How Do You Develop Customer Loyalty?

To develop customer loyalty means that you must know what to do and probably change your paradigms.  Loyal customers have different expectations than just satisfied ones.

Customer Loyalty Coaching Tip:  The digital disruption will impact your paradigms about loyal customers.

To learn your customers’ expectations begins with the management team.  Senior management needs to identify the points of connection within the customers’ experiences. Points of connection are anything that customers can see, feel, smell, taste or hear. Literally walking through the organization is a very simple way to locate the many points of connection.

Also, management needs to determine what a loyal customer is worth over the average customer lifetime.  For example, a satisfied customer visits a local retailer four times a year and spends an average of $50. This customer is worth $200.  A loyal customer visits the same store, spends $50 weekly and her value climbs to $2,600 annually.

Now consider those customers shop the same store in the same manner for 10 years. The satisfied customer has a total customer value of $2,000 while the loyal customer is worth $26,000.  This calculation quickly demonstrates how just a 5% retention in customers can create a 25 to 100% increase in profitability.

Some retail stores such as automotive to industries such as lodging have extensive data about their customers and understand the overall value every potential customer brings to their establishment.

Then a customer service survey can be created to reflect these points of connections as well as other issues such as unresolved problems.  When this information is compiled, then a customer loyalty strategic plan can be developed to ensure that all actions are aligned to the goal of developing loyal customers.

Of course, employees also need to be trained and developed to embrace a customer loyalty philosophy while shedding the old one of customer satisfaction. This customer service training should have them also identify points of connection and understand the critical goal of problem resolution.

TAKE ACTION to make every customer experience is the best.  Begin with a organizational assessment that is aligned to a continuous improvement process. Then take time to identify the critical points of connection.

Share on Facebook

Leave a Reply

CommentLuv badge

This blog is kept spam free by WP-SpamFree.

RSS Subscribe!
Coaching Tip

People buy results or rather people buy the feelings the results deliver.

What’s Happening?

Internal Results interviews
Leanne Hoagland-Smith
. Some of her answers may surprise you.

Check out this podcast on value creation between David Brock and Leanne Hoagland-Smith

Listen to Leanne Hoagland-Smith at Sales Scenario podcasts

Another list of top sales bloggers

Pre-order this great book How to Get a Meeting with Anyone. You may recognize a familiar name.

Top 100 Most Innovative Sales Bloggers Honored this blog is included in this impressive list.

Best Sales Blogger Award for 2014 Third place awarded to Leanne Hoagland-Smith.

NWI SBDC awarded Small Business Journalist of 2014 to Leanne Hoagland-Smith. Awards.

Expand Your Business Horizons
Sign up to receive monthly newsletter devoted to small businesses and busy sales professionals Beyond the Black
Be the Red Jacket
Seeking an easy and practical book on marketing, selling and sales? Read the reviews at Amazon and then order your hard copy or eBook.
Sustainability Expert
The Institute for Sustainability
Ezine Expert
Blogroll – Leadership, OD
Contact Coach Lee

Leanne Hoagland-Smith
219.759.5601 Main Office CDT
219.508.2859 Mobile CDT

Office located near Chicago, IL

www.processspecialist.com Main Website

Sales Corner

Tracking by The Sales Corner
Blog Rankings
Business Blogs - Blog Rankings
Blog Top Sites
Plazoo
RSS Search
Blog Log