Browsing articles from "December, 2011"
Dec
31

Loyalty Countdown #1 – Build Staff Loyalty

By The Editor  //  December  //  No Comments

It’s a fact: any firm with a high level of customer loyalty has also earned a high level of staff loyalty. It’s darn near impossible to build strong customer loyalty with a staff that is in constant turnover. Why? Because customers buy relationships and familiarity. They want to buy from people who know them and their preferences. The key rule of loyalty: serve your employees first so they, in turn, can serve your customer.

Action Step: Hold regular meetings with staff and ask these questions: What makes our company a good place to work? What can be done to make it an even better place to work? Take action on what you learn.

Source: Griffin, Jill. Customer Loyalty: How To Earn It How To Keep It. 2002.

More Loyalty Countdown:

#12 – Store Your Data In One Centralized Database
#11 – Collaborate With Your Channel Partners
#10 – Give Your Front Line the Skills to Perform
#9 – Use Multiple Channels to Serve the Same Customers Well
#8 – Win Back Lost Customers
#7 – Know Your Customer’s Definition of Value
#6 – Get Responsive & Stay That Way
#5 – Aggressively Seek Out Customer Complaints
#4 – Serve First; Sell Second
#3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them
#2 – Practice the 80/20 Rule
#1 – Build Staff Loyalty

Dec
30

Loyalty Countdown #2 – Practice the 80/20 Rule

By The Editor  //  December  //  No Comments

In building customer loyalty, the 80/20 rule is alive and well. Roughly speaking, 80 percent of your revenue is being generated by 20 percent of your customers. All customers are not created equal. Some represent more long-term value to your firm than others. A smart company segments customers by value and monitors activities closely to ensure high value customers get their fair share of special offers and promotions. Unlike many firms that simply measure overall redemption, these savvy loyalty builders pay close attention to who redeems.

Action Step: Rank your customers according to actual revenue generation, with your highest-ranking customer contributing the most revenue over the past year (or some other relevant time period). Next, rank your customers regarding lifetime value. If your company is like most, you must develop a lifetime value formula by which to calculate this value. Compare the two lists and make sure you are adequately investing in customer appreciation programs that provide for high-ranking customers on both lists.

Source: Griffin, Jill. Customer Loyalty: How To Earn It How To Keep It. 2002.

More Loyalty Countdown:

#12 – Store Your Data In One Centralized Database
#11 – Collaborate With Your Channel Partners
#10 – Give Your Front Line the Skills to Perform
#9 – Use Multiple Channels to Serve the Same Customers Well
#8 – Win Back Lost Customers
#7 – Know Your Customer’s Definition of Value
#6 – Get Responsive & Stay That Way
#5 – Aggressively Seek Out Customer Complaints
#4 – Serve First; Sell Second
#3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them
#2 – Practice the 80/20 Rule
#1 – Build Staff Loyalty

Dec
29

Loyalty Countdown #3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them

By The Editor  //  December  //  No Comments

A customer becomes loyal to a company and its products and service on step at a time. By understanding the customer’s current loyalty stage, you can better determine what’s necessary to move that customer to the next level of loyalty. Our “Growing Loyal Customers” system comprises six stages: suspect, prospect, first-time customer, repeat customer, client and advocate. If your customer relationship processes and programs aren’t moving customers forward, rethink them.

Action Step: Using the customer loyalty stages, define loyalty for your customers (what distinguishes a repeat customer from a client in your particular business?) Use the customer data you collect through your loyalty program to rank your customers according to lifetime value; we’ll talk more about creating these lists on our Loyalty Countdown #2 post. Beginning with your highest-ranking customers, identify which loyalty stage each customer is in. Next, create a customer action plan for moving that customer to the next higher level of loyalty.

Source: Griffin, Jill. Customer Loyalty: How To Earn It How To Keep It. 2002.

More Loyalty Countdown:

#12 – Store Your Data In One Centralized Database
#11 – Collaborate With Your Channel Partners
#10 – Give Your Front Line the Skills to Perform
#9 – Use Multiple Channels to Serve the Same Customers Well
#8 – Win Back Lost Customers
#7 – Know Your Customer’s Definition of Value
#6 – Get Responsive & Stay That Way
#5 – Aggressively Seek Out Customer Complaints
#4 – Serve First; Sell Second
#3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them
#2 – Practice the 80/20 Rule
#1 – Build Staff Loyalty

Dec
28

Loyalty Countdown #4 – Serve First; Sell Second

By The Editor  //  December  //  No Comments

Today’s customers are smarter, better informed and more intolerant of being “sold” than ever before. They expect doing business with you to be as hassle-free and gratifying for them as possible. When they experience good service elsewhere, they bring an if-they-can-do-it-why-can’t-you? attitude to their next transaction with you. They believe you earn their business with service that is pleasant, productive and personalized; if you don’t deliver, they’ll leave.

Action Step: Use the customer data you collect through your loyalty program to rank your customers according to lifetime value; we’ll talk more about creating these lists on our Loyalty Countdown #2 post. Using these lists, identify those high-value customers that are most demanding. Next, isolate the needs, expectations and requests that make these customers more demanding than others. Ask yourself: What can we do to upgrade our systems and processes to better provide this high level of performance? Which of our other customers would likely benefit from these upgrades? Let this thinking help guide your development priorities.

Source: Griffin, Jill. Customer Loyalty: How To Earn It How To Keep It. 2002.

More Loyalty Countdown:

#12 – Store Your Data In One Centralized Database
#11 – Collaborate With Your Channel Partners
#10 – Give Your Front Line the Skills to Perform
#9 – Use Multiple Channels to Serve the Same Customers Well
#8 – Win Back Lost Customers
#7 – Know Your Customer’s Definition of Value
#6 – Get Responsive & Stay That Way
#5 – Aggressively Seek Out Customer Complaints
#4 – Serve First; Sell Second
#3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them
#2 – Practice the 80/20 Rule
#1 – Build Staff Loyalty

Dec
27

Loyalty Countdown #5 – Aggressively Seek Out Customer Complaints

By The Editor  //  December  //  No Comments

For most companies, only 10 percent of complaints are ever articulated by customers. The other 90 percent are unarticulated and manifest themselves in many negative ways: unpaid invoices; lack of courtesy to your front line service reps; and above all, negative word of mouth. With the internet, especially social media, an unhappy customer can now reach thousands of your would-be customers in a few keystrokes. Head off bad press before it happens. Make it easy for customers to complain, and treat complaints seriously. Establish firm guidelines regarding customer response time, reporting and trend analysis. Make employee complaint monitoring a key tool for executive decision making.

Action Step: Review every customer touch point within your company. Brainstorm with staff on how to turn each customer touch point into an opportunity to capture customer complaints and other feedback. Experiment with how to make the feedback mechanism as easy for customers as possible.

Source: Griffin, Jill. Customer Loyalty: How To Earn It How To Keep It. 2002.

More Loyalty Countdown:

#12 – Store Your Data In One Centralized Database
#11 – Collaborate With Your Channel Partners
#10 – Give Your Front Line the Skills to Perform
#9 – Use Multiple Channels to Serve the Same Customers Well
#8 – Win Back Lost Customers
#7 – Know Your Customer’s Definition of Value
#6 – Get Responsive & Stay That Way
#5 – Aggressively Seek Out Customer Complaints
#4 – Serve First; Sell Second
#3 – Know Your Loyalty Stages & Ensure Your Customers Are Moving Through Them
#2 – Practice the 80/20 Rule
#1 – Build Staff Loyalty







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