CUSTOMER LOYALTY August 2015

Customer Loyalty What is customer loyalty about? What does it mean?

Customer loyalty – a few quotes “A standard for business”. “ You do not want satisfied customers, you want loyal customers. And the only way they will be loyal is if the quality is the highest level possible” “If they constantly and never endingly improve their quality and services, they would become a dominant power.” “If they would increase their quality, quality would always cost less.” “An obsession with cutting costs and increasing revenues would eventually destroy most companies” from Dr W. Edwards Deming, 1950 – reference from Tony Robbins (CANI process)

Customer loyalty – a few quotes “It will not suffice to have customers that are merely satisfied. An unhappy customer will switch. Unfortunately, a satisfied customer may also switch, on the theory that he could not lose much, and might gain. Profit in business comes from repeat customers, customers that boast about your product and service, and that bring friends with them. Fully allocated costs may well show that the profit in a transaction with a customer that comes back voluntarily may be 10 times the profit realized from a customer that responds to advertising and other persuasion.” from Customer Retention, 1995, Deming

Customer loyalty – a few quotes “The result of long-term relationships is better and better quality, and lower and lower costs“The result of long-term relationships is better and better quality, and lower and lower costs” from Customer Retention, 1995, Deming

Customer loyalty What is customer loyalty about? Looking after the customer Communication Customer experience Reward loyal customers Lifetime value

Customer loyalty Is customer always right? Stats show us that Customers cause 33% of the problems they complain about Only 1 customer in 25 will tell you when they have a complaint. 96% of customers will not tell you but they will tell others! 63% will not come back, 56 to 70% will if the complaint is resolved to their satisfaction. 95% will come back if resolved immediately.

Customer loyalty Customer loyalty and profitability? The typical business loses 10% of it’s customers a year, but by cutting that by just 5%,profits increase by % From /tomorrow_people/slideshare-5-tops-tips-for-improving-customer- retention?

Customer loyalty Customer loyalty and profitability? It’s important to get it right as, according to Gartner (research group),80% of your future profits will come from 20% of your current customers ww.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for- entrepreneurs/

Customer loyalty Customer loyalty and perception? According to statistics provided by Bain and Co. in the Harvard Management Update, 80% of companies surveyed said that they offer superior customer service, but only 8% of their customers agreed with them. Management ww.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for- entrepreneurs/

Customer loyalty Customer loyalty and experience? Remember that customers tell other people about bad experiences 7 times as much as they would if they had a good experience! and 68% of lost customers don’t return due to poor customer service…

Customer loyalty – a few quotes “ “The result of long-term relationships is better and better quality, and lower and lower costs ” “The result of long-term relationships is better and better quality, and lower and lower costs W. Edwards Deming

Customer retention From searchcrm.techtarget.com

Lifetime value

CRM Cycle