Hierarchical Loyalty Scales

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.)

This email address is being protected from spambots. You need JavaScript enabled to view it. our Analytics and Modeling Team or an industry professional to learn more about whether this strategy would work well for your project.