Customer Loyalty

Want to know how to Improve Customer Loyalty and improve Customer Lifetime Value?

Customer loyalty is determined by three factors:

Relationship strength
Perceived alternatives
Critical episodes

The relationship can terminate and the customer move if:

You haven't built an emotional bond with your customer and more suitable alternative providers become available.
The customer feels no customer loyalty and the relationship strength isn't weak.
The company handles a critical episode poorly.

Delivering a quality Customer Experience that is emotionally engaging will increase customer loyalty and make your business less vulnerable to competitive offers and new players in your market.

Customer loyalty also impacts on profitability. The fundamental assumption of all the loyalty models is that keeping existing customers is less expensive than acquiring new ones.

Great Customer Experiences will increase customer lifetime value and reduce costs. Long term customers tend to be less inclined to switch and also tend to be less price sensitive. This can result in stable unit sales volume and increases in sales volume.

Customer loyalty marketing kicks in as long term customers initiate free word of mouth promotions and referrals.
Long term customers are more likely to purchase ancillary products and high-margin supplemental products.
Long term customers tend to be satisfied with their relationship with the company and are less likely to switch to competitors, making market entry or competitors' market share gains difficult.
Regular customers tend to be less expensive to service because they are familiar with the processes involved, require less "education", and are consistent in their order placement.

Click here to view case studies and see how we helped improve customer loyalty levels

Want to learn more? Then call us now on 0207 917 1717 or alternatively, email your enquiry to contact@beyondphilosophy.com

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