I have made it clear in some of my articles that the main reason why you are going customer centric is to gain customer loyalty at minimal cost. You want to make sure that you are not losing customers to competitors. I have said it that it is becoming extremely difficult to get new customers , that is why organizations have to try as much as possible to retain the ones that they have. In this article, I want to explore the concept of customer loyalty and tell you how you can measure the loyalty level of your customers.
What is customer loyalty?
The concept of customer loyalty can be defined as a process whereby your customers remain with you despite competitive offers coming from your closest rivals, your customers so much believe in you that they are not looking at the direction of your competitors. Knowing the loyalty level of your customers will help you to know what they want. You will be able to raise exit barrier for them.
In a product centric enterprise, it is very common to see their employees treating customers as if they are doing them a favour. They do not see any correlation between their Take home pay and what customers are paying for their products or services.
You would have heard the saying that there is only one boss and that is the customer who can sack your entire team by spending his money elsewhere. Customer loyalty is employees’ loyalty. It will make more money for employees’ motivation. It is the reason why employees are coming to work every day.
One thing I want you to know is that if your customers are not satisfied, they are likely to find their level. Customers will not stay with an organization that takes them for granted. You got to create a loyal customer base if you really want to retain your customers.
Measurement of customer loyalty…
As a customer centric enterprise, you must know how satisfied your customers are. One of the loyalty level that we can have is perceptual where it all about the emotional attachment that customers have towards your product or services that is not making them to look in other direction.
There are some customers that are loyal based on their transactional behaviour. This might be based on their purchase behaviour. A good example is someone that likes buying in bulk. Some like buying from you because your products are very cheap. Once you increase the price of your product, they are already out of your lifecycle.
P.S: If you enjoy this article, please help me share it on social media, so as to reach more people with this article. Thanks so much as you are doing this for me.