When a customer relationship works, then you get loyalty. Loyalty is actually the aim of customer policy; to win a customer and keep them , without any marketing expenditure. But this isn’t the end of the story. Loyalty has many sides, each of which have a different financial significance.
- Robustness – how much stress can a customer relationship withstand before the customer switches to a competitor? Problems are normal and don’t lead to customers moving away, unless they exceed a certain level of stress.
- Activation – customer experience can fizzle out in the dullness of everyday life. This effect can be passive or even trigger an impulse to do something themselves or talk about it with others.
- Potential – how much business does this loyalty count for? How much is it growing? How much does the customer contribute to this growth? What share of wallet does the business have for the customer?
We can call this the RAP index. The three sides are not however independent of each other. One promotes the next. The order is however important. When things go wrong, it is firstly to do with driving activation, before robustness has been developed. One wrong word can then lead to a loss of control. This can also happen with potential, but this is inconveniently negative.