Is your customer, he or she, that “into” the relationship they have with your company? Do they value the relationship? Are their eyes wandering over to your competition at the other table? Why should you care?
You should care because if your customers feel a personal connection to your business, then they are far more likely to remain customers and will often be a rich source of referrals.
There are two different types of customer loyalty and you need to measure both in order to turn loyalty into revenue.
1) Transactional Loyalty — How recently did they make a purchase, how frequently do they purchase, what is the length of your relationship?
2) Emotional Loyalty — Has the customer made you the standard, how likely are they to recommend you to a friend, are they willing to pay a premium?
It makes sense that all businesses want to have loyal customers. But most companies don’t take the necessary steps to develop the sort of customer that not only remains an active, profitable customer but is also likely to promote your business to others.
That loyalty is built over a long period of time and through multiple positive experiences. But loyal customers will become promoters of your business. Customers who become promoters must first believe that a company offers superior value in terms of price, features, quality, functionality, ease of use, etc.
In addition, they must feel good about their relationship with your company — they must believe the company understands and values them and, maybe most importantly, listens to them.
Inviting customers to participate in the product development process is a great way to demonstrate how much you value their input. Maintaining that loyalty through excellent customer service and offering value requires an investment in time and resources, but in the end it will always pay off.
About the Author:
Bob McCarron is the Financial Services and Insurance Practice Leader at SIGMA Marketing Group. Connect with Bob on , or follow him on .