I recently read an article that I felt was worth sharing:
Has any sense of customer loyalty been lost in the current business climate?
- Major companies replace half of their customers in five years
- Similarly, companies are replacing half their employees in four and a half years
- The average American will hold 10 to 12 jobs over a lifetime, each for an average of 3.5 years.
In today's economy, changing jobs is considered by many as a sign of a successful career. Customers and shoppers are constantly bombarded with challenges to find a better deal. The internet allows a mouse-click to shift purchasing power anywhere around the globe. Our society seems to value shopping around for better values instead of buying from just one trusted source. What good is loyalty in all of this? Is loyalty all but extinct?
Much to the contrary ... loyalty is at the heart of every company that has consistent solid profit, high productivity, and sustained growth. Studies have proven that a company that has a 5% improvement in customer retention, could see it's profits rise by as much as 50%. So what are you and your team doing, each and every day, to build customer loyalty?
- It all starts with the first contact of a SUSPECT (someone that doesn't know anything about you and your business) ... what would be the best way for a SUSPECT to hear about you and your business?
- The PROSPECT has now become informed about your company ... what special care and communication are you providing to encourage them to consider becoming a part of your buying community?
- The SHOPPER has made a single purchase ... what was that experience like? What type of service was provided to make them feel compelled to come back again?
- The CUSTOMER is now buying from you more regularly ... they have found they are satisfied with buying from you ... and how will you keep them from even considering purchasing from anyone else?
- The MEMBER now feels like they are part of a community ... people buy from people they know, like and trust. We are now truly building loyalty ... how do you help make your "A" Class Customers feel like connected "members"?
- The ADVOCATE is a strong member of your buying community. When asked, they will provide you with great referrals.
- The RAVING FAN is the ultimate goal! How do you create Raving Fans that openly, proactively seek out referrals for YOUR business? If you are attempting to create a ‘Referral-Based Business", then creating Raving Fans is how you can successfully accomplish this.
So, ... what are you doing to profitably create RAVING FANS for YOUR business?
"... loyalty building is not only good business, it's also good corporate citizenship. This is a philosophy we live by at L.L. Bean, and one with which I couldn't agree more." - Leon A. Gorman, President, L.L. Bean
I like his progression from suspect to raving fans. Are you working to develop raving fans in your business?
This was written by Byran Sirak. You can find Bryan on Linkedin.