Are Your Customers Loyal?
Anyone in business knows that customer creation and retention are vital if you want to continue to hang the “open” sign on your front door. Many companies spend the majority of their marketing resources attracting new customers with flashy advertising and tempting price incentives. However, what they are failing to consider are the advantages of retaining existing customers. You see, customer “loyalty” is twofold; not only are you ensuring repeat sales, you are also increasing the opportunities for recommendations from a satisfied clientele. In other words, free advertising.
In the recent 2011 Temkin Loyalty rating, 6,000 US consumers were polled across several industries. Participants were asked to assess their levels of loyalty based on 3 criteria: willingness to purchase additional products (or services), reluctance to switch to an alternate provider, and the likelihood to recommend the company to friends and family. Amazon.com, Kohl’s, and Costco took the top spots, respectively. Additionally, the survey revealed that consumers don’t have a high degree of loyalty across many industries. Retailers score the highest level of repeat customers, while health insurance and TV service providers score the lowest.
What can those in the non-retail sector do to boost levels of loyalty? The answer is simple: customer service. It doesn’t take rocket science to ascertain that low loyalty levels are associated with health insurance providers because of their customer-hostile business models. However, there is no reason why those in the B2B, service, and other non-retail industries can’t capitalize on customer loyalty. The criterion listed in the Temkin study are a good starting point - why not ask yourself how your customers would rate you? What are you doing to make yourself indispensable and worthy of praise? Creating a “wow” experience for your clients is essential for not only keeping their business but capitalizing on their referral power.
For the full article and more details on the report, check it out here: