Do your customers return to you because no reasonable alternative exist, or because the cost of switching would be too high? 

If you answered yes to either of these questions, than you are holding your customers hostage.  Don’t confuse repeat business with customer loyalty.  A loyal customer is someone that continues to do business with you because of an established or perceived relationship.  Price is not the basis for a relationship. Companies are spending more time and effort developing loyal customers because loyalty is hard to replicate.  The competition can match your price, your product features, and your delivery options; loyalty is a natural barrier to entry in the marketplace.   Much of the recent research revolves around how to measure, impact and foster customer loyalty.  A sampling of that research is listed below.  Please login or register to view the full contents of the database.

Do Reward Programs Affect Customer Loyalty

68% of reward program members will recommend the brand within a year.

Source:  COLLOQUY

Date:  May 2009

Website Published:  www.thewisemarketer.com

On-line branding Results in Slight Increase in Customer Loyalty

Consumers feel more favorable towards a brand (1.6%) if they've been exposed to on-line brand advertising.

Source:  Dynamic Logic

Date:  February 2009

Website Published: www.dynamiclogic.com 

Loyalty Reward Programs Increase Purchase Frequency

The frequency lift as a result of membership in an airlines loyalty program ranges from 1% to 12%

Source:  Journal of Marketing

Date:  January 2009

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