Loyalty Loop

What is a Loyalty Loop?

The Loyalty Loop, also called Customer Loyalty Loop, is a concept that illustrates how people decide what they should purchase and how they decide whether or not to continue making that purchase in the future. 

Basically, the Loyalty Loop recognizes that once a customer buys a product from a business, they reevaluate whether or not the product fits their needs, whether the product is good enough to recommend to friends and family, and consequently, whether or not they should buy the product again. 

Stages of the Loyalty Loop

There are six stages in the Loyalty Loop:

  1. Consider: This is the first stage of the Loyalty Loop, where the customer is considering different products and services from different brands. They look for the ones that match their requirements and identify a few brands that tick all the boxes.

  1. Evaluate: In the second stage of the Loyalty Loop, the customer evaluates the best products from those that they considered in the first stage. They weigh their options based on personal research, recommendations from friends and family, customer reviews online, etc.

  1. Buy: At the third stage of the Loyalty Loop, the customer makes the decision to purchase a product, based on the ones they evaluated in the second stage.

  1. Enjoy: At the fourth stage of the Loyalty Loop, the customer experiences the product. Preferably, the customer enjoys the product, is satisfied with the customer service, and finds the cost reasonable, they associate the brand with positive emotion.

  1. Advocate: At this stage, the customer becomes an advocate for your product, as a result of the positive experience they had with your product in the previous stage. They would become the reason another customer chooses your product in the second stage (the Evaluate stage), where they might recommend your product to them, or leave a positive review online.

  1. Bond: The sixth and final stage of the Loyalty Loop is the Bond stage, where the customer forges a bond with your brand, thanks to the positive experience they had with your product. The more they bond with you, the more they trust you, and the more they stay with you as a valuable customer.

The Loyalty Loop as an Improvement to The Marketing Funnel

Building loyalty is definitely a worthwhile investment when it comes to running a business. Instead of merely luring in customers with colorful content and shiny badges, going the Loyalty Loop way makes for a faster marketing method.

While the Marketing Funnel takes the customer from awareness to purchase and ends there, the Loyalty Loop goes the extra mile in making sure that the customer turns into an advocate of the product they purchased.

However, the Loyalty Loop doesn’t have much to offer when it comes to new leads who have not yet made any purchases from you. 

That’s why the Marketing Funnel and the Loyalty Loop can work hand-in-hand to ensure the best results, the former to attract new customers and the latter to retain them for the long run.