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Archive for the ‘Loyalty’ Category« Previous Entries Next Entries »Marketing TidbitsWednesday, July 14th, 2010  A variety of random figures and stats, which marketers everywhere might find interesting, were spotted recently in Deliver – a magazine for marketers produced by the United States Postal Service. As ever, we like to pass on useful information to our readers so, in no particular order, these include:
Sources: Creating Customer LoyaltyTuesday, May 18th, 2010  Although there is clearly a link between customer satisfaction and customer loyalty, a satisfied customer may not actually always be a loyal one. Still, there is no doubting that every business wants to achieve as many loyal customers as possible. You could be forgiven for thinking that loyalty card schemes – such as those operated by many supermarket chains – are all about creating loyal customers (the more cynical among you might say they are purely for collecting data on said customers…). However, new YouGov SixthSense research in fact indicates that loyalty card programmes are not creating customer loyalty for retailers. More than 90% of shoppers surveyed for this study would not stop shopping at a retailer if they scrapped their loyalty card scheme, and only 17% choose where to shop based on such schemes. What’s more, in spite of the widespread use of loyalty card programmes, half of shoppers don’t think it’s worthwhile to collect points and would prefer to convert points into a money-off discount at the till. A quarter would rather retailers offer more promotional deals and one in ten rarely redeems points even if they have collected them. To discover better ways of ensuring customer loyalty, read our white paper: Loyalty – How to Win Devotion from your Customers Customer Loyalty and SatisfactionTuesday, October 27th, 2009 
On the customer satisfaction page of our website, we state the following: “Most companies lose 45% to 50% of their customers every five years, and winning new customers can be up to 20 times more expensive than retaining existing customers. Just a 5% reduction in the customer defection rate can increase profits by 25% to 85%, depending on the industry.” There can be very little doubt that retaining your existing customers – especially those most profitable ones – is vital under any economic conditions; never more so than when times are tough. Indeed, as reported in CCF Online, customer service author Colin Shaw, who spoke at the recent Call Centre Expo, is adamant that a recession is the ideal opportunity to galvanise customers and create strong customer loyalty. While competitors may allow customer service to take a back seat when times are tough, now is the opportunity for you to focus on improving the experience of your customers. According to Shaw, some of the key questions we as companies should be asking are:
Some telling stats reveal that many companies only have themselves to blame when it comes to customer churn. On average, of the customers that leave, it is because:
This would indicate that four out of every five customers leave because of the actions – or inactions – of the company. Ironically it can be small things – which are more often than not easy to action – that go a long way towards making a customer feel valued, keeping a customer happy and, more importantly, encouraging their loyalty. Don’t overlook the importance of keeping your customers satisfied. Why not read more about this subject in the following white papers:
Better still, call or e-mail us to see how our tailored customer satisfaction programmes can help you maintain customers for life. Centre Stage For Customer LoyaltyThursday, May 7th, 2009
Focusing on customer satisfaction and loyalty is important at the best of times. Right now, when times are tough in many industry sectors, developing a loyal customer base is even more vital to business survival. We at B2B International always extol the virtues of customer loyalty. And, on the face of it at least, it would seem that customer loyalty is on the rise – that is if membership figures for loyalty rewards programs are a good indication of a wider trend. According to new figures released by Colloquy, membership in U.S. loyalty rewards programs has now reached 1.8 billion, which amounts to a 24% increase on their last loyalty marketing industry census published two years ago. The average U.S. household has signed up for 14.1 loyalty programs – from financial services, airlines and hotels to department stores, restaurants and much more – although it should be noted that the average household only actively participates in 6.2 schemes. However, don’t fall into the trap of just reading the headline figures. The emphasis for any company should not be to concentrate solely on increasing membership numbers. It must be to focus on creating and developing a program that offers value, which can revive lapsed members and can turn its engaged members into profitable, loyal customers. While loyalty schemes are obviously not appropriate for all organizations – especially those in industrial and b-to-b sectors – the underlying principles remain the same. It’s a well known fact that it’s more cost-effective to retain existing customers than to find new ones. Listen to your customers; find out if they are satisfied and if you could be meeting their needs better. Whilst customer satisfaction may not necessarily lead to customer loyalty, it’s a valuable first step in the process. The white paper Loyalty – How To Win Devotion From Your Customers makes an interesting read for anyone wishing to find out more about customer loyalty. Increasing Sales In Challenging Times, part 1 of 3Tuesday, March 31st, 2009
The American Marketing Association’s flagship publication, Marketing News, recently ran an article entitled ‘Look Farther Afield, which described how research should answer certain questions for marketers hoping to expand into new markets. This feature was contributed by B2B International’s very own Julia Cupman. Julia’s full original article is serialized over our next 3 blog entries: The recent economic turmoil involving long established financial pillars has had a resounding impact on business. Many companies have experienced declining sales and confidence in the economy is dwindling. Numerous economists are claiming that it is the worst financial crisis since the Great Depression, but while the seriousness and consequences of the problem cannot be denied, it is only an economic stymie if businesses allow themselves to lose confidence and focus. The fear invoked by the Wall Street tremors has led to a fierce slashing of budgets, in particular marketing budgets. Why are marketers feeling the pinch with decreased spending power when it is such a crucial time to understand customers’ requirements and meet their needs before they potentially defect? Indeed, just a 5% reduction in the rate of customer churn can increase profits by as much as 85%. Given that most businesses lose around half of their customers every five years, it is frightening to think how many customers have been lost in the past few months alone as a result of the faltering economy. The case is already clear: do nothing, and suffer. The drive towards lower costs and consequently lower prices is increasingly resulting in the substitution of value with low price – an area where not everyone can compete as profit margins are squeezed dry. In fact, a company that seeks refuge in cutting its prices may fatally delineate its own downfall as it could devalue its offering and denigrate its brand. It is thus paramount that in times of a weak economy, businesses seek proactive means of remaining competitive, and cutting prices may not be the answer. This begs the question as to what companies – especially their marketers – can do to give their business a welcome lift in times when the only direction appears to be downward. Sell moreThis may seem absurd when it is challenging to simply retain customers and to ensure that turnover and profits do not slip. So how can selling more be possible, and in what way is it a panacea? It is necessary to think outside the box. With sell more, think sell elsewhere, think sell farther afield, think new opportunities. Of course entering new markets is not appropriate for all companies, but it is an option that many companies could consider, particularly if they are faced with stagnating demand domestically. Thus, if growth is not occurring locally, chase it internationally. The growth forecast for China next year, for example, stands at 9.5%, contrary to 1.8% for the EU. Indeed the BRIC countries (Brazil, Russia, India and China) offer a plethora of opportunities as labor is often cheap and readily available, investment is increasing and the prospects look good. Consider Russia and the helicopter industry, for instance. AgustaWestland is currently researching the opportunities in Russia, and Textron Bell has just signed up a new sales representative (Jet Transfer) in Russia which has committed to sales valued at over US$10 million. These two players have recognized an unmet need and a clear opportunity, as only half of Russia’s civil helicopters are in flyable condition and domestic production is limited. This article, which goes on to describe many of the questions that marketers should ask in order to explore, scope and define market expansion opportunities, continues tomorrow. « Previous Entries Next Entries » |
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