The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed.
Customers are said to have a ‘zone of tolerance’ corresponding to a range of service quality between ‘barely adequate’ and ‘exceptional.’ A single disappointing experience may not significantly reduce the strength of the business relationship if the customer’s overall perception of quality remains high, if switching costs are high, if there are few satisfactory alternatives, if they are committed to the relationship, and if there are bonds keeping them in the relationship.
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The Daily Omnivore 