customer choice

What Makes A Loyal Customer?

Decisions, decisions, decisions.

Customers make decisions almost every second about how to spend their time, money, and effort. They are constantly bombarded with ads on TV and their personal devices.  Even NBA jerseys now come with ads on them.  So how do customers make a choice?

Customers, both individually and collectively, select the offer they perceive is best for them, based on their current information and situation. In Business-to-Consumer (B2C) transactions, not only do you have to make a strong first impression, but you have to maintain it or risk customer churn.

A Loyal customer can be defined as customers that continue to prefer a company’s product or service to that of the competition. 

Customer Loyalty, when measured properly, is an indicator of the strength of the relationship with your company. Loyal relationships tend to be deeper and more immune to “bumps in the road.”  They are also more likely to resist the temptations offered by your competitor’s advertising.  As such, Loyalty is not only a static measure of where your customer is today, but also a dynamic measure of where your customer is expected to be in the future

Can you simply ask your customers, “Are you Loyal to us?”  Of course not.  It is also a mistake to assume that a customer is Loyal simply because they continue to purchase from you.  There are many reasons why a customer may continue to make repeat purchases.

Maybe you are simply the cheapest option. Maybe they have a relationship with a single employee, rather than your company.  Maybe your products/services are “adequate” for now.  All of these potential scenarios leave you (and your customers!) vulenerable to a competitor.

LRC uses a set of proprietary techniques to uncover the experiences, both positive and negative, that resonate with customers and what it will take to actually change their behaviors.

Our experience has led us to develop a process which addresses the following issues:

  • Understanding the key experience issues for customers.
  • Identifying specific customer segments.
  • Determining the amount of change that must take place in the experience to change the segment behavior.
  • Developing and implementing action plans that actually change the experience in valuable ways.
  • Communicating these actions to the customer.

Companies should regularly seek input from their customers – by using objective and valid measurement tools and techniques. Let LRC build a customized program that will provide the information you need to understand your customers and their behaviors.

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