Did you know that May 1 is Loyalty Day — the same day much of the rest of the world celebrates as May Day? Since studies have shown that it costs 6 to 7 times more to acquire a new customer than keep an old one, outpacing your competition depends upon having a loyal tribe of happy customers.
How do you perfect the art of acquiring a loyal customer? At the end of the day, when customers feel taken care of they are more inclined to buy from you again. Customers now have access to an endless amount of information about your business, and research shows that they’re ready and willing to stick around with companies who go above and beyond to create a fantastic customer experience.
What is Customer Loyalty?
Loyalty can be defined as a customer continuing to believe that your organization’s product/service offer is their best option. It best fulfills their value proposition whatever that may be. They take that offer whenever faced with that purchasing decision.
Moreover, loyalty means hanging in there even when there may be a problem. This occurs because the organization has been good to them in the past and addresses issues when they arise. It means that they do not seek out competitors and, when approached by competitors, are not interested. It also means being willing to spend the time and effort to communicate with the organization so as to build on past successes and overcome any weaknesses.
In a nutshell, loyalty means a customer wants to do business with you and does.
Is great customer service really worth the effort?
It’s not as clear-cut as simply looking at a sales chart to see if your service quality is in the black. A report published by American express revealed that 3 out of 5 customers were willing to give up a former favorite brand in order to have a better service experience. Customer experience management is the most cost-effective way to drive customer satisfaction, customer retention and customer loyalty. Not only do loyal customers ensure sales, but they are also more likely to purchase supplemental services. Loyal customers reduce costs associated with consumer education and marketing, especially when they become brand ambassadors for your organization.
Therefore, in terms of customer loyalty, customer experience management proves itself as a sustainable competitive advantage.
Measuring Customer Loyalty
Think about it. When it comes to understanding your customers, do you really know…
- What’s important and what is valued in the relationship?
- Whether what customers tell your sales people and account managers truly is what they mean? What is said behind your back?
- Whether their continued business means they really want to do business with you? Do you know who the truly loyal customers are?
- How does the competitor’s offering affect what they think about yours?
- The true costs of serving your customers relative to their loyalty and revenue/profitability?
And most important of all: are you treating your loyal customers as loyal customers should be treated?
You can and should, see your business through your customers’ eyes. BARE’s customer experience research can provide you with the above critical data to make meaningful business decisions. Our customer research solutions provides you with instant results, unlimited feedback, and allow for customer incentives in exchange for completing surveys and face-face-interviews to gather your customers’ opinions while their experience is still top of mind.
In all companies the collection, analysis, presentation and dissemination of business information can present monumental challenges. Business intelligence (BI) analysis can identify the evolution of these results and more over time. The BI reports are comprehensive presentations of insights and conclusions derived from your data.
By revealing and targeting the issues your business faces, you can have the information and tools to create a seamless experience for your customers, ultimately creating customer loyalty. Get in touch today for a complimentary evaluation of your business.
Wishing everyone a happy Loyalty Day 2018!