Page 211 - Electronic Commerce

Chapter 4

final stage called separation. A five-stage model of customer loyalty that is typical of these
models appears in Figure 4-5.

Level of intensity Learning
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Awareness Exploration Familiarity Commitment Separation
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FIGURE 4-5 Five stages of customer loyalty

This model shows the increase in intensity of the relationship as the customer moves
through the first four stages. Not all customers go through the full five stages; some stop
at a stage and continue the relationship at that level of intensity or terminate the
relationship at that point. Some customers in a particular stage might have contact with
the company online, while other customers in the same stage encounter the company
offline. Companies should strive for a consistent customer experience at a particular life-
cycle stage—that is, customers should experience the same level and quality of service
whether they encounter the company online or offline. Online and offline customer
contact points are often called touchpoints, and the goal of providing similar levels and
quality of service at all touchpoints is called touchpoint consistency.
As the figure shows, changes in the nature of the relationship do not occur suddenly
as a customer moves from one stage to the next. Within each stage, the level of intensity
changes gradually as the customer moves through that stage. The characteristics of the
five stages are outlined in the next sections.

• Awareness. Customers who recognize the name of the company or one of its
products are in the awareness stage of customer loyalty. They know that the
company or product exists, but have not had any interaction with the com-
pany. Advertising a brand or a company name is a common way for compa-
nies to achieve this level of relationship with potential customers.
• Exploration. In the exploration stage, potential customers learn more about
the company or its products. The potential customer might visit the com-
pany’s Web site to learn more, and the two parties will often communicate by
telephone or e-mail. A large amount of information interchange can occur
between the parties at this stage.
• Familiarity. Customers who have completed several transactions and are
aware of the company’s policies regarding returns, credits, and pricing flexi-
bility are in the familiarity stage of their relationship with the company.

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