Customer Loyalty Funnel: Turning Customers into Brand Advocates

What is the term used for the stages a customer goes through where a retailer can use loyalty programs to offer rewards and incentives?

The term used for the stages a customer goes through where a retailer can use loyalty programs to offer rewards and incentives is called the customer loyalty funnel.

The customer loyalty funnel refers to the stages that a customer goes through in their journey with a brand, starting from awareness and ending with advocacy. It is a strategic approach that retailers use to build strong relationships with customers and turn them into brand advocates.

The customer loyalty funnel consists of several key stages:

• Awareness: This is the stage where customers first become aware of the brand and its products or services.
• Consideration: Customers start considering making a purchase from the brand and compare it with other options available in the market.
• Purchase: Customers make their first purchase from the brand, showing interest and trust in its offerings.
• Loyalty: Customers continue to purchase from the brand repeatedly, showing loyalty and satisfaction with the products or services.
• Advocacy: Customers become advocates for the brand, sharing positive experiences with others and recommending the brand to their friends and family.

Throughout the customer loyalty funnel, retailers can use various loyalty programs, such as reward points, exclusive discounts, and personalized offers, to incentivize customers to move smoothly through the stages and ultimately become loyal advocates for the brand.