The “Wheel of Loyalty” is a concept developed by Fred Reichheld, a business strategist and author known for his work on customer loyalty and the Net Promoter Score (NPS). The Wheel of Loyalty is a model that helps businesses understand the different levels of customer loyalty and how they can move customers from one level to the next.

The Wheel of Loyalty typically consists of four main levels or categories of customer loyalty:

1. Skeptical Customers: This is the outermost level of the wheel. Skeptical customers are those who have had limited interaction with your brand or business and are not yet fully convinced of its value or the quality of its products or services. They may be trying your offerings for the first time or have had a few interactions but remain cautious.
2. Satisfied Customers: Moving inward, the next level of loyalty consists of satisfied customers. These customers have had positive experiences with your brand, and they are generally happy with the products or services they’ve received. However, satisfaction alone does not guarantee loyalty; customers at this level may still be open to exploring alternatives.
3. Loyal Customers: In the center of the wheel are loyal customers. These individuals or entities are not only satisfied with your offerings, but they also repeatedly choose your brand over competitors. They exhibit a strong sense of loyalty and are likely to recommend your products or services to others. They become promoters of your brand.
4. Advocate Customers: Beyond loyalty, the innermost level of the Wheel of Loyalty includes advocate customers. These customers are not only loyal to your brand, but they actively promote it to others. They may refer friends, family, or colleagues to your business and become powerful advocates through word-of-mouth marketing.

The goal for businesses is to move customers from the outer levels (skeptical and satisfied) to the inner levels (loyal and advocate). Achieving this typically involves delivering exceptional customer experiences, consistently meeting or exceeding customer expectations, and building strong relationships.

Fred Reichheld’s work on customer loyalty, including the Wheel of Loyalty and the Net Promoter Score (NPS), has been influential in shaping customer-centric strategies and understanding the importance of customer retention and advocacy in business success. The Wheel of Loyalty serves as a visual representation of the customer journey and the stages customers go through as they develop loyalty to a brand.