The Beatles were onto something with the song “Can’t Buy Me Love.” What they missed in the song was that you also can’t buy loyalty. True customer loyalty can’t be bought or bribed.
Customer loyalty is the purchase behavior of a customer. It’s the frequency with which they repurchase, it’s the new business that they deliver through word of mouth referrals and it’s the total that they spend over their lifetime as a consumer.
When it comes to the behavior of loyal customers, there are no short cuts. Having a “loyalty program” or a discount card won’t in itself cause customers to behave loyally. The only way of impacting purchase behavior is by improving total customer satisfaction.
There is a strong link between purchase behavior and customer satisfaction. Satisfied customers deliver a higher wallet share, make more positive referrals, and are more likely to be retained.
To truly influence the behavior of consumers, businesses must first understand how satisfied their customers are. Satisfaction depends on the customer’s perspective and the context of the business. As a result it will vary from customer to customer and cannot be directly measured. There are a set of factors that influence customer satisfaction such as:
- Overall satisfaction
- Satisfaction relative to expectations – expectations will be very different at Pebble Beach versus a 9 hole executive
- Satisfaction relative to your ideal golf course – golfers may have a different perception of what an ideal course is to them, maybe it’s Pebble Beach, or maybe it’s a course that they can play 18 holes in 3 hours
After understanding how customers perceive your course on these subjective satisfaction factors, the next step is understanding which of these factors have a greater influence on causing customers to behave loyally.