THE 3Rs OF CUSTOMER LOYALTY

THE 3Rs OF CUSTOMER LOYALTY

We are at the crux of an historic moment—of financial, technological and social changes that are reshaping the entire industry. The challenges are daunting, the opportunities tantalizing, the keys to success not always clear.

RETENTION

An ongoing relationship with a customer creates a steady stream of revenue over time as the customer continues to buy products.

Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace.

Customer retention is more than giving the customer what they expect; it’s about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts ‘Customer value rather than maximizing profits and shareholder value at the center of business strategy’. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service.

RELATED SALES

Selling new products to existing customers is a great source of revenue.

When enough customers are firmly established, you can expect repeat business and an assured income that provides a firm foundation for their livelihood. That's what professionals call a "customer base".

The seller can return to these customers with new products or services with the knowledge that they will get a favorable reception. It is also likely that positive attitudes have been established, it is easier to get referrals.

REFERRALS

A satisfied customer who recommends a product to another person provides the most influential marketing a company can ask for – and it´s free.

The business of referrals makes sense for most companies for the following reasons:

Referral marketing reduces your sales expenses and sales cycle. With less time calling cold prospects, your small business can focus on customers and their circle of influence.

Referrals can build your level of satisfied customers. The cycle self-perpetuates with more satisfied customers referring others to your company.

Referrals increase your sales revenue. According to world-renowned sales trainer, Tom Hopkins, in "Sales Prospecting for Dummies"; your closing ratio for non-qualified leads is 10 percent versus a 60 percent close ratio with referred leads.

...