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Article Check - 5 Steps To Effective Customer Loyalty Programs
Have you asked yourself that question lately? I did and I decided the answer was yes. Let me tell you what led up to it.I have been using realtors to purchase some of my investment properties. The Multiple Listing Services can be a great place to find properties, and one has to be a licensed realtor in the US to access them. I’m not sure what the laws are in other countries, so this discussion will be of only the US.Each time I buy a property, the realtor collects almost 3% at the closing, and in order to sell properties quickly, I also list with a realtor and pay almost 6%. I always assumed it was a real pai
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identi
The GD0 record for medical billing of claims using electronic transmission media is a very generic CMN. It is made to be able to handle most pieces of durable medical equipment that needs to be billed. In spite of this, there is still a supplemental record that needs to be transmitted with the GD0 record. Because the record doesn't have enough room for any other information, a GD1 record was created to send the additional information. There are only a few fields but they are critical in getting the claim paid, especially in cases where a narrative explanation is required in order to justify the item being given to the patie
So what to do? Organizations are beginning to understand that it’s not just about satisfaction. In order to improve their businesses they have to implement customer loyalty programs. Customer loyalty programs are different to normal customer satisfaction surveys because the later use outcome as an indicator of past success. The real goal is to understand and improve the areas of the business that drive customer loyalty.
In my experience there are five key steps to implementing good customer loyalty programs.
Step 1: Link customer loyalty to business outcomes
Before you make any investment you need to understand what the potential returns are going to be. The heart of Step 1 is linking your business goals (revenue, profit, market share, growth, whatever) to changes in customer loyalty.
That way you demonstrate the benefits as well as the costs of your customer loyalty programs when you present them to your management.
Start by taking your key business measurements and link them to changes in customer loyalty. If customer loyalty were to increase by 10% how much would profit rise? You can download our free tool to make this task easy or create you own.
Step 2 Find a loyalty indicator
While customer satisfaction surveys are measuring satisfaction at finer and finer levels it is becoming clear that, as a metric, customer satisfaction is not a very reliable measure of loyalty. Customer satisfaction surveys were always intended to be customer loyalty marketing surveys but they are in fact no such thing.
Research is now showing that, depending on your industry, unless your customer scores you in the "top box" in your customer satisfaction surveys, i.e. 5 out of 5 they have little real loyalty to your organization. Lets face it good customer satisfaction is now table stakes -–you have to do better to keep them loyal.
However, recent research (1) has shown that there is one question, the answer to which is a good indicator of customer loyalty. That question is "How likely would you be to recommend us to a friend or colleague".<
It’s simple, straight forward and easy for your customers to understand. But most importantly the answer is closely correlated to customer loyalty and business profits. This question should be in all of your customer loyalty marketing surveys as a key outcome indicator.
Step 3: Identify the drivers of customer loyalty
Every business has a range of attributes that might impact on customer loyalty. If you’re in financial service it could be areas like service fees, line lengths in branches, product features, etc. If your business is a physical product they might be delivery times, stock holdings, and order quantities.
Starting with the one question above, add questions about these different potential drivers of customer loyalty to your customer loyalty marketing surveys. Don’t add too many. Maybe 10 or 15 and make sure that you use a rating scale to collect the customer perception of your performance.
Now comes the most important part: find someone to do some reasonably statistical analysis on your results to determine which of the drivers are most significant in terms of customer loyalty. There are a few different techniques but correlation and regression analysis are the most common.
Step 4: Implement your customer loyalty programs
Now you have the vital information that you need: you understand the state of customer loyalty and you understand which of your business attributes are most important to that loyalty.
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identif
What would life look like if we stopped for just a moment and took a break from the pace of our daily lives and asked ourselves what we wanted? Would the response be, more of the same, less of the same, or perhaps, something completely different?Listening to the voice of our wise heart and the messages it offers is simple. However, we make it hard to “take” the time to be with our true selves. The precious insights we have about life can be discovered in challenging times, quiet times and joyful times. Dawn Brown, Author of That Perception Thing!, reminds us that we can learn through pain, or we can learn through joy. T
Before you make any investment you need to understand what the potential returns are going to be. The heart of Step 1 is linking your business goals (revenue, profit, market share, growth, whatever) to changes in customer loyalty.
That way you demonstrate the benefits as well as the costs of your customer loyalty programs when you present them to your management.
Start by taking your key business measurements and link them to changes in customer loyalty. If customer loyalty were to increase by 10% how much would profit rise? You can download our free tool to make this task easy or create you own.
Step 2 Find a loyalty indicator
While customer satisfaction surveys are measuring satisfaction at finer and finer levels it is becoming clear that, as a metric, customer satisfaction is not a very reliable measure of loyalty. Customer satisfaction surveys were always intended to be customer loyalty marketing surveys but they are in fact no such thing.
Research is now showing that, depending on your industry, unless your customer scores you in the "top box" in your customer satisfaction surveys, i.e. 5 out of 5 they have little real loyalty to your organization. Lets face it good customer satisfaction is now table stakes -–you have to do better to keep them loyal.
However, recent research (1) has shown that there is one question, the answer to which is a good indicator of customer loyalty. That question is "How likely would you be to recommend us to a friend or colleague".<
It’s simple, straight forward and easy for your customers to understand. But most importantly the answer is closely correlated to customer loyalty and business profits. This question should be in all of your customer loyalty marketing surveys as a key outcome indicator.
Step 3: Identify the drivers of customer loyalty
Every business has a range of attributes that might impact on customer loyalty. If you’re in financial service it could be areas like service fees, line lengths in branches, product features, etc. If your business is a physical product they might be delivery times, stock holdings, and order quantities.
Starting with the one question above, add questions about these different potential drivers of customer loyalty to your customer loyalty marketing surveys. Don’t add too many. Maybe 10 or 15 and make sure that you use a rating scale to collect the customer perception of your performance.
Now comes the most important part: find someone to do some reasonably statistical analysis on your results to determine which of the drivers are most significant in terms of customer loyalty. There are a few different techniques but correlation and regression analysis are the most common.
Step 4: Implement your customer loyalty programs
Now you have the vital information that you need: you understand the state of customer loyalty and you understand which of your business attributes are most important to that loyalty.
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identi
Who knew that a retailer's once-valuable and suitable point-of-sale system would become as useless as an old, antiquated typewriter? And then curse the day they got it? It happens. And worse, it keeps them operating at lower standards than other retailers who have stepped up to better technology.Technology always changes the way we work and the way our business works. It isn't just about performing our business functions better either. It's also about servicing the needs of our customers better. And it takes today's retail technology advances to help achieve this because it didn't exist cohesively before.So, chanc
Research is now showing that, depending on your industry, unless your customer scores you in the "top box" in your customer satisfaction surveys, i.e. 5 out of 5 they have little real loyalty to your organization. Lets face it good customer satisfaction is now table stakes -–you have to do better to keep them loyal.
However, recent research (1) has shown that there is one question, the answer to which is a good indicator of customer loyalty. That question is "How likely would you be to recommend us to a friend or colleague".<
It’s simple, straight forward and easy for your customers to understand. But most importantly the answer is closely correlated to customer loyalty and business profits. This question should be in all of your customer loyalty marketing surveys as a key outcome indicator.
Step 3: Identify the drivers of customer loyalty
Every business has a range of attributes that might impact on customer loyalty. If you’re in financial service it could be areas like service fees, line lengths in branches, product features, etc. If your business is a physical product they might be delivery times, stock holdings, and order quantities.
Starting with the one question above, add questions about these different potential drivers of customer loyalty to your customer loyalty marketing surveys. Don’t add too many. Maybe 10 or 15 and make sure that you use a rating scale to collect the customer perception of your performance.
Now comes the most important part: find someone to do some reasonably statistical analysis on your results to determine which of the drivers are most significant in terms of customer loyalty. There are a few different techniques but correlation and regression analysis are the most common.
Step 4: Implement your customer loyalty programs
Now you have the vital information that you need: you understand the state of customer loyalty and you understand which of your business attributes are most important to that loyalty.
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identi
Have you ever sat in front of your computer looking for a document – knowing it was there – the question is: “Where?” The answer gets amazingly complicated if the document is an attachment someone sent to you from someone else’s e-mail account!In addition to organizing the additional paper that results from our new technology, we now also have to organize the technology itself. Did you know that 80-95% of the information we work with daily is generated by email and electronic files?How Computer Filing WorksYour computer is basically an electronic filing cabinet. This is true regardless of
Starting with the one question above, add questions about these different potential drivers of customer loyalty to your customer loyalty marketing surveys. Don’t add too many. Maybe 10 or 15 and make sure that you use a rating scale to collect the customer perception of your performance.
Now comes the most important part: find someone to do some reasonably statistical analysis on your results to determine which of the drivers are most significant in terms of customer loyalty. There are a few different techniques but correlation and regression analysis are the most common.
Step 4: Implement your customer loyalty programs
Now you have the vital information that you need: you understand the state of customer loyalty and you understand which of your business attributes are most important to that loyalty.
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identi
As it was, Walmart was a wonderful part of my life. For a short while I sincerely believed what I was told and even if I had my doubts I pushed them aside because the company that I grew to love seemed to be something I had never come across in almost twenty five years of retail.Now with a book about it written and the possibility that it may be too controversial for anyone to print, I may have to do it myself.It has to be written. It has to be published. It is a promise that I made to myself and so many wonderful Walmart Associates that I worked with over the years.Seriously, I thought if I could talk t
Start by focusing on just a few of the most important drivers that you also believe that you can change and start making changes in your business.
Perhaps you have found that line lengths in your branches are a key driver of customer loyalty. Work with your staff to identify ways to change you business processes and reduce line lengths. Make sure that you align staff compensation plans and bonuses so that the changes you make will be permanent.
Once you’ve improved the most important areas move on to those that are less important.
Step 5: Re-survey your customers
Remember that the goal is to improve customer loyalty. Marketing surveys repeated at regular intervals will let you know how you’re customer loyalty programs are doing on both customer loyalty and the important drivers of customer loyalty that you have identified.
(1) "The one number you need to grow", Frederick Reicheld, Harvard Business Review December 2004.
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