This document discusses customer loyalty and retention. It defines brand loyalty as committed repeat purchases over time due to preferences. Companies use marketing strategies like rewards programs to cultivate loyal customers. Customer loyalty is a key determinant of firm profitability. The loyalty ladder segments customers from suspects to advocates. Reasons for loyalty include psychological, economic, technical/functional, and contractual factors. Retaining customers is important because they spend more, cost less, and bring in new customers. The document provides tips for outstanding customer retention like addressing complaints, loyalty programs, and memorable service.

1. Customer Loyalty
By: Sameh Abdel Shafy
Product Specialist
Lundbeck Saudi

2. 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).

3. Key element
 Customer loyalty is widely seen as
a key determinant of a firm’s
profitability.

4. 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.

5.  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 marketing's job to give
them a "helping hand" to get up the ladder

6.  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.

7.  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.

8. 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

9. Non Supporter
• A person who believes you
shouldn’t win and/or prefers
an alternative to your
solution: your competitor, or
nothing at all.

10. Neutral
• A person who shows
no
=
preference.
• You may not have
demonstrated
sufficient
value to gain his

11. 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, he
may not be vocal in his support.

12. 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,

13. Reasons for Loyalty
 Psychological;
 Economic;
 Technical/functional;
 Contractual.

14. Psychological
Customers 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.

15. 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.

16. 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.

17. 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.

18. 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

19. The easiest way to grow your
customers is not to lose them

20. Definition
An 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.

21.  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.)

22. Twelve “deadly” phrases that should
be 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…”

23. 7 Tips For Outstanding Customer
Retention :
 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

24. Thank You