Week 11: Promote

Question 1

Explain the journey to loyalty

Answer 1

• Customers are loyal whenever they consistently receive positive experiences

Question 2

Explain the difference between conscious and unconscious loyalty

Answer 2

• Conscious loyalty is based on a deliberate, rational decision to remain loyal to a brand or company
• Unconscious loyalty is driven by automatic or
  habitual behavior and may not involve a deliberate
  decision at all.

E.g. apostles are consciously loyal and loyalist are unconsciously loyal.

Question 3

Explain moral courage

Answer 3

• If in an unethical and hostage situation, apply moral courage to act ethically and stand up for what is right
• Involve resisting pressures to conform, disobeying immoral orders, speaking out against injustice or protecting others from harm

Question 4

Identify the 3 steps in achieving consistent positive experience

Answer 4

• Step 1: Confidence - Confidence grows through consistent positive experiences that establish trust and reliability in a brand. Customers and employees come to expect and rely on this high level of quality in their interactions.
• Step 2: Ownership - Ownership develops when customers and employees form a personal connection and invest in a brand’s success. They become emotionally invested, advocate for it, provide feedback, and contribute positively to its growth.
• Step 3: Passion - Passion arises from genuine enthusiasm for a brand’s
  mission, creating a loyal community of advocates. This emotional connection drives people to share their experiences and support the brand wholeheartedly.

Question 5

Define moments of truth

Answer 5

• Any interaction or point of contact between a customer and a company’s employee or representative, during which the customer forms or changes their perception of the company based on the quality of service they receive.
• These moments are critical because they have the potential to make a lasting impression on the customer and determine their overall satisfaction and loyalty to the company.

Question 6

Explain the 3 moments

Answer 6

• Misery: An interaction that disappoints customers, creating negative impressions and damaging
  loyalty
• Mediocrity: A neutral or average interaction that neither impresses nor disappoints customers
• Magic: A positive interaction that
  exceeds customer expectations,
  leaving a lasting impression of
  delight

Question 7

Explain the relevance of survival analysis to customer retention

Answer 7

• Provides information about how many customers have been retained for a certain amount of time
• Gives the probability of a customer retaining up to the tenure. It is the cumulative probability that the event has not occurred.
• “Event” can be defined as a customer leaving the company or stopping their subscription.
• x-axis: sample/time
• y-axis: metric (able to analyse the impact of various customer characteristics)
• At Time=0 (baseline, or the start of the study), all participants are at risk and the survival probability is 1 (or 100%) i.e., all participants are at risk and the proability of retaining is 1 (100%)