer loyalty will operating activities Can be reflected in. as Shanghai Mitsubishi Elevator Co., Ltd The concept of customer satisfaction has been introduced since 1998 and upgraded to customer loyalty at the end of 2000. They first carried out in the enterprise Internal marketing To satisfy the internal customers, and then start from the special product of elevator, take the contract of customer satisfaction 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 , 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.

economic performance

Customer loyalty brings about repeated purchase, which increases the income of the enterprise, and the longer the regular customers stay, the greater the purchase volume; The cost of the enterprise is reduced due to the reduction of the cost of attracting customers. Relevant research shows that the cost of acquiring a new customer is about times that of maintaining an old customer competitiveness In a strong market, it is very difficult for enterprises to win new customers; Due to the "word-of-mouth effect", old customers will recommend others to buy, thus increasing new customers, thus forming a virtuous circle effect of "enterprise profitability and customer loyalty".

Integrity construction

Taking customer satisfaction as the starting point and customer loyalty as the goal of business activities can promote enterprises to constantly pursue higher goals and create more public satisfied Material wealth 。 At the same time, enterprises Customer focus The implementation of the concept 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.

Improve strategy

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（1） Establishment Customer database

The database established to improve customer loyalty should have the following characteristics:

1. A dynamic, integrated Customer management And query system;

2. A loyal customer identification system;

3. One Customer churn display system ；

4. One Customer purchase behavior Reference system 。 By using customer database, enterprises can service personal Understand customers' preferences and habits when providing products and services to customers purchasing behavior To provide more targeted Personalized service 。

The establishment and management of customer database is only a means, not an end. The purpose of the enterprise is to transform customer data into effective marketing decision support information and Customer knowledge , and then into competitive edge 。 Corporate Practical proof ， Enterprise profit 80% comes from 20% of its customers. Only by establishing relationships with core customers, enterprises are scarce Marketing resources Will get the most effective configuration and utilization, so as to significantly improve the Profitability 。

The most practical way to identify core customers is to answer three overlapping questions.

(1) Which part of your customers are most profitable and loyal? Pay attention to those customers who are insensitive to price, pay quickly, require less service, have stable preferences, and often buy;

(2) Which customers will buy the most products or services you provide?

(3) Which of your customers are more valuable to you than your competitors? By answering these three questions, we can get a clear list of core customers, and these core customers are the implementation customers of the enterprise Loyal marketing Focus of Manage Objects 。

（2） Transcendence Customer expectations , improve customer satisfaction

Customer expectation refers to the level at which customers hope that the products and services provided by the enterprise can meet their needs. If this expectation is met, customers will be satisfied, otherwise, customers will be dissatisfied. Surpassing customer expectations means that an enterprise can not only meet customer expectations, but also provide more perfect products and services that care more about customers, exceed customer expectations, so that it can get unexpected and even surprising services and benefits, and obtain satisfaction at a higher level, thus generating emotional satisfaction for the enterprise, Develop into a stable loyal customer group.

（3） Treat correctly Customer complaints

To establish long-term mutual trust with customers Partnerships , we should be good at handling Customer complaints 。 Employees of some enterprises often show impatience, unwelcome, and even an aversion when customers complain. In fact, this is a very dangerous practice, which often makes enterprises lose their valuable Customer resources 。

（4） Improve Customer switching cost

Generally speaking, customers will face a series of tangible or intangible Conversion costs 。 For a single customer, it takes time and energy to change the purchase target to find, understand and contact new products again, give up the discounts enjoyed by the original products, change the use habits, and may also face some economic, social or spiritual risks; For institutional buyers, the replacement of equipment with another product means personnel Retraining And products Replacement cost 。 To increase the switching cost is to study the switching cost of customers, and take effective measures to artificially increase the switching cost, so as to reduce customer withdrawal and ensure that customers have a positive impact on the products or services of the enterprise Repeat purchase 。

（5） Improve internal Service quality , pay attention to the cultivation of employee loyalty

Harvard Business School According to Professor Deng Xiaoping, customer retention rate and Employee retention rate They are mutually reinforcing. This is because the products and services provided by the enterprise to customers are all completed by internal employees, and their behavior and behavior results are the direct source of customer evaluation of service quality. A loyal employee will take the initiative to care for customers, be enthusiastic about providing services to customers, and be happy that customer problems have been solved. Therefore, in the process of cultivating customer loyalty, enterprises should not only Marketing work In addition, we should pay attention to the management of internal employees and strive to improve their Satisfaction And loyalty.

（6） Strengthen exit management and reduce Customer churn

Exit refers to that the customer no longer purchases the products or services of the enterprise and terminates the business relationship with the enterprise. The correct approach is to timely do a good job in customer exit management, carefully analyze the reasons for customer exit, summarize experience and lessons, and use this information Improve product And services, and finally re establish normal business relations with these customers. It is a very complicated job to analyze the reasons for customers' withdrawal. Customer withdrawal may be caused by a single factor, or it may be the result of multiple factors.

Related misunderstandings

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stay enterprise operation In the process, many people believe that if customers are satisfied, they will frequently purchase products or services of the enterprise, thus forming customer loyalty. In fact, customer satisfaction is Customer needs The pleasure of being satisfied is a kind of Psychological activities , which originates from Customer expectations The actual comparison with the service they felt. But what customer loyalty shows is the persistence of immunity purchasing behavior 。 A customer is right Enterprise products Or service satisfaction does not necessarily mean that he will still buy the products of the enterprise next time. According to《 Harvard Business Review 》The report shows that 65%~85% of customers who are satisfied with commodities will still choose new ones succedaneum 。 It should be said that customer satisfaction is customer loyalty necessary condition Instead of sufficient condition 。

Price concessions

Many managers believe that to establish customer loyalty, Price concessions It's the key. It is undeniable that price concessions such as discounts and gifts may increase sales and Market share However, this practice rarely makes customers really far away competitor , becoming a sustainable enterprise purchaser 。 In fact, lowering the price will not help to establish customer loyalty, but will turn the original loyal customers into price sensitive customers, which will ultimately damage the interests of the enterprise itself; At the same time, low prices also reduce the barriers for other competitors to enter the market, making businesses face more competitors.

Market share

Entrepreneurs with such ideas have not really understood the market Occupancy And customers loyalty The difference between. Under the premise of the same market, the market share is the result of the comparison between the enterprise and its competitors; Loyalty is the reflection of the customer share and customer persistence ratio of an enterprise. If an enterprise is keen on improving its market share, it will inevitably focus on developing new customers and ignore maintaining old customers. In fact, the increase of market share may hinder Loyal customers Development of. Because once the market share is increased, the enterprise must face a variety of customers and use different products or services to please different customers. It is likely to ignore the source of customers with great potential to become loyal customers and make them turn to competitors. In this way, the losses of enterprises will be greater and more difficult to make up.

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