Understanding The Drivers That Build Customer Loyalty

If you are not trying to build customer loyalty then you are throwing potential sales away. By doing research into three key customer attributes then you can start to pinpoint advertising techniques and promotions that will truly work.

The first type to consider is customer behavior research. This aims to work out if there are ingrained behaviors or purchase decisions that customers make. For example, many men will purchase bread and milk from gas stations on the way home in the evenings purely because of the convenience. It requires good supply chain management to be able to locate and analyze this type of data. Such analysis can then inform the type of promotions or advertisement locations you choose to focus on.

The second type of research to consider is looking at customer attitudes at the time of purchase. You can often build customer loyalty simply by being more polite, courteous or convenient in providing your purchase option. Anybody buying a Cartier watch would expect a high level of customer service at the time of purchase and will probably return to buy more because of the special treatment they received. As a simpler example, car salesmen do the same thing knowing that customers return to the showroom repeatedly over their lifetime if they are completely satisfied with the purchase process.

The final, and most traditional, type of customer loyalty research tries to identify the demographics of your customers. It is easier to build customer loyalty if you know the age band, social level, etc. of your own customers. Your products can be tailored specifically to their needs and your advertising campaigns and communication methods can also be focused. One prime example of this are products that target the youth audience which is best communicated with via online and mobile space advertising. Combine the three types of research to establish a loyal customer base and even win over some new ones.