The Psychology of Loyalty
What customers say they want is often very different to what they actually want. This is known as the “Say-Do” gap. Customers normally make decisions on subconscious emotional factors, although they will say that they make decisions based on rational calculations. This is most prevalent in B2C sales but still holds true in B2B.
“The essential difference between emotion and reason is that, while reason leads to conclusions, emotion leads to action.” Calne D.
So we want to create emotional connections that will lead to action. That is the “buy” button. To do this we need to understand our customers better and look at what their emotional connection is to the brand.
There are two types of loyalty – transactional and emotional. These are based on either subconscious or conscious emotion connectors in the brain. Transactional loyalty might be because of price, convenience or lack of competition, whereas emotional loyalty might be because of product quality, customer service, the experience or brand message.
We are all very used to segmenting our customers based on transactional factors such as spend, frequency and demographics - but could you segment your customers based on their emotional connection to the brand?