Brand Value · Loyalty · Component
The lock-in
What holds customers that is not preference — contracts, integration, habit — because only preference is brand value.
The deliverable
What it is
Retention has several sources and only one of them is brand value. Contracts, integration cost, habit and absence of an alternative all produce the same number and none of them survives a competitor removing the friction.
Separating them is uncomfortable because it usually reduces the loyalty figure substantially, which is exactly why it is worth doing.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The sources
What holds each customer, other than preference.
3 attributes: Lock-in type · Strength · Applies to
LearnThe adjusted loyalty
Retention with lock-in removed.
3 attributes: Reported retention · Adjusted retention · Confidence
LearnThe expiry
When the lock-in ends.
3 attributes: Lock-in ends · Preference at that point · Priority
Learn
Customers with weak preference and lock-in expiring in the same quarter are a forecastable loss, not a surprise.
The other components in loyalty
The behaviour
Repeat purchase, retention and share of category spend — what customers actually do, before asking what they think.
LearnThe attitude
Relative preference, and what would survive a better offer — the half of loyalty that predicts what happens when the market changes.
Learn