When a person or consumer have an inner bond or feeling the said behavior can be associated with a
loyalty behavior.
In developing management teams over the years I have always zeroed in on the "
Loyalty Effect".For a customer, there are both the internal and the external factors that affect his/her relationship with a business. External factors may come in the form of "
AFFORDABILITY" for the product and or service and unique ability of the seller to find their product need. Normally, they have tried several areas on finding the product but they are unable to so they seek refuge for the said business in creating the ultimate experience they need. Another area that the new customer wants especially for online shoppers today is the
"ease" of finding the product and simple userability for them to navigate an e-commerce site for example.
While studying on a business planning class, the question was how does one meaure that the business will succeed?
My brain servers were suddenly having a high traffic volume as I can analytically come up with a lot of measurement ideas and tools. However, it comes down for a successful business to endure their has to be a very good rating on
"Loyalty Effect". Value is a perceived value when the customer places the order that the business offers. It can be inter related to price, performance, aesthetic value, feeedback, reputation, brand recognition, being trendy, awards, testimonials and even the association of the company with an industry community association or organization. This business has to be offerring something that the customer wants or needs.
Value I believe results from having a good
"brand" and much better than other similar companies offerring the same products and services. Yet, sometimes business owners tend to forget the magic rule 8:20 referrals. Word of mouth is a major influence today in an e-commerce driven marketplace. Customers are the ones creating a more high valuation for the products as they have this romantic personal and sentimental connection with the company or business.
When we started our vision focusing on the
"Youth" we have found out we are like keepers of histories, memories and life experiences. Customers were coming to us as they are involved in the selling relationship. Its' like when we dine at night going to the same restaurant for example, we have a high loyalty to the business than for a place we only go once is a while.
Feedback and criticsm should be very well entertain because only through this is the way customers are meaningful for the business to sustain and ultimately become more succesful. If we do not provide this important element in our business models we are losing investment opportunties from our loyal pool of customers.
In the case for example of
http://www.affordable-booksonline.com/ it offers comparable rare, out of print and antiquarian books. The loyalty effect rate experience between 6-8 out of 10 compared to other online independent retailers.
Through the support of the companies aggregrators, customers are able to find and access
Affordable Books on line in spite of the strict competition. Thus, it is extremely important that a business must provide the predictive value to be useful. Human behaviors and emotions are the hardest to predict most of the time. Some customers just want to try something new, they might have a personal problem at home, just lost a job, mad at their boss, recently divorced and or even looking for friendship or love.
In final, when we exercise loyalty effect, we need to make sure on the privacy and security of data and information for the customer.
No business does not involve a customer and because of the internet today, bars and expectations are raised on a daily basis. So if we create the value, personal touch and niche towards customer loyalty then a business will ultimately sustain itself.