Customer Satisfaction, Loyalty and Profit – Understanding the Links (Part-1)
As a relatively broad sort of outreach strategy, customer focus is something that is different for every business. Achieving a customer focus is not a one-size-fits-all solution.
With the rise of price-hungry and savvy shoppers, it is becoming increasingly challenging for operators to secure the loyalty of their customers and Differentiate themselves in a highly commoditized market.
Is it in fact possible to achieve emotional customer loyalty in telecoms? How do you differentiate yourself in the market beyond price? And, how do you increase the profitability of your customers and ensure an ROI from the loyalty programmes you do invest in?
Customer Focused Market
• Profitability: comes from loyalty. It’s more profitable to retain old customers than to acquire new ones. Cross selling other products along with the main product, could be a very enthralling technique of gaining profitability. Go after a more narrow market and get more from each of that customer that were being targeted.
• Loyalty: if you do it right can be very profitable. Keep delivering value over time, as in today’s rising social media influence, we have a connected community. So, always keep that in mind, if not handled your social media presence, it could ruin your reputation. A brand is no longer what a company says it is to its customers. It is what customers say to each other.
• Deliver: top notch customer experience and value in a disciplined manner and be very flexible according to the market.
Why Should You Worry About Customer Commitment?
Committed customers have been shown to demonstrate a number of beneficial behaviours, for example committed customers tend to:
• Come To You: One of the key benefits of establishing a good level of customer loyalty is that you don’t have to sell to them; they will come to you when they need a product or service, and they may even come on spec to see if you have new products.
• Buy More Often: Loyal customers come back more and more often, since they enjoy the service they receive from you. If customers find themselves forced to use you against their will they will come as little as possible.
• Try New Products: If customers are happy with what they’ve bought from you before, they will be more willing to try new products. Perhaps they will even trust you to suggest products suitable for them (cross-selling).
• Recommend You: Loyal customers can become your most effective marketing tool (far more trustworthy than salesmen in the eyes of other customers) and they’re free.
• Buy Only From You: A strong relationship of trust can mean that customers will prefer you even if it is more difficult or more costly to use you than a competitor.
• Look Only At You: The holy grail of customer loyalty – customers at this stage trust you to provide a good product/service at a reasonable cost, and will not go to the trouble of shopping around before buying.
The purpose of Business is to create and keep a customer, for that you must have a Focused, Cost Effective, Marketing strategy which is executed consistently with total accountability. The future for companies is to balance this product focus with a customer focus so that customers feed directly into decision making and are not an afterthought.