Customer Loyalty 2.0, Articles by Bob E. Haye: Good Read

Here are 3 great articles by Bob E. Hayes on Customer Loyalty in the current world

• Customer Loyalty 2.0, Part 1: Measurement and Meaning of Customer Loyalty
• Customer Loyalty 2.0, Part 2: Advocacy, Purchasing and Defection Loyalty
• Customer Loyalty 2.0, Part 3: Reliability of Loyalty Indices
• Customer Loyalty 2.0, Part 4: Advocacy Loyalty and Purchasing Loyalty
• Customer Loyalty 2.0, Part 5: Drivers of Advocacy Loyalty and Purchasing Loyalty
  

Useful stuff copied from these articles:

Whats Customer Loyalty 2.0?

While the quality of the customer loyalty survey process has seen a
great deal of improvement in business settings, the quality of the
measurement and meaning of customer loyalty has not kept pace. Our
latest research on customer loyalty, however, tries to narrow this gap.
Customer Loyalty 2.0 represents this advancement in the measurement and meaning of customer loyalty.

Objective measures of customer loyalty:

• Number of referrals:
  
• Word of mouth/Word of mouse
• Purchase again
• Purchase different products
• Increase purchase size
• Customer retention/defection rates

Commonly used customer loyalty survey questions include the following items:

• Overall satisfaction
• Likelihood to choose again for the first time
• Likelihood to recommend
• Likelihood to continue purchasing same products/services
• Likelihood to purchase different products/services
• Likelihood to increase frequency of purchasing
• Likelihood to switch to a different provider

Key Factors to consider for loyalty scores:
1) Satisfaction
2) Recommendation
3) Purchase again

Loyalty Indices

• Advocacy Loyalty Index (ALI): The ALI measures the extent to which customers are advocates of the company. This index is calculated by averaging the responses to the following questions: Overall Satisfaction, Choose Again, Recommend, Purchase Same.
• Purchasing Loyalty Index (PLI): The PLI measures the extent to which customers are likely to increase their purchasing behavior. This index is calculated by averaging the responses to the following questions: Purchase Different, Purchase Increase, Purchase Frequency (only for PC Study).
• Defection Loyalty Index: The DLI measures the degree to which customers are likely to defect. This index is the score from the single item: Likelihood to switch to another provider.