The types of loyalty engagement strategies that a brand may look to apply in order to facilitate a healthy customer-to-brand relationship.

1. 4D Loyalty Framework
Loyalty is not monolithic

2. True Loyalty
Optimise the
experience
Cult Loyalty
Optimise the
tribe
Inertia Loyalty
Optimise the barrier
to exit
Mercenary
Loyalty
Optimise the
incentive
Passive Active
Relational
Transactional

3. Brand works to develop customer intimacy
Brand experience is extremely important
Brand focus is on making the entire experience engaging
Brand engagement;
• Refined member life cycle
• Customer segmentation
• Data driven communication
• Meaningful personalisation
• Surprise-and-Delight users
True Loyalty
Optimise the
experience
“My connection to
the brand goes
beyond the offer”

4. The strongest expression of customer and brand relationship
Connection is deeper
Members view the brand as an extension of their self-concepts
Members feel a strong community sentiment amongst each
other
Members reinforce each other’s brand engagement
Cult Loyalty
Optimise the
tribe
“The brand reflects
my personal
identity”

5. Works on reinforcing the barrier to exit
People feel like the effort to switch brands is too demanding
Stickiness is engendered through subscriptions and contracts
The weakness with this strategy is that the customer is merely
awaiting a switching opportunity
“I’m only here
because it’s too
much trouble going
elsewhere”
Inertia Loyalty
Optimise the barrier
to exit

6. Primarily relies on activating the drive to acquire
Consumers are rewarded with money for favoured engagement
behaviours
Limited by;
• A focus on transaction, not relationship building
• Activates our basic drives to acquire and defend
• Relies on habitual behaviours, over considered choices
“I’m loyal because I
get paid to be”
Mercenary
Loyalty
Optimise the
incentive

7. Which is the best for your brand?

8. Multi-Loyalty Strategy
True Loyalty
Optimise the
experience
Mercenary
Loyalty
Optimise the
incentive
Cult Loyalty
Optimise the
tribe

9. Reference

10. Reference