1. Build staff loyalty

It's a fact: firms with high levels of customer loyalty have also earned high levels of staff loyalty. It's darn near impossible to build strong customer loyalty with a staff that is in constant turnover.

Why? Because customers buy relationships and familiarity. They want to buy from people who know them and their preferences. Key rule of loyalty: serve your employees first so that they, in turn, can serve your customer.

2. Practice the 80/20 rule

In building customer loyalty, the 80/20 rule is alive and well. Roughly speaking, 80% of your revenue is being generated by 20% of your customers.

All customers are not created equal. Some represent more long-term value to your firm than others. A smart company segments customers by value and monitors activities closely to ensure high-value customers get their fair share of special offers and promotions. Unlike many firms that simply measure overall redemption, these savvy loyalty builders pay close attention to who redeems.

3. Know your loyalty stages and ensure that your customers are moving through them

Customers become loyal to a company and its products and service one step at a time. By understanding the customer's current loyalty stage, you can better determine what's necessary to move that customer to the next level of loyalty. There are six stages of customer loyalty: suspect, prospect, first-time customer, repeat customer, client and advocate.

Sign up for free to read the full article.

Take the first step (it's free).

Already a registered user? Sign in now.


image of Jill Griffin

Jill Griffin is an executive trainer (jillgriffin.net) and author.