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Is Customer Loyalty an element in Foundation®? |
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All of the foundations for product loyalty are there except for exit barriers. That is, customers develop loyalty because the design is good, they know the product, and it is easy for them to interact with the company (take delivery, talk to customer support, etc. -- what we are calling "accessibility." However, in most branding/loyalty situations, there is also some cost to the customer to switch brands, even if those costs are only psychological (that is, habit). Foundation® has no switching costs.
As an aside, it would be trivial to build in switching costs. We leave them out because we want students to focus on the elements that create loyalty in the first place. These elements are scored in the monthly customer survey (like the December Customer Survey in The Foundation® FastTrack). If I consistently score 40, and my competitors score 30, I will consistently generate higher demand.
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