Glossary

Customer loyalty

Keeping customers loyal that have already purchased products or services from a company and encourage them to buy again from this company is called customer loyalty. Customer loyalty is existent when the customer expresses his loyalty towards a company, brand or product and sticks to it in the long term without switching to the competition.

Businesses can choose from a range of methods to enhance customer loyalty, e.g. data base marketing, customer bonus cards, price discounts, small free gifts or club memberships. By using customer surveys these instruments of customer loyalty can be optimised. Customer satisfaction is a prerequisite for customer loyalty whereas a high level of loyalty is a prerequisite for realising the customer lifetime value.