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As a business person, you want customers to do something. You want them to buy something, sign up for your newsletter, visit your web site or refer someone to your company. And you want them to do this over and over, time and time again. Your goal is to create a long-term, repeat customer that generates strong profits.
Customer satisfaction programs and measurements do not accomplish this objective. A customer can be perfectly satisfied yet shop elsewhere. That’s why simply measuring customer satisfaction is not the performance indicator you want as the focus of your business.
Customer loyalty refers to the tendency of a customer to choose one business or product over another. Loyalty becomes most evident through the choices made by and actions taken by customers. Loyalty is the best indicator of a customer’s future tendency to take your desired business actions.
Customer satisfaction does not equate to customer loyalty. Think about the places you’ve eaten at in just the past year. How many have you been satisfied with only to never return?
“Customer loyalty” has become an end-all term for approaches that utilize customer data. CRM, Permission Marketing, Database Marketing and Relationship Marketing, to name just a few, are all about creating customer loyalty. These programs are all designed to get a customer to interact more with your business, usually in the form of buying more or visiting more. The goal of these programs is to a) retain customers and b) increase the lifetime value of customers.
Right On – No Bull Marketing helps small and mid-size service and retail companies increase lifetime customer value and customer loyalty. If you are interested in seeing how we could help your company, complete our privacy assured online form for a free consultation.