Definition of Brand Loyalty When consumers become committed to your brand and make repeat purchases over time. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price. Companies will often use different marketing strategies to cultivate loyal customers, be it is through loyalty programs (i.e. rewards programs) or trials and incentives (ex. samples and free gifts).
Key element Customer loyalty is widely seen as a key determinant of a firm’s profitability.
Loyalty Ladder A Loyalty Ladder is a customer relationship model. It is a way of segmenting your customers and then developing communications which appeal to them.
Suspect A suspect is someone who comes across your company’s promotion. They are a suspect for your company. Prospect If the person is interested in your promotion they become a prospect. The climb up the ladder has begun, its marketings job to give them a "helping hand" to get up the ladder
Customers A customer is someone who purchases either your product or service. This stage needs to go well to encourage customers to come back and buy from you. Clients Clients are those who come back to the business and make ongoing purchases. There is something about the firm that they like. Relationship marketing may enable you to identify what that is, so that you can plan how to get them to the ultimate stage - Advocate.
Advocates An advocate promotes your business on your behalf. They are so happy about your product/service that they not only buy from you again and again but also tells others about you. An advocate is a valuable asset and should be looked after for example through loyalty rewards, discounts, freebies invites to promotional events and excellent customer service.
Enemy • A person who believes that your success will X hurt his company or him personally. • He will make a special effort to cause you to lose. • He may be an advocate
Non Supporter • A person who believes you shouldn’t win and/or prefers an alternative to your solution: your competitor, or nothing at all.
Neutral • A person who shows no = preference. • You may not have demonstrated sufficient value to gain his
Supporter • A person who prefers your solution and thinks that you + should win. • He will typically provide you information or assistance, if you request. However, hemay not be vocal in his support.
Advocate . * • A person who believes that your success is critical to his company or to him personally. • He will work to help you win by giving feedback,
Reasons for Loyalty Psychological; Economic; Technical/functional; Contractual.
PsychologicalCustomers might also develop a sense of loyalty to a certain person working for a company. People can build up a good relationship with a bank advisor they have known for several years and who has always fulfilled their expectations. The fact that people develop a sense of loyalty can be described as a psychological reason to stick to a specific product.
Economic In business-to-business markets, it might also be possible that customer loyalty results from the fact that switching to another company would lead to the company facing economic disadvantages. In this case, loyalty is based on economic grounds.
Technical/ functional Furthermore, it might be possible that a company adjusted and adapted its technical procedures to a particular supplier and a change would cause immense technical problems, thus, technical or functional reasons are the grounds for customer loyalty.
Contractual A contractual reason for loyalty exists if a customer is bound to the company for a certain period of time due to a contractual agreement and for legal reasons. Moda 3 years order.
Customer Retention Happy Employees = Happy Customers Offer Quality Products and Services Listening To Your Customers Engage your customer with you (Partnership) Reward Your Best Customers Be Professional Yet Have Fun
The easiest way to grow yourcustomers is not to lose them
DefinitionAn assessment of the product or service quality provided by a business that measures how loyal its customers are. Customer retention statistics are typically expressed as a percentage of long term clients,and they are important to a business since satisfied retained customers tend to spend more, cost less and make valuable references to new potential customers.
The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20% (from Marketing Metrics). Research also shows that a 10% increase in customer retention results in a 30% increase in the value of the company (from Bain and Co.)
Twelve “deadly” phrases that shouldbe avoided: “It’s our policy.” “There’s nothing I can do for you.” “We can’t do that,” or “We don’t have that.” “My system won’t let me do that.” “There are no supervisors.” “I can’t transfer you.” “You’ll have to call another department.” “I can’t help you with that. You’ll have to put it in writing and send it to….” “I have to charge you a fee” “I can’t remove that fee.” “It was stated in the agreement. Didn’t you read it?” “Call me back when you’re ready…”
7 Tips For Outstanding CustomerRetention : Pay Attention To Complaints Just Ask Them Up Your Service With A Loyalty Program Service With A Smile Be A Solution Provider Be A Value Provider Keep Your Service Memorable