5K is a method of the Total Loyalty Marketing concept. The authors of the concept are the German marketing experts Anne M. Schüller and Gerhard Fuchs. They identify 5K as the basis for the customers´ loyalty to an enterprise (organization) and its products.
The Individual “Ks” in 5 K represent (English translation, German original in brackets):
- Communication (Komunikation) - a two-way dialogue between the organization (enterprise) and its customers; through sales promotion, public relations and adaptation to specific customer communication needs
- Purchase costs (Kosten des Kaufs) - include not only direct costs, i.e. selling price, but also variable costs necessary to obtain information about the organization and its products
- Purchase benefit (Käufernutzen) - benefit that is created by using the products of the organization and related additional services. A key factor is the quality of the products and services
- Purchase process (Kaufprozesse) - the basis is a friendly approach to the customer during the purchase, adaptation to his needs and requirements, establishing personal relationships in sales and flexible, consumer-oriented logistics
- Culture (Kultur) - the organization is characterized by a warm and friendly climate and corporate culture, showing both on the inside as well as on the outside; it has good will and a good reputation, it behaves ethically. The organization behaves responsibly and is accepted by the public.
According to Schüller and Fuchs, focusing on all the five above mentioned “Ks” and attaining their perfect balance is key to gaining and retaining loyal customers.