Emotional Loyalty - Airline, Hotel, and Retail
Delivered November 6, 2019. Contributor: Joseph M.
To identify marketplace examples of loyalty programs in the airline, hotel, and retail industries that tap into emotional loyalty.
The global loyalty management market was valued at
in 2018 and the market is expected to grow at a CAGR of
Traditionally, customer loyalty focuses on
offering incentives to customers
in exchange for loyalty points or product. However, this transactional model of customer loyalty does not cover the customers who are loyal because of
the emotional ties they have
to the brand.
A study by
reported that customers that have high emotional engagement are more likely to have strong brand affinity as compared to those that have low emotional engagement.
The study reported that
highly emotional consumer
s buy their favorite brands
of the time when they need a specific item as compared to
for less emotional people.
Emotionally engaged customers
have more expectations
of the brands they are loyal to including two-way interaction, real-time and
varied interaction opportunities
, and differentiated shopping experiences.
three main types
of customer loyalty:
which is loyalty based on quantitative metrics like
points and incentives
which is loyalty that is based on
purchasing behavior and convenience
instead of preference, sale, or emotional ties.
where customers do not buy as a result of incentives but rather as a result of
customer service, storytelling, trust
, and philanthropy.
An example of a brand that taps into emotional loyalty is
From the beginning, the company built a brand and business model on the
foundation of giving
where for every pair of shoe purchased, the company d
onated a pair to a child
Consequently, even though TOMS Shoes does not sell the cheapest shoes,
consumers are committed to spending
the additional money because of what the company gives back to the society.
create emotional ties
with socially-conscious brands like in the case of TOMS Shoes, they are
more likely to visit their store and are willing to spend on average
Only the project owner can select the next research path.
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