Wednesday, August 4, 2010

Measuring Customer Loyalty

According to Aaker, there are several approaches to measuring customer loyalty, such as: behavioral measures, switching costs, measuring satisfaction, liking of the brand and commitment:

1. Behavior measures
Is a direct way to measure loyalty primarily to the behavior that is because habit is to consider the purchase of a truly done (actual purchase pattern).
There are three ways in measuring the behavior of Y can be used as follows:
a. Repurchase rates are measured against the percentage of consumer purchases of the same brand at next purchase.
b. Percent of purchase, measurement about brands that have been purchased as compared to other brands of a certain number of last purchases.
c. Number of brands purchased, the measurement of the percentage of consumers are using one brand, two or more brands.
2. Switching costs
Represents an approach to measure loyalty by measuring the difference in sacrifice or risk of failure, the energy costs incurred by the consumer and physical because he chose an alternative. If large, the switching costs a consumer would be more cautious in moving to another brand because it faced the risk of failure is also large, and vice versa, hence the small switching costs a consumer would be easier in a switch to another brand because it faced little risk of failure also. Thus, this approach is used to measure the loyalty of a consumer.
3. Measuring satisfaction
Approach in measuring loyalty by measuring the satisfaction derived from a particular brand. only after using a certain brand and the consumers are satisfied or you feel benefits under expectations, this would cause him to stop using other brands and decide to purchase the your product, which means it has been created customer loyalty towards a brand.
4. Liking of the brand
This approach is measured through the level of consumer preference towards the brand in general. This can be measured through the emergence of preferences to a good brand like in enterprises as a manufacturer, perception and brand attributes in question, as well as on confidence in the brand. Consumers say the brand loyal when purchasing is not due to special offers, but because consumers believe in the quality of the brand.
5. Commitment
This approach is measured from the consumer's commitment to a particular brand. Customer loyalty can arise when there is trust from consumers with the brand so there is communication and interaction among consumers is to discuss, and even recommend others by explaining why he was buying and using these products. If the match with what is expected, it will arise consumer loyalty towards a brand.
By knowing the loyalty of these measurements are expected level of consumer loyalty can be seen more clearly. Next is the efforts to defend it.

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