Loyalty

Derived from the customers perception of value Adds repeat sales and new customers through word-of-mouth advertising If customers do not perceive value received, they may find a better deal (lower prices, friendlier service, more convenience, more choices, or more for the same price)

Loyal Customer Characteristics

Perceive value Experience higher satisfaction in their work

Partnership mentality

The product must be differentiated and positively perceived in customers eyes

Manage Loyal Customers

Customer satisfaction transforms regular customers into loyal customers Understand and identify the customers needs Customers feelings are influenced by their interactions with the organization and its competition Loyalty occurs when customers perceive greater quality (value) from the organization

Continued.
Level of service should be higher than expected Organizations must know their customers will return or not. Satisfaction levels must be measured regularly Better opportunity to build loyalty if you do all you can to prevent customers from leaving the organization