Posted on: 09 June 2015
Customer loyalty is about more than just customers being either loyal or disloyal
Building customer loyalty is about using customer relationship management strategies to move customers from purchasers to advocates and eventually ‘raving fans’. The ‘loyalty ladder’ shows the direction of movement you’re trying to achieve:
- Purchasers are those people who have bought something from your business on one occasion.
- Customers have bought from you more than once.
- Members feel more involved in what you are doing than just buying what you sell. They now have a relationship with you.
- Advocates will say good things about you if they are asked to recommend what you sell.
- Raving fans don’t need to be asked to recommend you. They proactively tell others about how great you are.
You are striving to build a group of raving fans for your business because, as Shweta explains, they deliver three types of value:
- “Directly the business that they provide you and the constant, repeat business they bring from being one of your fans.
- The business that they have sent your way by referring you to other clients that now buy from you.
- The compounding effect that their talking about you has led to others talking about you and contributing to your business.”But how do you know your raving fans are there and how do you make the most of them?
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