Study Note: Customer Engagement, Loyalty, and Bonding Strategies
1. Customer Engagement through Social Media (Class Activity + Examples)
Brands Studied: Duolingo & Dove
Duolingo is a great example of a brand using humour, consistency, and platform-native content to drive engagement. Their TikTok posts, especially with the Duolingo Owl as a chaotic, funny character, regularly go viral. Instead of traditional educational content, they use trending memes, funny voiceovers, and even poke fun at the "pushy" nature of their notification reminders. This makes them feel less like a brand and more like a relatable, entertaining presence on users' feeds.
Dove, in contrast, takes a more emotional and purpose-driven approach to engagement. Through campaigns like #RealBeauty and the Dove Self-Esteem Project, the brand focuses on social issues such as body image, self-confidence, and digital distortion. They encourage people to share their own stories, celebrate diversity, and engage in real conversations about beauty standards. Dove’s content often sparks genuine emotional reactions and community discussion.
Why These Are Effective:
Duolingo’s strength lies in humour and relatability, making language learning feel lighthearted and accessible.
Dove builds emotional resonance and trust by standing for something bigger than just selling products.
My Opinion: I believe both approaches work because they go beyond product promotion. Engagement is strongest when a brand shows personality (Duolingo) or purpose (Dove), creating two-way interactions that feel genuine.
2. Zone of Tolerance (Yap & Sweeney, 2007)
Reference: Yap, K. B. and Sweeney, J. C. (2007) "Zone-of-tolerance moderates the service quality–outcome relationship", Journal of Services Marketing, 21(2), pp. 137–148.
Concept Summary: The Zone of Tolerance (ZOT) refers to the range of service performance a customer considers acceptable. It lies between:
Desired Service Level – the ideal experience a customer hopes for
Adequate Service Level – the minimum they are willing to accept
Anything within this zone is usually satisfactory. Services that fall below the adequate level cause dissatisfaction, while those exceeding the desired level might delight customers—but not always enough to justify the cost of overdelivery.
Key Arguments from the Paper:
The relationship between service quality and outcomes (like satisfaction or loyalty) is strongest when performance is within or just above the ZOT.
Exceeding the desired service level can lead to diminishing returns in terms of loyalty gains.
Implications for Companies:
It’s more strategic to invest in consistent service quality above the adequate level than to always aim to delight customers.
Efforts to create “delight” might not significantly improve customer outcomes compared to meeting expectations reliably.
My Opinion: This article makes a lot of sense. As a customer myself, I don’t always expect to be wowed—I just want things to work reliably. Occasional delight is great, but it’s reliability that builds trust. Companies should stop obsessing over "delight" and instead focus on not disappointing.
3. Bonding Strategies and Loyalty Schemes (Lecture 3 + Buttle & Maklan Chapter 4, pp.107–116)
Bonding strategies describe how organisations develop deeper relationships with customers. They can be:
Social Bonds
Structural Bonds
Customization Bonds
Legal Bonds
Financial Bonds
Loyalty Schemes
Table of Bond Types and Examples:
| Bond Type | Definition | Example |
|---|---|---|
| Social Bonds | Built on personal relationships, community events, or shared identity | Apple fan community, Red Bull extreme sports events |
| Structural Bonds | Integration of systems, processes, or business operations | Amazon logistics for sellers, car parts suppliers & OEMs |
| Customization Bonds | Tailored experiences based on user behaviour or preferences | Spotify playlists, Netflix recommendations |
| Legal Bonds | Formal contracts requiring long-term commitment | Exclusive B2B supply contracts |
| Financial Bonds | Discounts or perks for repeat/multi-service customers | Telcos offering bundled phone + internet + TV packages |
| Loyalty Schemes | Rewards for repeated purchase behaviour | Starbucks stars, airline frequent flyer programs |
How They Work Together:
Social bonds foster emotional attachment.
Structural and legal bonds build functional dependence.
Customization bonds make the user experience uniquely relevant.
Financial and loyalty schemes provide incentives to stay.
Risks of Loyalty Schemes:
Customers may join multiple programs and show no real loyalty.
Difficult to withdraw or adjust without backlash.
Some customers would buy anyway—so the scheme adds cost without return.
My Opinion: I think the most effective bonding strategies are personalisation and community. Loyalty schemes can support retention, but real loyalty grows when a brand fits into someone's life in a meaningful way—either through connection or convenience.
4. Debate: Do Loyalty Schemes Create True Loyalty?
Point of View Chosen: B This house believes that customer loyalty schemes do not result in true customer loyalty.
Argument: Loyalty schemes can encourage purchases, but they don't necessarily build genuine loyalty. Customers can:
Collect points across multiple brands without exclusive preference
Switch to other providers if a better scheme is offered
Only purchase when incentives are high, showing conditional loyalty
Evidence:
Many consumers use multiple airline mileage programs but show no allegiance unless perks are significantly better.
Dove, which does not use points-based schemes, has built stronger loyalty through emotional branding and purpose marketing.
Conclusion: Loyalty based on rewards is transactional, not emotional. If the reward disappears, so does the loyalty. True loyalty stems from trust, satisfaction, alignment with values, and positive, consistent experiences—not point accumulation.
Point of View B: This house believes that customer loyalty schemes do not result in true customer loyalty.
Customer loyalty schemes have become a popular marketing tool for brands seeking to retain customers, but there’s a strong argument that these schemes do not result in true customer loyalty—they simply incentivize repeat transactions rather than emotional or long-term commitment to a brand.
Firstly, true loyalty is emotional, not transactional. A customer who loves a brand and consistently chooses it—even when alternatives are available or cheaper—is loyal. However, most loyalty schemes encourage customers to collect points or rewards, creating a habit of purchase that is motivated by benefits, not genuine preference. For example, a traveler might collect points with multiple airlines or hotel chains but choose based on convenience or promotions, not brand attachment.
Secondly, loyalty schemes are easily replicated, and consumers often participate in multiple programs at once. Think of supermarket reward cards—many customers carry several and switch stores based on discounts or convenience, not because they feel any deep connection to one retailer. This suggests loyalty schemes encourage deal-seeking behavior rather than true brand commitment.
Additionally, the psychological value of rewards can wear off over time. Once a customer gets used to collecting points, the excitement fades unless the brand continuously raises the stakes or introduces new incentives. This makes loyalty programs expensive to maintain without necessarily deepening the customer relationship.
On the other hand, brands that focus on customer experience, values, or personalized service often enjoy deeper loyalty. For example, Dove's Real Beauty campaign or Apple’s product ecosystem foster loyalty through emotional connection, community, and seamless experience—not through traditional loyalty cards or points.
In conclusion, while loyalty schemes may increase repeat purchases temporarily, they rarely build the emotional trust and attachment that defines true customer loyalty. Instead of investing heavily in point-based schemes, brands should focus on creating meaningful experiences, personalization, and emotional resonance with their customers.
My Opinion: I fully support this view. Loyalty schemes feel like a shallow tool if not backed by great service, purpose, or value. People don’t fall in love with brands because of discounts—they stick with those that connect with them.
Final Reflection:
This module helped me understand that successful customer strategies are multi-dimensional. Engagement, loyalty, and retention aren't achieved with one tactic but with a combination of emotional connection, operational excellence, and relevant incentives. Brands like Duolingo and Dove stand out not just because of what they sell—but because of how they make people feel and how consistently they show up.
In my future work or study, I want to focus more on how brands can combine data-driven strategies (e.g., customization, loyalty) with human-centered design (e.g., community, purpose) to build truly loyal customer bases.
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