Customer Loyalty: It all counts!!!

Do you have Loyalty Data?

• Do you know what makes a good customer?
  • Loyal, high value, cross buyers, up-traders
• Do you know what makes a bad customer?
  • Fraud, poor payers, early cancellers, tyre kickers
• Up grading usually depends on change
  • In life style, economy, social factors – what triggers it?
• Do bad customers stay lost?
• Good customers will give you information to help you manage them

Some Things You Have to Know :

• To manage loyalty you have to know who your customers are
• Whether they are worth holding onto
• Whether it is feasible to hold on to them
• Implies that you can sustain a customer relationship policy
  and . . .
• That this is consistent over time and between products

Some Things You Have to Learn :

• Customers will respond to loyalty schemes but they do not all work in the same way for all products
• Not all customers respond in the same way
• Not all customers require the same service
• Segmentation by response and buying behavior is important – it can save a lot of money

Who are Good Customers?

• Buy for value, not for price
• Have good, long term value
• Complain “reasonably”
  • and don’t talk too much!
• Responsive to marketing communications
  • Respond, give information and enter into
    deeper (closer) marketing relationships

Who are the Bad Customers?

• Broadly the opposite of the above +
• Dishonest
• Multi-sourcer
• Hyper transacter
• Rule breaker
• Persistent
  • • Complaints, queries,
      demands for service

  Key Focus Areas

  • • • Find valuable (actual and potential) customers
      • Acquire valuable customers
      • Get valuable customers securely on board
      • Develop valuable customers
      • Keep valuable existing customers
      • Get to know actual and potential customers better
      • Develop value for valuable customers and . . . .
        arrange value chain to deliver it

  

  Hope the above information is valuable to you.

  Shailendra