What Flavor is Your Loyalty?

All too often, clients tell us that they have "no problems" with Customer Loyalty simply because their ongoing Customer Satisfaction surveys tell them their customers are "satisfied." Time and again, Ipsos Loyalty has demonstrated that "satisfied" customers are not necessarily loyal customers, as our internal research has shown that 60% of defecting customers are likely to describe themselves as "satisfied." We have established that true customer loyalty is a function of both attitudes and behaviors and cannot easily be assessed via a single measure.

For these reasons, it is truly imperative to understand the different types of customer loyalty:

Emotionally Loyal customers form connections to the brand that are heartfelt. These customers tend to form relationships with brands and the individuals who represent them, deriving a sense of satisfaction from that relationship.
Functionally Loyal customers are highly rational and focus upon the tangibles, such as performance and price. They are not looking for relationships, merely brands, and individuals who deliver what they promise, at the right price.
Habitually Loyal customers have no rationale for their buying behavior and exhibit no emotional or functional connections to the brand.