When marketers and business officials discuss customer loyalty, often times they describe it using specific, quantifiable statistics and metrics such as conversion rate, sales increase, and signup increase. If numbers such as these are high, it is generally acceptable to say that your store has built a loyal following of customers. But these numbers don’t tell the entire story of customer loyalty. Although the conversion rate can tell how many visitors you convert into sales, it can’t be used to explain how captivated your customers are, the trust they have for your brand, or how willing they are to pay a premium price for your products.
Consider this. When a professional sports team drafts an athlete many things are taken into account. The number of goals the player has scored, the number of tackles the player has made, or the number of points they have amassed are all closely scrutinized to determine if the player should be chosen or not. But, there is something that cannot be quantified nearly as easily that has significant impact as to whether a player will be drafted or not. These are called “intangibles”, they are not as easy to see, quantify, or explain like statistics are. Things like football IQ, leadership abilities, and soccer sense are all examples of intangible assets to athletes and can spell the difference between an OK player or a great one.