Why customer loyalty?
The path to increased revenue
Customer churn is a problem in many companies. Even though many companies feel they have a handle on their customer loyalty, it is rarely supported with the necessary tools and resources to be effective.
Because of it, the work of maintaining loyal customers often ends up in a dead report, without the respective employees taking ownership of the important task, which, in the end, is the very foundation upon which the company is based.
Customer loyalty? What does it mean?
Customer loyalty has many definitions. The most important one is the definition that is based on your own customers, and what they mean for your own business. Ask yourself how you as a company define a loyal customer, how that loyal customer perceives you, and how said loyal customer influences your sales and your business.
Some believe that a loyal customer, is one that purchases your products, or engages with your brand more than once. Others define loyalty in whether the customer would recommend your product or service to another, and therefore is defined by our behavior as a consumer.
Overall, we can therefore define a loyal customer as one who frequently interacts with your product or service. Loyal customers hang out in your store or recommends it to others. Their positive disposition towards your company is therefore a generator for increased revenue.
It should be noted that a customer who sticks around on the sole basis that the cost of changing to a competing customer are too high, is not necessarily loyal towards your business. The loyalty lies in the positive attitude and the desire to recommend.
Loyal customers are good for business
Based on the argument regarding increased revenue deriving from content or happy customers, it makes sense to, at the same time, discuss the cost of maintaining or acquiring new customers. To maintain or nurture our existing customers is far more lucrative than constantly hunting for new ones.
There is therefore a clear link between customer loyalty and lucrative business.
Customers are highly perceptive to how their social circle asses a product. Customers who have a positive assessment of a product and promote it in their social circle are good ambassadors for the company. It is therefore lucrative for the company to collaborate with its loyal customers and turn them into ambassadors for your company or product.
The additional benefit of having good ambassadors is that they are also more inclined to help you understand what you do well, and what aspects of your business you could do better. The NPS method is a good way to initiate the communication between your customers and gain the necessary findings to increase their likelihood to become ambassadors.
The connection between customer loyalty and NPS
Net Promoter Score make your good intentions towards customer loyalty measurable. It is an effective method to measure your loyal customers, and quickly gain an overview of which parameters of your business you need to adjust in order to improve the customer experience.
In addition, NPS allows for something other models do not. When you send out a questionnaire, you measure the temperature of the present, and the customers future needs or desires are not considered. Therefore, it becomes much harder to proactively create loyal customers.
The NPS method differentiates itself because you measure your customers’ responses in real time, allowing you to engage in dialog immediately, and through that create a foundation for additional insights for future loyalty creating activities.
NPS.Today makes a difference for your customer relations
At NPS.Today we have a loyalty program focused on listening to the customers and to receiving relevant feedback for the company. Genuinely listening to their feedback, makes your good intentions felt by the customer, and the dialog makes them feel relevant.
Your customers are asked ONE question, and they give ONE comment. The minimalistic approach circumvents irrelevant clutter in the dialog and makes it less time consuming for the customer to respond. The customer answers the question based on their own experience and offers the company the necessary insights to increase sales, to create a good customer experience, which again creates more loyal customers.
One clear advantage of our product is that it is easy to understand, and easy to implement. It is easy to implement into your company’s overall strategy, as the NPS data can be translated into easily measurable KPI’S. It is also easy for your employees to integrate NPS into their daily work routines, helping them focus on how to increase customer loyalty instead of it merely increasing their workload.
If you want to hear more about how NPS.Today can help you improve your customer relations, feel free to contact us here. feel free to reach out..