“Customer Loyalty” is not monolithic. Customers can be loyal in different ways and for different reasons. Building a more fine-grained understanding of loyalty can help brands better segment and retain their audiences.
A recent study by Mailchimp introduces a framework to understand customer loyalty with more nuance.
Psychological Drivers of Loyalty
“The Science of Loyalty” report introduces the Loyalty Wheel, a model that encapsulates the essence of consumer loyalty into four core neurobiological principles that build loyalty.
First reward engages the brain’s pleasure system to reinforce positive brand interactions. Memory then encodes this and helps influence future choices.
Over time and repeat behavior emotion starts to build a deeper connection and preference. Finally, social interaction can add aspects of peer pressure and status locking the behavior in place.
The Commitment Spectrum
The report argues that loyalty falls on a spectrum, ranging from “inert” to “fandom” loyalty.
- Inert Loyalty: Consumers purchase out of convenience rather than preference
- Habitual Loyalty: Loyalty emerges from routine rather than emotional ties
- Dedicated Loyalty: Consumers form an emotional connection to the brand’s vision and purpose
- Fandom: Characterized by a strong emotional bond and shared values amongst the brand’s community. Only 13% of respondents belonged to this group
Using these concepts, brands can better understand how customer loyalty builds in greater depth, bringing them one step closer to powerful customer relationships.
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