Advocacy enables organizatins to link the impact of purchase experience and future intent, brand impression and favorability, recommendation, and positive/negative imformal communicaiton (offline and online word-of-mouth) with downstream customer behavior
1. Leveraging Informal Communication to
Optimize Customer Loyalty Behavior
Abstract
Neural, informal communication on behalf of a preferred brand or vendor can have significant, far-reach-
ing impact. If the communication behavior is positive, the resulting return on customer (ROC) effect can
create a corps of advocates who can readily attract others to the brand or vendor. When communication is
negative, this behavior reflects indifference, and even sabotage, where the brand or supplier is concerned.
Author
Strengthening Bonds and Building We identify these relationships at four levels, Michael Lowenstein, CMC
Relationships: A Quick Customer based on the type and degree of involvement and Vice President, Senior Consultant
Commitment ‘How To’ personal ‘investment’: Harris Interactive Loyalty
Word-of-mouth. Commitment. Advocacy. These Acquaintance – Relationship that is fairly discon- mlowenstein@harrisinteractive.com
are words, as well as concepts, that are on the lips nected, shallow and impersonal, expecting little
and minds of virtually every marketer and cus-
tomer market researcher today. Achieving the Contractual – Relationship based on ability to
highest customer loyalty behavior is the desired provide rational, tangible, and functional ele-
‘holy grail’; and the reality is that it’s remarkably ments of value
easy to reach. You just have to know the code. Romance – Relationship characterized by empha-
The ‘code’ is quite straightforward. It consists of sis on emotional (trust, assurance, support, com-
defining and understanding the emotional and munication) elements of value
rational bonds which make up a supplier’s value Commitment – Relationship which combines
proposition, as well as defining and understand- both rational and emotional elements of cus-
ing a customer’s reasons, conscious and uncon- tomer value
scious, for having a relationship with that suppli-
So, the model can help identify the relative
er. The emotional bonding elements are based on
impact of each relationship driver: corporate
trust and a customer’s sense of personal assurance
image and equity, policies and procedures regard-
in purchasing and using a company’s products or
ing customer transactions, service delivery levels
support. It is very much a function of touch
and breadth of coverage, product performance
point process effectiveness and the strategic, and
(quality-based elements such as accuracy, reliabil-
tactical, result of service experiences. Rational, or
ity, completeness, timeliness, etc.) and costs, both
tangible, elements are those things that we associ-
actual and relative to competition. The sum of
ate with cost and functionality: original price,
understanding relationship components comes
cost to maintain, accuracy, completeness, reliabil-
back to trust and satisfaction conditions, leading
ity, and the like.
to commitment on a rational and emotional
The conceptual framework of our commitment basis. Ultimately, as can be seen in the following
model is that these emotional and rational bonds graphic , customer relationship, through com-
are the foundation of customer relationships. mitment, leads directly to desired customer mar-
Customer relationships with suppliers have a ketplace behavior.
great deal in common with human relationships.
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