Customer loyalty is defined by repeat purchasing behavior rather than just satisfaction. Loyal customers regularly purchase across product lines, refer others, and are not easily swayed by competitors. Customer loyalty develops over time as customers progress through different loyalty stages from first-time users to advocates. While rewards programs provide "hard benefits", focusing on "soft benefits" like exclusive access, special privileges, and personalized treatment can also positively impact customer loyalty by appealing to customers on an emotional level. Soft benefits provide a low-cost way to recognize important customers and differentiate a brand.

1. CUSTOMER LOYALTY CUSTOMER LOYALTY Marc Menant – March 2007

2. Jill Griffin, author of " Customer Loyalty: How To Earn It: How to Keep It " says that: "Unlike customer satisfaction, which is an attitude, customer loyalty can be defined in terms of buying behavior.” A loyal customer is one who: - Makes regular repeat purchases - Purchases across product and service lines - Refers others - Demonstrates an immunity to the pull of the competition Can tolerate an occasional lapse in support without defecting, owing to the goodwill established through regular, consistent service CUSTOMER LOYALTY – GENERAL INFO

3. CUSTOMER LOYALTY – LOYALTY STAGES Customer loyalty doesn't happen overnight. It's built. Therefore, it's important to recognize that customers typically evolve through loyalty stages. Off-line customers loyalty stages: On-line customers loyalty stages: client advocate Repeat customer 1st time consumer prospect suspect repeat visitor 1st time buyer advocate surfer 1st time visitor repeat buyer client

4. Soft Benefits vs. Hard Benefits: While a combination of hard and soft benefits is ideal, you don't necessarily have to offer "points" or monetary rewards to customers to build loyalty. By providing customers "soft benefits" you can positively impact their behavior. Rick Ferguson wrote an article on soft benefits (The Softer Side of Loyalty*): "Hard benefits are rewards that let customers know they’re getting something free in exchange for their continued patronage. Everybody likes to think he’s getting a deal. This is the rational side of the customer brain at work: I’m getting my money’s worth. But recognition is equally important. Soft benefits are recognition elements that tell customers you know they’re important. Soft benefits help differentiate you from your competitors, particularly in the eyes of your best customers. By offering them privilege, access, special treatment, and other amenities that only program members can obtain, you appeal to the emotional side of the customer brain: They know I’m important." CUSTOMER LOYALTY – SOFT VS. HARD BENEFITS * Please follow the link to find the article: http://chiefmarketer.com/crm_loop/loyalty_soft_benefits_07202006/index.html

5. Examples of soft benefits: Exclusive Access such as: access to a members-only website where members can find exclusive offers or personalized benefits, members-only parties and events - advanced notification of in-store events - celebrity meet-and-greets - Special Privileges such as: - members-only service desks - service guarantees - advance notice of sales and new products - a members-only newsletter or magazine - personalized gifts - preferential in-store treatment Soft benefits can be an easy and low-cost first step to building loyalty and turning buyers into customers. CUSTOMER LOYALTY – SOFT VS. HARD BENEFITS

6. Are Your Emails Being Seen? 59% of email users routinely block images (Important to keep in mind when you are designing your email communications). MarketingSherpa.com conducted a study of 1,323 online consumers over age 18 and in additional to the 59% blocking images in their emails, other key findings include: 69% of at-work email users view emails in their preview panes 27% of B-to-C consumers use preview panes 38% of online consumers use preview pane 'capable' email clients 64% of people who are offered preview panes start using them as their default 36% of email users aged 18-34 block images 48% of email users aged 35-54 block images 37% of email users aged 55 and over block images CUSTOMER LOYALTY Sources: Monthy Loyalty Insight for Jewelry Retailers, March 2006 Marketingsherpa.com Chiefmarketer.com