customer loyalty and customer retention. 2 outline definition of customer loyalty what affects...
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Post on 25-Dec-2015
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- Customer Loyalty and Customer Retention
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- 2 Outline Definition of Customer Loyalty What Affects Customer Loyalty Relationship programs Customer life cycle Reasons for Lost Customers Customer Retention Strategies Problem Identification and Management Customer complaints
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- 3 Customer loyalty Customers commitment or attachment to a brand, store, manufacturer, service provider, or other entity. The ultimate goal of customer loyalty programs is happy customers who will return to purchase again and persuade others to use that company's products or services.
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- 4 Customer Loyalty Process Key Elements Ongoing process to capture and utilize the Voice of the Customer 1. Listen to key customers 2. Understand the messages 3. Focus on opportunities 4. Take Action Using a company-wide model for Customer Loyalty Measures the strength of the customer relationship Delivers credible, actionable information and is linked to other key business processes Strategy development/validation Customer segmentation (needs based) Continuous Improvement
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- 5 Brand loyalty When consumers become committed to your brand and make repeat purchases over time. Brand loyalty is a result of consumer behavior and is affected by a persons preferences.
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- 6 Relationship commitment An enduring desire to maintain a valued relationship Loyal customers, high in repeat purchase behavior and strong in attitude
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- 7 What affects customer loyalty
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- 8 Customer satisfaction
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- 9 Customer satisfaction, shown by the difference between customer expectations and buying before purchasing the next performance reaction. Ensuring customer satisfaction is a key issue for businesses. Because customer satisfaction creates loyalty.
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- 10 Emotional Bonding Brand affect, brand equity Company attachment Establish feelings of closeness, affection, trust, and respect. Needs, wants, desires
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- 11 Trust Willingness of customer to rely on the organization. Reduces uncertainty/risk Honest, fair, and responsible
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- 12 Choice reduction and habit People have tendency to reduce choice. There can be a switch cost associated with change to the unfamiliar, untried, or the new. There may be cost in time, money, and risk
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- 13 History with the company Corporate Image Contacts and purchase history Service experience Intergeneration influence
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- 14 Relationship programs Customer relationship management,refers to reliable systems, processes, and procedures that allow companies to better manage customer relationships. A successful customer relationship plan can manage all business-related operations and interactions with customers simultaneously.
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- 15 Customer life cycle ACTIVATION WELCOME CALLS START-UP INSTRUCTIONS ADDRESS CHANGES ACTIVATION CONFIRMATIONS SERVICE OUTAGE AND RESTORATION NOTIFICATIONS PROACTIVE SERVICE ALERTS SCHEDULING AND CONFIRMING APPOINTMENTS RETENTION RENEWAL REMINDERS UP-SELL AND CROSS-SELL PROGRAMS PROMOTIONS AND SPECIAL OFFERS COLLECTION LATE PAYMENT REMINDERS FIRST- AND THIRD-PARTY COLLECTIONS ACCOUNT RESOLUTION
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- 16 Reasons for Lost Customers Dissatisfaction Conflict Loss of Trust Cease to need Novelty Seeking Too high of a price Poor product performance Poor customer service
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- 17 Customer Retention Strategies Welcome Reliability Responsiveness Recognition Personalization Reward Strategies
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- 18 A welcome strategy The organizations appreciation for the initiation of a relationship. Creating a delightful surprise, making a good first impression First touch: additional customer information Reassure the buyers that they have made the correct choices.
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- 19 Reliability The organization can repeat the exchange time and time again with the same satisfying results. Keep promise Ensure consistent quality Continuous promotion is still the key.
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- 20 Responsiveness The organization shows customers it really cares about their needs and feelings. Loyal employees create loyal customers. Internal marketing. Customer-contacted employees should have the authority as well as the responsibility for date to date operational activities and CRM decision.
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- 21 Recognition Special attention or appreciation that identifies someone as having been known before. People respond to recognition. Recognition and appreciation help maintain and reinforce relationships.
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- 22 Personalization Use CRM system to tailor promotions and products to the specific customers. Offer engine: take customer data after it is analyzed and applies it to create the offer or message that is appropriate to the individual customer.
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- 23 Reward strategies Customer reward programs are serious business, and if you want to grow your best customers and reap the benefits of true loyalty, you need an outstanding customer reward strategy. A loyalty rewards card program is a good way to start.
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- 24 Problem Identification and Management The best of all possibilities is to identify and eliminate problems before they impact your customers. Build numerous mechanism for identifying customer problems. Customer satisfaction survey Websites, other contacts points
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- 25 Customer Complaints Level of dissatisfaction Attrition of blame Cost/benefits of actions Personal characteristics: highly educated, self-confident, aggressive, Older women.
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- 26 Ali KAYTAN Gizmen NALBANTLI
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