By considering behavioural measures alone, businesses can gain false confidence in customer loyalty.
When measuring loyalty, customer experience leaders should collect and analyse both behavioural and attitudinal measures. By doing so, brands can identify the probable reasons for consumer churn and measure the financial costs and benefits of providing improved customer experience.
The author highlights the risk of not factoring in attitudinal measures as they give insights into consumer spending. Only calculating behavioural measures can bring a sense of “false confidence”, in which brands won’t be able to gauge whether repeat purchases are being driven by loyalty or factors like habit, convenience, lowest price or limited competitive options.
Attitudinal measures are effective for understanding customer perception and factors affecting customer churn. These measures collect data through Voice-of-the-Customer surveys that check for customer satisfaction, likelihood to repurchase and willingness to recommend.
[3 minute read]