Samsung’s loyalty challenge gives me a useful question to work with: why does a customer stay? Reliable products, connected devices, accessible service, rewards and consistent communication all offer possible answers. But the reasons underneath them matter. Repeat buying does not always mean affection.
Relationship marketing places the emphasis on an ongoing relationship rather than an isolated transaction (Grönroos, 1994). A loyalty programme should support that relationship. If the only reason someone returns is a discount, the programme may be buying another transaction without building much attachment (Dowling & Uncles, 1997).
A connected product ecosystem can make life easier. It can also make leaving feel expensive in time, effort and lost compatibility. Switching costs and network effects offer related but distinct ways to examine that value (Porter, 1985; Katz & Shapiro, 1985). It is worth asking exactly what becomes better as the system grows—and for whom.
Behaviour adds another layer. Status quo bias can favour staying with what is familiar, while the endowment effect can influence how people value what they already own (Samuelson & Zeckhauser, 1988; Kahneman, Knetsch & Thaler, 1991). Convenience, habit and attachment can coexist. A retention number alone does not tell us which is doing the work.
Consistent communication can help a brand build meaning, but the experience must back it up. Keller’s (2003) brand-equity model makes resonance a useful ambition: a relationship with depth, rather than recognition alone. Responsive, accessible service matters because an ordinary support encounter can strengthen or unravel that relationship (Zeithaml et al., 1996).
Samsung’s range across phones, televisions and appliances makes coherence particularly interesting. An omnichannel perspective asks how those encounters connect across products and service channels (Verhoef et al., 2015). The customer should not have to assemble the organisation’s internal pieces simply to get help.
Competition with Apple makes experience a meaningful area of differentiation. I find the language of “locking people in” slightly creepy, though. A beautifully connected system can feel reassuring until the customer experiences it as a barrier. Dick and Basu’s (1994) distinction between attitude and repeat behaviour is useful here: remaining with a brand and liking it are not interchangeable.
Customer lifetime value helps connect loyalty efforts to long-term economics (Kotler & Keller, 2012). The question is whether rewards, support and integration create value over the relationship, rather than merely generating activity. If I had a shot every time I quoted Kotler and Keller, this would be a very different article.
There is a limit to what any loyalty architecture can survive. My own enthusiasm for a Samsung flip phone did not survive an early failure and the service experience that followed. A disappointing purchase can interrupt even a promising relationship (Oliver, 1999).
So I would examine both the reasons people stay and the reasons they would willingly recommend the brand. Cohesion, service and communication should make the relationship worth choosing again. Loyalty is a much stronger proposition when leaving is possible and staying still feels right.
References.
- Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113.
- Dowling, G. R., & Uncles, M. (1997). Do customer loyalty programs really work? Sloan Management Review, 38(4), 71– 82.
- Grönroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Management Decision, 32(2), 4–20.
- Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic Perspectives, 5(1), 193–206.
- Katz, M. L., & Shapiro, C. (1985). Network externalities, competition, and compatibility. The American Economic Review, 75(3), 424–440.
- Keller, K. L. (2003). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Prentice Hall.
- Kotler, P., & Keller, K. L. (2012). Marketing Management (14th ed.). Pearson.
- Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(Special Issue), 33–44.
- Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
- Samuelson, W., & Zeckhauser, R. (1988). Status quo bias in decision making. Journal of Risk and Uncertainty, 1(1), 7– 59.
- Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174–181.
- Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46.
