Understanding how these differences impact marketing is crucial to the right approach to developing more customer loyalty in an online world.
Customer loyalty is a reflection of preference and choice. Rational loyalty reflects the rational decisions to choose one provider over another for a given purchase. This is best observed in share of wallet, which reflects the choices a consumer makes between options.
Emotional loyalty reflects the attachment a consumer has to a brand, regardless of their spending on that brand. This is expressed via word of mouth, referrals, and participation in engagement programs and activities.
Looking at value and loyalty separately shows why spending magnitude is a poor measure of loyalty: It is easy to conceive of a high-value, low-loyalty customer, and just as easy to visualize a low value, high loyalty customer.
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