Building a Customer Loyalty Definition

We hear words like customer loyalty thrown around all the time without really knowing what they mean. Consulting multiple sources, we thought we would create our own definition of customer loyalty. If you have your own definition or a better one, let us know! We’d love to keep this definition continuously growing into something better.

Customer loyalty definition

When we first started our search, we started at the most reliable resource, Wikipedia… The customer loyalty definition Wikipedia decided upon is customer loyalty is made up of three factors: “relationship strength, perceived alternatives, and critical episodes.”

The second factor of perceived alternatives means that even if a customer hates their service, they could still be loyal to the company. A lack of perceived alternatives in a monopoly forces consumers to be loyal. Forced loyalty isn’t loyalty. It’s almost like Stockholm syndrome for consumers. Let’s keep trying.

Philip Kotler is a name that kept reappearing in our research. Finally, we gave in. The customer loyalty definition Kotler stated is great customer service leads to customer loyalty. Customer service is made up of the benefits outweighing the costs in addition to the competitive advantage. This is better. Customers aren’t held hostage to companies but instead conducting a cost-benefit analysis amongst competitors.

A customer loyalty definition pdf would mean that an organization is very sure of their definition. So sure they have placed it in an unalterable document. They were all so long. Why?? Why is customer service so hard to define in a regular amount of words? It might have taken three weeks to work through a couple, but we did it. The best one was basically a wordy, cumbersome sentence to say customers come back to this brand instead of changing to a competitor. All of these definitions were too wordy. We need something short and simple, and something anyone can understand reading it the first time.

From what we know so far, there are likely multiple factors to first define. Customer loyalty definition cannot be as simple as defining loyalty and moving on. Let’s first define customer satisfaction.

Customer satisfaction definition

Philip Kotler defined customer satisfaction as benefits – costs + competitive advantage = customer satisfaction. Customer satisfaction directly ties into a customer retention definition.

If you leave your customers satisfied, they’ll stick around.

Varying definitions

Pending on the department, you could have a different customer loyalty definition. Marketing, for example, might define customer loyalty as customers that use resources provided or engage with advertisements. Interacting between different customer social media accounts could be an addition to a definition.

Development could even have their own customer loyalty definition. They could decide that users who use the application and report bugs, not that anyone ever experiences those, are loyal to the company.

Customer loyalty programs

Whoever your loyal customers are, consider offering them loyalty programs. Whether it is legacy pricing for your first customers, invite-only meet and greets with the team, or initial access to new features, your loyal customers should know you appreciate them.

Offering customer loyalty programs to customers will likely increase loyalty and establish an even greater loyalty.

Decisively, our customer loyalty definition is a customer’s brand dedication because of the consistent and repeated satisfaction the brand delivers.

What is customer loyalty to you?

Get started teaching your employees how to increase customer loyalty here.

Image source: Giphy

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