E-loyalty is determined by a number of factors including content (which needs to be kept fresh, relevant and meticulously updated), relationship strength, perceived alternatives and critical episodes.

Engendering and enhancing e-loyalty is a core objective of loyalty marketing - a strategy employed by businesses in order to increase the loyalty of customers and other stakeholders in the drive to meet or surpass designated commercial objectives.

The fundamental assumption in loyalty marketing is based on the well-known business principle that keeping existing customers is less expensive than acquiring new ones. Reichheld and Sasser claimed that a 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (in terms of net present value) depending upon the industry. These figures will also vary depending upon the online business model. Regardless, improved e-loyalty means increased customer profitability.

The increased profitability associated with customer e-loyalty (customer retention) occurs because: acquisition costs only occur at the beginning of a relationship, so the longer the relationship, the lower the amortised cost; account maintenance costs decline as a percentage of total costs (or as a percentage of revenue); Long-term customers display certain unique characteristics [see 'Loyalty Marketing'] and fostering a programme that encourages e-loyalty makes the employees' jobs easier and more satisfying. Consequently happy employees provide better customer satisfaction, which in turn produces higher customer retention.

However, not all customers are profitable and striving to maintain the e-loyalty of unprofitable customers can be a waste of precious resources. It is also important that marketing departments or their respective agencies assess as best they can the profitability of each customer by comparing customers' relationship costs with relationship revenue and terminate any relationships that will not deliver a positive return on investment.