Categorizing a customer’s level of brand attachment and engagement allows companies to better leverage their investments in maintaining loyal consumers and/or developing new ones and thereby increasing market share.
That’s why Morpace’s Analytics and Modeling Team has developed a proprietary process of using Hierarchical Loyalty Scales. This strategy allows companies to create a more complete profile of consumer behavioral and attitudinal attachment, as well as engagement with a brand.
The process our professionals have perfected is essentially a step process that is achieved using measurement algorithms from item response theory. These algorithms are used to identify whether a subset of attitudinal and behavioral measures meet established psychometric criteria for an ordered, one-dimensional scale.
A scoring algorithm is established to reveal where consumers fall on the steps, or scale. The higher a consumer or segment of consumers falls on the scale, the greater the degree of attachment or engagement with a brand.
But the depth of this solution goes even further. Our professionals have developed hierarchical loyalty scales for a number of different product segments, including:
- Automotive (i.e. primary vehicle brand)
- Financial Services (primary bank)
- Retail (primary home improvement retailer, department store, restaurant, etc.)