CRM Tips: 8 Key Customer Loyalty Lessons to Help Your Business Thrive

8 Key Customer Loyalty Lessons to Help Your Business Thrive
In today’s intense competition to garner eyeballs, capturing the loyalty of the customer is easier said than done.

Here are eight key lessons that will make you wiser than the competition and help your business thrive.

Lesson #1 Customer loyalty is scarce, protect it
In the olden days where consumers had little or no choice, they could be expected to make repeat buys even when they are dissatisfied. But today, with the variety of choices available, customers will shift to competition even at the slightest dissatisfaction.

Lesson #2 Past loyalty index does not mean a secure future
‘Past performance is no guarantee for future’ applies not only to stock exchanges, but also to customer loyalty. Humans go through different stages throughout their lifecycle. Their income, aspirations increase over time as they move up their career and business. Thus, your business should constantly innovate on new programs to keep the customers engaged and loyal.
Lesson #3 Define benchmark for tracking customer loyalty
Things that can be measured can be improved. Previously, it was a common business gripe that loyalty cannot be measured and tracked. But, today, with the help affordable CRM solutions, you can capture customer interaction and take the pulse of current trends, behavior analysis etc. Only through regular tracking, can you find and devise areas of improvements.

Lesson #4 Loyalty programs need innovation
Customers are inundated with many loyalty programs that are similar in nature, thus losing interest to participate. You need to think outside the box and develop a program that is not run of the mill. This may be easier said than done, but you can take the help of professional agencies to design your brand’s loyalty program.
Different types of customer loyalty programs
Source: loyaltymarketing.com
Lesson #5 Discounting coupons do not contribute to loyalty
It is often wrongly assumed that offering customers loads of discount will keep them hooked on to you. But what if a competitor follows your pricing strategy and slashes prices to the levels that you cannot afford? What will you do then? 

Discounting coupons attract customers that are after cheap prices points and not value. You lose them as soon as another great discount comes from a competitor. Instead, try focusing on delivering greater value for the reasonable price points.

Lesson #6 Customer profitability follows the 80-20 rule
Not every customer of yours will be profitable. It is often seen that a small number of customers contribute the largest to a brand’s profit base. The Pareto principle, named after Vilfredo Pareto, an Italian economist, states that 80% of the profits is contributed by 20% of the customers.

Lesson #7 Customer banding is helpful for building richer relationships
Customer banding, otherwise known as customer segmentation, helps you to identify which customers are worth spending marketing bucks on. With this, you can safely leave customers who are drag to your bottom lines and concentrate of customers who add value to your firm.

Lesson #8 CRM solutions enables you to know your customer better
Large businesses may face a challenge to know their customers in depth. This is where good CRM solutions comes in. After integrating customer loyalty programs and running multi wave campaigns, it helps businesses identify customer preferences and offer relevant products/services.

Customer loyalty is a goldmine for you to establish your business on a strong foundation. Incorporate the above lessons in your campaigns with the help of CRM Solutions.

6 comments:

  1. This is a very well written and well thought out article. Being in the Leadership and Sales Management Training business for years it is good to see articles like these that ultimately benefit the reader

    Thank You

    Peak Performance Sales Training

    http://www.peakperformancesalestraining.com

    ReplyDelete
    Replies
    1. Thanks Kevin for your feedback! :)

      Delete
  2. I would like to add some more lessons,
    For great brands the typical characteristic is that they constantly iterate, innovate and making a habit of it.
    You can lead to sales if you have established great relations with customers and make your customers happy from motivated and happy employees.

    ReplyDelete
    Replies
    1. Great pointers Charles, thanks! :)

      Delete
  3. Certainly a well-used CRM that is purpose-built for the business will be a substantial and core requirement for any successful business that wants to grow long term relationships and keep a thriving business going. The world moves too fast to remember who, what, when, where and how without CRM system in place.

    ReplyDelete
    Replies
    1. All that matters in the end is how your business treats customers, regardless of CRM. Thanks for your feedback!

      Delete