This deck talk about the types of customer loyalty, and what product leaders can learn from that

1. Are Your Loyal Customer
REALLY LOYAL?
Date: <DD/MM/YY>

2. Are Your Loyal Customer
REALLY LOYAL?
Sankalp Khandelwal
Agile Enthusiast

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CONVINIENCE v/s TOP OF MIND RECALL

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STORE LOYALTY
v/s
BRAND LOYALTY

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FORCED LOYALTY
Stickiness Factor
High Switching Cost

6. WHY IT IS SO IMPORTANT?
Revenue Stability
Helps in reducing the need for
expensive and resource-intensive
customer acquisition efforts
Higher Profit Margin
Often willing to pay premium
prices for products or services
Cost Efficiency
Acquiring new customers is more
expensive than retaining existing
ones.
Customer Feedback
More likely to share their opinions,
suggestions, and concerns
Brand Resilience
In times of crisis or negative publicity,
are more likely to stand by brand
Data and Insights
Analysing behaviour and preferences can
help tailor offerings, marketing strategies, and
customer service
Word-of-Mouth
Advocate brand. Recommend
products or services to friends,
family, and colleagues
Cross selling & Upselling
More receptive to cross-selling
and upselling. They are open to
trying new offerings
Competitive Advantage
Strong base of loyal customers can
help you withstand competitive
pressures
Sustainability
Customers who share values and appreciate
commitment to sustainability can contribute to
your brand's reputation

7. UNDERSTANDING AND IMPOROVING
CUSTOMER RETENTION WITH METRICS
Churn Rate
Percentage of customers
lost over a defined period
Retention Rate
Percentage of customers
retained over a specific time
frame.
Customer Lifetime
Value
Net revenue expected from
a customer over a set
period
Referral Rate
Percentage of referred
purchases to total purchases
Customer Health
Score
Composite metric based on
user activity, feature adoption,
and support interactions.
Identify reasons for customer
departure and implement
preventive measures.
Foundation for predictable
revenue from repeat and
retained customers.
Identify high-value customers
for targeted support and
success initiatives.
Higher referral rates indicate
strong customer loyalty and
positive brand perception.
Early detection of customer
dissatisfaction for proactive
intervention.

8. 8
When dealing with people, remember you
are not dealing with creatures of logic, but
creatures of emotion.
-Dale Carnegie

9. THE SCIENCE OF LOYALTY
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Transactional Loyalty
Monetary rewards,
discounts and offers
Behavioral Loyalty
Engage Customer for
Repetitive shopping habits
Emotional Loyalty
Attract Customer building
emotional connections

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TRANSACTIONAL LOYALTY
Transactional
Individuals accrue benefits here
based on transactional
exchanges
Incentivized
Customers remain loyal to brand for the
monetary rewards they are getting instead
of long-term associations.
Cognitive Loyalty
It’s purely a rational decision, also
called as – rational loyalty, or
cognitive loyalty.
Opportunistic
Remain loyal to the brand as long
as they don’t find the best deals
elsewhere
A
B C
D

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BEHAVIORAL LOYALTY
2
Stick to one rather than
seeking for its alternatives
Dedicated
1
Also called as habit
loyalty.
Loyal
Decision to buy from a source
repeatedly could come down to a
factor as simple as laziness or inertia
Habitual
An ongoing propensity to
buy the brand, usually as one
of several
Partial Loyalty
3 4

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1 Brand Devotion
A deeply held commitment to
repurchase or re-patronize a
preferred product consistently
Resilient Loyalty
Customer adhere to the
purchases despite situational
influences and marketing efforts
Brand Ambassador
Not only add to the brand image
but also associate themselves with
all associated products of the
brand.
EMOTIONAL LOYALTY
2
3

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HOW TO GET BETTER?
Focus on Customer Experience
• 86% of buyers will pay more for a better CX but
only 1% of customers feel that brands meet their
expectations.
• Start out by conducting extensive research that
involves focus groups and in-depth interviews
with your target audience
• Making your brand dependable will magnify
your brand equity and also elicit repurchases.
• Google is in the top three brands of 20184 and
one can argue that it’s because the brand is
viewed as dependable
Be Consistent
Win Over Them
• Share a personal bond with your loyal
customers to show them that they are more
than a transaction.
• Start Personalizing loyalty strategies and craft
them to WOW customers.
• Listen as this opens up a two-way dialogue
that will help you identify your true brand
advocates. Constant interactions will help you
boost your brand’s top of mind awareness.
• Proactively reach out to customers to show
your commitment to customer satisfaction.
Never Lose Touch

18. Q&A