Segmenting by Loyalty Levels

Loyalty/Relationship Segments.

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s