– the route to higher turnover and revenue
Customer loss is a problem for many companies. While many companies believe they have a solid and well-designed focus on customer loyalty, it’s not always the case that their efforts are made using the right tools and resources.
Working with loyal customers therefore often ends with the loss of a customer, without customer-facing employees taking responsibility for the key task of preserving the company’s raison d’être.
Customer loyalty – what does it mean?
Customer loyalty can have various definitions. However, the most important thing is that you find out what customer loyalty means to your business and for your customers. Ask yourself how your company defines a loyal customer, how a loyal customer defines your company and how this customer helps to optimise your sales and your business.
Some people believe that a loyal customer is one who buys a product or supports a brand more than once. Others believe that loyalty also involves recommending products or services – and thus our behaviour as consumers.
In general, therefore, we can define a loyal customer as one who interacts with your products or services regularly. In other words, loyal customers are visiting in the store or directing other customers there. Their positive attitude towards your business thus generates increased profit.
It needs to be emphasised, however, that a customer who stays due to the cost of switching to a competitor is not necessarily being loyal to your company. Loyalty lies in the positive attitude and the desire to recommend.
Customer loyalty is good business
The profitability argument and having satisfied and loyal customers also makes sense in relation to the expenses we incur in retaining or recruiting new customers. Retaining and nurturing your existing customers is far more profitable than constantly having to chase new customers.
This means that there’s a clear connection between customer loyalty and good business.
In addition, consumers are highly influential in relation to how their circle of friends assess or mention a product. Customers who mention your product in positive terms and bring it to the attention of their circle of friends are good ambassadors for the company. It therefore again pays to work with loyal customers to also turn them into good ambassadors.
The advantage of ambassadors is that they’re also more likely to tell you what you’re doing well and less well. Communication between your company and your customers increases – and precisely this increased communication and dialogue can also be initiated with the NPS method.
The relationship between customer loyalty and NPS
Net Promoter Score makes your good customer loyalty intentions measurable. It’s an effective way to quantify your loyal customers and get a quick overview of what parameters you should adjust to improve the customer experience.
At the same time, NPS can do something that other models can’t do directly. When you send out a questionnaire, you assess the present and the customer’s needs and the future situation does not come into play. This also prevents you from working proactively to create loyal customers.
What makes the NPS methodology different is that you can see your customers’ responses in real time, take action and enter into dialogue right away, while at the same time creating insights as a basis for your future loyalty-creating activities.
NPS. Today makes a difference to your customer relationships
NPS.Today has a loyalty programme that’s about listening to customers and their direct attitude to your company. When you listen, this gives rise to relevant dialogue – both for the customer and for the company. And it’s your customers who run your business, so listening creates good intentions that your customers can feel.
Your customers are asked one question and make one comment. In this way, you don’t intrude on the customer with irrelevant and excessive questions that are time-consuming to answer. The customers answer from their own experience and give you the insights you need to generate more sales and good experiences – and attract loyal customers to your store.
One clear advantage of our product is how easy it is to understand and implement. This applies to the overall strategy of the company because you can set up clear KPIs with your NPS data. It’s also easy for employees to integrate NPS and create focus on customer loyalty across departments and areas of responsibility.
You’re always welcome to contact us if you have any questions or you’re curious about what we can do for you. CONTACT US HERE.