The Loyalty Building Cycle

Building customer loyalty is a continuing process. It begins with a quantitative measurement of customer data which produces customer loyalty profiles. These profiles are analyzed to determine the actions required to improve loyalty. When the measure/analyze/act cycle is complete, it starts again with new data that begins to measure results of the loyalty initiatives.

The first phase in the process of building customer loyalty is measuring customer characteristics. Loyalty Builders uses its proprietary mathematical model, a multiple criteria decision process, to segment the customer database into identifiable sub populations or "affinity groups." Our model produces quantitative micro information on individual customers and a macro measurement of the business as a whole or of divisions within the business. We deliver a database table describing the loyalty characteristics and rankings of each customer.

The next step in the cycle is analyzing group characteristics. Loyalty Builders supplies an easy-to-use natural language query tool to interpret the data from the first phase. Along with the query tool, Loyalty Builders delivers a dictionary and a set of pre-built queries, all customized to each client's data.

The third phase of the cycle is acting on the results of the analysis to increase customer loyalty. Our client companies can take the deliverables from the first two steps and integrate them into their existing programs or plan new initiatives. The process can then be repeated to assess the success of these loyalty initiatives.