"FE" - FREQUENCY + ENGAGEMENT
I use the word iron, for a reason. The chemical symbol for Iron is 'Fe', and these two letters are also the initials behind the underlying ingredients of long-term loyalty. Frequency + Engagement. Iron clad also means it is defensible, something that can last the test of time.
Whilst building iron-clad loyalty is the goal, not all customers want to be loyal. So well planned loyalty strategies are about optimisation, getting the most out of the casual and protecting the most valuable customers.
Frequency is achieved by having customers who are behaviourally loyal. They are demonstrating loyalty to your business, through repeated purchase. But are they captive? Will they switch allegiance when a better offer comes along?
Engagement is created by happy customers who love what you do or sell. Often measured by net promoter score, it is about having customer experiences that go beyond expectation. In other words it is about creating a relationship between customers and brands that feels more like the relationship between best friends.
Engagement alone doesn't mean you're making money, but together with frequency of purchase is when you start to build a long-term defensible position.
Both frequency and engagement are equally important. Two side of the same coin.
At CX360 we help organisations looking for ways to transform customer experience and build long-term sustainable loyalty