Loyalty Models, Part 2

In the previous blog, the general form for the construction of a loyalty model was postulated. A base equation hypothesized that loyalty could be described by measuring the strength of the relationship between the company and its customers. A sub-model was proposed to show that the strength of the company-customer relationship could be explained by…

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The Generational Shift in Brand Loyalty

What is brand loyalty? There are still plenty of people out there who buy the same brand of toilet paper every time they go to the store, but brand loyalty is about more than that these days. Brands that retain customers are the brands that make a superior quality product, have excellent customer service, and…

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3 Reasons Why Customer Service Should Exceed Expectations

In our last article, we discussed 4 Steps to GIVE Exceptional Customer Service. Now we want to go over some of the key reasons why it is so important that customer service should be exceptional—to exceed expectations. If customers are receiving exceptional customer service, they would naturally have a tendency to return to the same store…

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6 Crippling Customer Service Non-Calls

The most devastating customer service calls are the ones you don’t get. They are far more damaging to your business that the ones you get a chance to answer and respond to. When you have an irate, disappointed, or troubled customer on the line or in front of you, you have the opportunity to turn…

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Building a Loyalty Model

The kind of loyalty model I will be discussing in the next several blogs is a basic business model that is often used in strategic management. The basic premise of the model is that customer loyalty leads to profitability. The purpose of this model is to develop an understanding of the business components that contribute…

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Illegal Loyalty Programs

What could be illegal about a customer loyalty program? It seems that almost every business has some form of loyalty program. There are loyalty programs for grocery and clothing stores, airlines, and just about every other business that would like to create some form of relationship (loyalty) with their customers. An article written by Tim…

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Why Bother with Loyalty?

Some research suggests the customer loyalty may not be enough. A study was done by Timothy Keiningham, Lerzan Aksoy, Alexander Buoye, and Bruce Cooil that has some interesting findings. They performed a two-year longitudinal study of more than 17,000 consumers and examining purchases in more than a dozen industries in nine countries. According to the…

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Who Ever Heard of Bad Loyalty?

Did you ever imagine that there could be an issue with customer loyalty? Could there be a time when customer loyalty may not be the best answer? When we think of customer loyalty we often think of it as a way to help a company survive difficult market conditions. We think of customer loyalty synonymously…

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Don’t Let Valued Customers Be the Last to Know

A restaurant in my town closed its doors the other day completely unannounced. Without even a hint that things weren’t going well. In fact, I ate there just last week and had to wait for a table—the place was that crowded. I learned the news that my favorite go-to place for a night out was…

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The Real Cost of Bad Customer Service

Customer Service is sacred to any business, but how can you really measure the significance of its impact? So called bad customer service stems from the reluctance to embrace what the customer actually wants and how to effectively deliver it. If you can direct your customer as quickly as possible to the desired destination then…

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