There are several definitions of customer loyalty. The one I find most useful and prefer is the one by BeyondPhilosophy.com, and it goes like this:

Customer Loyalty is the result of three major factors:

  1. Consistently positive emotional experiences
  2. Satisfaction with the physical attributes and or performance of the products and or services
  3. The perceived value of the experience, which includes the products and or services

“To build loyalty, customer experience management blends the physical, emotional, and value elements of an experience into one cohesive experience.”

Now using my term solution for a bundle of products, services, and inevitable experiences, when customers are loyal, customers:

  1. Will feel an intense emotional engagement with the business
  2. Wil actively choose your business over others providing the same solutions
  3. Will proactively advocate your solutions to all who will listen
  4. Will likely dismiss and forgive occasional solution failures as out-of-character and atypical, as opposed to typical, so long as they are in fact rare and are remedied

In summary, Customer Loyalty is an emotional attachment, based on memories, that manifests in repeated patronage and proactive advocacy.