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Customer Loyalty: What It Is And Why It’s Important

Customer Loyalty what it is, and why it's important Why Is Customer Loyalty Important? Customer loyalty drives financial results by increasing same-store sales. Organizational psychologists call this behavior "Intent to Return." Increasing intent to return improves financial results. Retail StoreFront Customer buys product Customer loves product Customer loves Customer needs store another product Customer returns to store What Is Customer Loyalty? Decision-Making: Decision-making is 30% rational and 70% emotional according to behavioral 70% emotion economists. 30% It's the emotional side of the decision-making process that creates connected, passionate, engaged logic customers. 3 out of 4 Americans are members of at least one retail loyalty card program. Research shows that 80% of people who do not receive quality customer service do not complain - they simply take their business elsewhere. The Problem 27.5% of marketers admit they have not mobilized brand loyalists to become active advocacy agents. 80% of company owners and business executives believe that their company is providing a "superior customer service experience." 29% of companies find it difficult to align their loyalty pro- gram with the overarching enterprise strategy ..but 54% of their customers disagree. 57% of businesses actually have an explicit loyalty strategy. 20% of businesses do not even have a strategy for customer loyalty. 62% of companies find it difficult to deliver offers with a high perceived value. 87% of organizations rely on their marketing departments for customer loyalty strategies. The Solution Providing quality customer service is the most important factor in any customer loyalty strategy. The better you treat your customers, the more likely they are Financial Results Intent to Return A 5% increase in customer retention can increase Americans are 81% more likely to return to a store that provides quality profits by up to 125%. customer service. to return. 62% Customer Service of Americans join retail loyalty 36% Over 50% of American consumers say that customer service is the top reason they join loyalty programs. actually get the rewards 27% programs for the discounts. they signed up for. never receive rewards at all. 50% One in two organizations use customer feedback to make strategic customer service-related decisions. of loyalty 85% program members never hear a 60% Even in this negative economy, 60% of customers are still O willing to pay extra for a better customer service experience. single word from their loyalty programs after the day they sign up. 817, Four out of five companies who deliver superior customer service experiences are outperforming their competition. 62% of companies measure the success of their customer 62% support through email, chat, web and phone calls. The Future: Customer Delight The game is always changing. Successful companies embrace this change and profit from it. Customer delight means giving customers what they want, even anticipating what they will want, and comunicating with them in the most convenient way. By the end of 2011, there were 73.3 mil- lion smart- phone users By 2015, 79 million users are expected to be using mobile social networks. In 2010, there were 6.2 million smart- phone users in America. By 2014, smartphones will likely make up 43% of the mobile 26% of retail companies have a mobile app. arena. 7% use game techniques to solve problems and engage audiences. 2010 2011 2014 2015 If marketers are looking for 18- to 34-year-olds' receptiveness to branding, social and green issues are a good place to start. 85% of consumers would switch brands because of such marketing and 73% would try a new brand completely. The Bottom Line: Customer Loyalty is important because it drives increased same-store sales. Customer service drives intent to return. Intent to return is the measurable indicator of future same-store sales. For more information, visit us at www.nbrii.com Sources http://www.loyalty360.org/companies/epsilon_member/contributions/the-customer-loyalty-conundrum/ http://loyaltymarketing.com/post/Customers-Want-More-From-Their-Loyalty-Programs.aspx http://fanggle.com/blog/2011/11/04/in-the-know-trends-and-statistics-in-mobile-marketing/ http://www.business2community.com/trends-news/11-key-customer-loyalty-trends-for-2011-03414 http://www.customerservicemanager.com/the-dollar-sense-of-customer-loyalty.htm http://resources.cmocouncil.org/reports/leading loyalty es.pdf

Customer Loyalty: What It Is And Why It’s Important

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Customers are a business’ most important asset, without them the business wouldn’t exist. So it’s imperative to keep these customers happy and improve their loyalty to your business. We created ...

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