Relationship segmentation is based on customers’ perceptions of their relationships with an organisation and their behaviour within that relationship.
Premium/Hard core loyalty – These are consumers with undivided loyalty to one brand
Soft core loyalty – Buyers with divided loyalty between two or more brands.
Latent loyalty – A high attachment towards the product combined with low repeat purchases. Perhaps the lack of (current) availability or a partners preferences, restrict the amount that is purchased
Passive or Inertia loyalty – a low attachment to the product and high repeat purchases. Is the customer staying with the organisation by choice or exhibiting passive loyalty? Passive or Inertia loyalty can be caused by:
- Limited choice: Where there is only a single choice of retailer. Or forced choice situations like blades for your safety razor.
- Habitual buying: When you buy your lunch from the café in or near to your college, you do so because it is convenient – not because you are loyal. A similar case is travelling by the same train every day.
- Risk minimisation: This is typical of products which you buy on the advice of some one else’ advice like medicines, or you continue using a brand because you are concerned about changing.
- Switching hassles: You would like to switch brands but you feel the cost of switching over is way too high and feel that the benefits are not yet big enough.
- Lack of a decent alternative: When you use Australia Post, are you doing so out of habit?
No loyalty/ Shifting loyalty/Switchers – These buyers demonstrate no brand loyalty at all and will switch without any concerns. The various loyalty segments emphasise the point that customer relationship segments and levels are not equal.