From the course: Marketing Strategy: Build Customer Loyalty

Categorizing loyalty, there are three types

From the course: Marketing Strategy: Build Customer Loyalty

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Categorizing loyalty, there are three types

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- [Narrator] Earlier I explained that any company in any industry can create customer loyalty. Although the industry you're in affects loyalty, we reviewed seven loyalty drivers In an earlier lesson, I grouped business categories Traditional marketing views emotional-driven loyalty as superior to convenience-driven loyalty. This is why I presented loyalty drivers along a ladder from convenience to self-worth. However, our goal as marketers is to engage in win-win relationships with customers looking for great matchups. So, rather than thinking of one type of loyalty being better than another at face value, you're better off focusing on building loyalty that fits the skills of your organization. My research shows that there are three types of loyalty, heart, head, and hand, that is emotional, rational, and habitual loyalty. Heart loyalty is an emotional commitment to a brand. Heart loyal customers feel passion and a merging of their identity with the brand's. Purchasing the brand says something about the type of person they are. When they meet someone who also likes the brand, they feel shared identity and kinship. They smile when they think about the brand and are likely to recommend it to others, because they want to spread the love. Also, if someone attacks the brand these customers feel personally attacked. What brands do you think may have lots of heart loyals? Does Apple or Harley Davidson come to mind? Head loyalty is a rational commitment to a brand. It's built over time, because of the brand's superior functional performance. Bain & Company consultant Frederick Reichheld that delivers good value for their money and will be upset if the brand fails them. They're generally interested in data and the details of how the brand achieves its performance. Are there brands you are committed to because of what they do for you? For me, I'm on my second Scott hardtail bicycle, because their carbon engineering is great. Finally, hand loyalty happens because we favor convenience and we don't want to expend mental resources when what we are used to works fine. I go to the same gas station and grocery store every week and purchase a computer brand that integrates with the rest of my devices. I don't love any of these brands, but they're familiar and they know exactly how to navigate my purchase and use experience so it's consistently good. What brands are you hand loyal to? Hand, head, and heart loyalty are activated for the customer. It makes sense that I discussed in an earlier lesson. Different people care about different things And even though Amazon forecasted strong sales, That's why even when a company behaves consistently it will still have different types of loyal customers. What is most important is that you focus on the type of loyalty where your organization is likely to be most successful.

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