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How Do You Define Customer Loyalty?

Many people associate the quality of loyalty with their families, close friends, even their dogs. Loyalty plays a part in most of our daily activities. The brand of toothpaste most of us use each morning probably is one we have used for years, as maybe our coffee, soap and cleaning solutions. We generally order from the same pizza delivery service, visit a dry cleaner whose face we know and whose reputation we trust.

As a result, when I looked up the word ‘loyalty’ in the dictionary, I wasn’t surprise by its definition: “Faithfulness; advocacy, devotion; constancy”.


Now, when you ask marketers how do you translate loyalty into business terms, there is a lot of confusion. Are you talking about a rewards credit card, or is it a grocery discount card? Or are you talking about a coalition program? Frequent shopper program? Or is it an email club? Punch cards? I don’t want you to get bogged down by these tactical descriptions of marketing programs. Instead, I want to give you a definition of loyalty marketing that provides you and your organization a strategic focus.

After helping over twenty-five Fortune 500 companies understand the drivers of loyalty and defection from the customers’ point of view, I define loyalty marketing as: “Discipline of identifying and nurturing the yield of best customers through a long-term, reciprocity, value-added relationship.”*

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This definition speaks to your CFO as well as your customer experience manager.

Now that we have some common definitions, it’s time to concentrate on the hard stuff: nurturing customer loyalty. My upcoming blog posts will focus on five key elements of successful loyalty marketing:

  1. Insight — Create a competitive advantage
  2. Precision — Treat different customers differently
  3. Relevancy— Make it resonate
  4. Reciprocity — Deliver value in every interaction
  5. Yield — Gain an amount as a return on an investment

* Definition is trademarked to Customer Insight Group, Inc.

How do you justify a loyalty program?

Trying to justify a loyalty marketing program? Here are 8 major benefits, each a competitive advantage, only a loyalty program can provide.

Who is Customer Insight Group?

Customer Insight Group, is a Colorado based loyalty marketing agency leading the way in helping companies engage, keep and grow profitable customer relationships.