Customer Success | 5 MIN READ

Loyalty Loop – What It Means, Why It Matters, and More

What is a customer loyalty loop? What are some of its benefits and why should you deploy it in your system? Read on to unlock your answers.

Simran Mohanty
Aug 4, 2021

Loyalty-Loop

Loyalty Loop

The pivotal goal of any brand is to capture their prospects, convert them into a customer and ultimately into a brand advocate. The customer today has no dearth of options to choose from. While the shopping process has become more complex and thought through, ensuring maximum loyalty is the key that everyone’s looking for to lock in potential customers. With the world shrinking into a smaller place, staying on the edge of technology and powering through your competitions, makes or breaks the deal.

The most efficient way to see how customers purchase today is by looking at the loyalty loop. Now, comes the question – what is a customer loyalty loop and why is it needed by us in today’s scenario? Here, this blog will walk you through the ins and outs of the loyalty loop. Without any further ado, let’s get started.

Table of Contents

  1. What is a Loyalty Loop
  2. Stages of a Loyalty Loop
  3. Benefits of Loyalty Loop

What is a Loyalty Loop?

The customer loyalty loop is a concept that portrays how customers decide what they wish to purchase and whether or not they wish to stick to their decision. Simply put, the loop recognizes that once a customer purchases an item, they constantly reevaluate whether buying the product was the right thing to do, should they recommend this to others, will they be purchasing the same product again? To understand the loyalty loop better, it has been divided into six stages. Let us get to that now.

Stages of Loyalty Loop

Stages of Loyalty Loop
Source: fifteen

Consider

The first stage of the loyalty loop is the ‘consider’ stage. As the name suggests, the customer is now all set to consider a certain product or service. All she is doing now is considering the options that fit her requirements. For this, they may start with knowing the major competing brands for her fit.

Evaluate

The second stage of the loyalty loop is the ‘Evaluate’ stage. As the name suggests, this is the phase where the customer tends to evaluate on what are the best products and services that fit their requirements. Once they have picked a few brands to buy from, they will then rely on the recommendations from their friends and family to decide which one to go with. Additionally, they might read online reviews and strike off the ones that have more cons than pros.

Buy

The third stage of the loyalty loop is the ‘Buy’ stage. Now, this is almost self-explanatory. Once the customer has evaluated and decided to make a purchase. The next step here is to buy a particular product or service.

Enjoy

Now, the fourth stage of the loyalty loop is the ‘Enjoy’ stage. This simply means, if the customer has had a positive experience with a brand, they will want to enjoy the process and if possible, repurchase from the same brand. This can happen in a number of situations. Say, the customer service was really proactive, or, the website was pretty seamless to navigate and user-friendly, or, the quality of the product was in line with the price paid for.

Advocate

From the fourth stage where the customer enjoys your product and services, there is a fair chance that they might want to turn into a brand advocate. In simple words, there is a possibility that they would go about their relatives and friends and recommend your product. It can also happen that they would not take a backseat from posting a sweet testimony on the social channel as well. Most of these brand advocates are the repeating customers and they are also the ones who stick around with your brand for a longer time.

Bond

This calls for the sixth as well as the last stage in the loyalty loop. As the name suggests, this is where the customer wishes to bond with you, finally. If everything goes on to be well and good, the customer is more likely to bond and trust the brand with no room for second thoughts. A well-defined bond is something that will stay with you for the rest of your life.

Benefits of Loyalty Loop

  1. It is super helpful for the management of the ongoing customer experience. Simply put, this loop allows you to garner data and picture an accurate stance of the customer’s position within the model at a given period of time. You can know whether the customer is considering, evaluating, or buying without any room for confusion.
  2. It passes on a consistent chain of messages to the customer over the duration of your relationship. You can see this as a glimpse of how the customer views you. Further, this validates and verifies their decision by sticking around with your brand.
  3. Over and above, this approach generates awareness, but it also created a powerfully visual and talk-worthy story shared online. When you have this in place, it won’t take much to transform buyers into long-term brand advocates – which is your purpose.

Parting Thoughts

Every business must track its customer’s journey in and out. Are your customers loving your products and services? Do they want to stick around with you for long? Are you giving them the best of customer service that they can trust? Well, if that is what you have been wondering off-late, this blog has walked you through the ‘nitty-gritty’ of a customer loyalty loop and its various benefits. Deploy this in your system, and you will soon start to see a positive difference.

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Originally Published August 4th, 2021, Updated August 4th, 2021

Simran Mohanty

Simran hails from the content marketing backdrop with extensive knowledge in blogs, articles, and technical whitepapers in the non-fictional domain. She uses her 'gift of the gab' to explore new possibilities on her way and to make an exquisite impact on her readers. In her spare time, she likes to read journals on artificial intelligence or play with her cute kittens.

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