Customer Loyalty Loop by Noah Fleming

Most companies don’t truly understand what they need to do to keep a customer. Noah Fleming does. Since 2005, he has worked with hundreds of companies and thousands of individuals. More importantly, he knows how to apply efforts and methods into your business, today.

The Customer Loyalty Loop looks at the psychology of customer experience and what you can do to influence your customer to continue to do business with you over and over again.

Background of the Brain

There are many cognitive biases that affect the way we rationalise, analyse, and process information. The first one is Anchoring bias. This is when one number or fact anchors the context of a specific point. You see this in ads that say, “normally this sells for $89 but today only it’s $15!” The first price, $89, is used as an anchor.

Another bias is Availability bias. This means that if something is readily available to us, we are more likely to let it influence our narrative. For example, if a plane crash is popular on the news, we assign more influence and importance to plane crashes in our thoughts.

A third cognitive bias is risk aversion. This is when we use fear of loss as a mode of motivation and we do whatever it takes to avoid a perceived risk. There are, of course, many other biases that affect our thinking. Critical, rational, logical thinking requires a lot of effort, and our brains frankly don’t like exerting effort. Our perceptions and narratives are not based on rationality, but instead biases that lead us toward simpler, easier decision making.

Our brain is also unreliable when it comes to memories. Our memories can be influenced by stories we hear, emotions we feel, and frames we give it. Businesses should focus on creating the right customer memory, which begins long before the sale is made and continues as the customer does business with you.

The Customer Loyalty Loop

There are four stages of the Customer Loyalty Loop:

Imagination Before Persuasion: the beginning of the customer experience

Conversion Without Coercion: actually getting the sale