How Do Your Customers Define Loyalty?

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You know what you want from loyal customers – repeat sales, higher transaction value and referrals, for example – but what do your customers want for their loyalty?

Discounts, freebies and rewards are certainly in the list. For marketers, that could mean a free upgrade with a system installation, a service discount provided through Maintenance Agreement membership or gift cards for referrals. Customers also like coupons in their newsletters.

Along with monetary incentives and free stuff, customers appreciate knowing they have an elevated status. For contractors, that could mean priority service on a repair call for MA members or exclusive repeat-customer discounts. Part of special treatment is also letting customers know you care about their business. According to research from Peppers & Rogers Group, caring counts – and so does a customer-focused attitude. In fact, their studies show:

  • 60% of all customers stop dealing with a company because of what they perceive as indifference.
  • 70% of customers leave a company because of poor service.
  • Customers who feel their salespeople are exceptional are 10 to 15 times more likely to remain loyal.

Also of note, 80% of defecting customers would have described themselves as “satisfied” or “very satisfied” just before they left. And that means, along with discounts and priority service, how your team treats your customers when they interact with them has a sizeable impact on loyalty.

Would you stick around for rude treatment if you had a $20 discount on a repair job? Maybe, maybe not, but there’s no need to ask customers to make that choice – especially when your company’s success is on the line.

Don’t take customer loyalty for granted. There are a lot of enticing offers in the mail, on the airwaves and online. The deals are there to lure them away. Make sure the value you offer is the temptation they need to stay in the fold.

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