Understanding and developing customer loyalty delivers business reward
Retaining customers is essential as well as making economic sense. It costs significantly less to maintain a customer relationship than to acquire new customers. Findings vary but it can be a multiple of 6 – 10 times as much spend to attract new clients than to retain old ones!
Loyalty should be rewarded as it makes financial sense to do so. There is a greater probability of increasing spend from an existing customer (increasing share of wallet) as they will already view your company as a trusted entity.
Purpol Marketing can recommend strategies to retain customers by understanding both Customer Loyalty and Customer Relationship Management. We have techniques to maximise conversion, cross-sell services and track spend so that the effectiveness of your activity can be measured. KPIs offer a key methodology so each business can understand the Return on Investment (ROI) of key clients and sectors
Loving your loyal customers will lead to greater profitability
In the drive to obtain new customers, customer loyalty is often overlooked, however statistics prove it is significantly cheaper to retain a customer than to find a new one. The loyalty business model states quality of product or service leads to customer satisfaction. This leads to customer loyalty, which in turn leads to profitability.
Loyalty marketing, based on strategic management, enables a company to focus on growing and retaining existing customers. This is achieved through incentives, branding and promotions which all form part of the customer proposition. It is the customer’s subjective assessment of the integrated combination of these that creates customer value. Ideally this should be measured using customer satisfaction measurement tools and linked back into a Customer Relationship Management (CRM) system. Measurement of activity drives the data of customer understanding.
In the world of customer retention, knowing how your customer behaves and what they want enables your business to position itself to deliver what is needed.
Customer Relationship Management (CRM) – the science behind managing customer relationships
Whilst we can spend a lot of time on definition, Customer Relationship Management (CRM) enables a business to manage multiple relationships, with multiple decision makers who use different touch points of interaction. In the world of customer retention, knowing how your customer behaves and what they want enables the business to better position itself to deliver what is required.
In business, to increase sales there are two fundamental options. The first choice is to get more sales from the customers that you already know. The second choice is to get sales from those who are not yet a customer of yours. If you understand what your current customers value, you can present this offer to new targeted customers who have similar requirements.
Customer relationship management tools can be developed so that you can manage your company’s interactions with current and future customers. By using technology, you can organise, automate, and synchronise. This can be applied to activity relating to sales, marketing, customer service, and technical support.