In part one of our January Podcast Takeover, Diane Hartley is joined by Barry Kirk, Principal Consultant of Chapman & Co. Leadership Institute. He deep dives into creating customer loyalty, client engagement, and how loyalty differs depending on the approach you choose to take. - [01:07] Introduction to Creating Customer Loyalty - [03:00] Retention in Luxury Real Estate - [05:32] Client Engagement in the Upper Tier - [11:14] Four Different Types of Customer Loyalty - [22:09] How Loyalty Can Impact Our Choices - [30:38] Being Aware Allows You to Anticipate - [34:07] How Tribal Loyalty Is Impacting the Luxury Market
Four Different Types of Loyalty:
Barry explains that there are four different types of loyalty that can be split into two different categories: transactional loyalty and relational loyalty. Within transactional loyalty, you’ll find two specific types of loyalty. Mercenary loyalty centers around the possibility of someone else being able to deliver a similar kind of transaction, and is based more on the end result itself than the service received. With inertia loyalty, clients tend to remain loyal to your brand simply out of convenience, often because they don’t have more than one option to choose from. In this instance, think of the type of relationship you may have with your cable company, and that more or less categorizes what inertia loyalty is all about.
Within relational loyalty, there are also two specific types of loyalty that Barry discusses. True loyalty centers around the experience you’re able to deliver to your clients, and often involves one going above and beyond in the service that was offered. The final type of loyalty is the one that is often the most difficult to earn. Cult loyalty is based on the value alignment clients are able to connect with throughout the purchase, and this idea is reinforced when they see other people also make similar purchases. This social proof keeps clients wanting to come back for more, mainly because of the values espoused by the brand and the connection they feel to the remainder of the client base.
The Next Generation of Homeowners:
Because of the prevalence of social media, millennials are a generation raised on tribal identity. Growing up, they were able to utilize a variety of social media sites and quickly find their niche tribe in the process.
When it comes to doing business, millennials are seemingly less price-conscious (despite struggling slightly more financially), and more connected to the values they associate with different brands. Chapman & Co. Leadership Institute ran a study on whether the values espoused by a business actually influence purchasing behavior, and 55% of respondents agreed that those values did in fact influence their purchasing behavior. Among those who identify themselves as brand loyal, it’s significantly more likely that the values of a particular business or professional drive their purchasing decisions as a result.
Topics Covered and Questions You’ll Uncover During this Episode:
Resources Mentioned Within Episode: