Win a Customer for Life by Employing the 5 R’s of Customer Loyalty

 

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The 5 “R’s” of Customer Loyalty

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Ensure Your Company is 5 “R” Customer Compliant

Following the 5 R’s of Customer Loyalty Will Enable Your Company to Attract and Keep Customers for Life

 

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Ensure Your Company is Customer R-Reliable

 

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Top Steps to Ensuring Your Company is R-Reliable

The First “R” of Customer Loyalty Is Setting High Quality Customer Standards (External) and Goals (Internal) and then Delivering on that Customer Promise for Each and Every Customer Interaction as well as the overall & long-term customer relationship

 

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Example of How a Company Demonstrates Customer R-Reliability

 

 

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Example of How a Company Demonstrates Customer R-Reliability (continued)

 

 

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Ensure Your Company is Customer R-Responsive

 

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Top Steps for Your Company to Become Customer R-Responsive

 

The 2nd “R” of Customer Loyalty Is Ensuring That Customer’s Expectations Are Met: Needs, Concerns, Quality, Cycle Time Expectations, etc.

 

Example of How a Company Demonstrates Customer R-Responsiveness

Example of How a Company Demonstrates Customer R-Responsiveness

 

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Example of How a Company Demonstrates Customer R-Responsiveness (continued)

 

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Ensure Your Company is Customer R-Recognizable

 

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Top Steps for Your Company to Become Customer R-Recognizable

The 3rd “R” of Customer Loyalty Is Ensuring That Your Brand and Company has Distinctive and Positive Characteristics such that it drives positive emotions (driving repeat business, customer referrals, word-of-mouth adverting, etc. 

 

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Example of How a Company Becomes Customer R-Recognizable

 

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Example of How a Company Becomes Customer R-Recognizable (continued)

 

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Ensure Your Company is R-Relationship Oriented

 

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Top Steps for Your Company to Become Customer R-Relationship Oriented

The 4th “R” of Customer Loyalty Is Ensuring That Your Brand and Company develops a high quality and mutually beneficial relationship with your customers based on mutual respect, customer insights, an ongoing and open dialogue and a model that encourages a partnership between your brand & company and your customers 

 

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Example of How a Company Demonstrates That It Is Customer R-Relationship Oriented

 

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Example of How a Company Demonstrates That It Is Customer R-Relationship Oriented (continued)

 

 

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Ensure Your Company is Customer R-Rewarding

 

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Top Steps for Your Company to Become Customer R-Rewarding

The 5th “R” of Customer Loyalty Is Ensuring That Your Brand and Company rewards mutually beneficial customer behavior (greater share of wallet, spend, brand partnership activities, etc.) such that it drives further and longer-term customer loyalty.

 

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Example of How a Company Demonstrates Customer R-Rewarding

 

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Example of How a Company Demonstrates Customer R-Rewarding (continued)

 

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Is Your Company Ready to Take the 5 “R” Pledge?

SUMMARY: If you take the pledge above to adhere to the 5 R’s of customer loyalty, you will enhance your ability to attract and retain customers for life. Key to this is developing the capabilities to be best in class for each “R” and ensuring that you are (cost effectively) maintaining a major qualitative advantage in each customer R vs. your competitors.

The Formula for Creating a Positive Chain Reaction with Your Customers and Clients To Win & Keep Them for Life

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Introducing the Theory of Customer-Relativity

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Theory Of Customer Relativity

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Danger – Critical Mass With Your Customers Ahead !

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Relativity – Treat Customer Like Family

Treating customers, clients and guests like your close relatives will create lasting customer loyalty lasting many generations.

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Memorable Guest Experience Formula

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Critical Mass Formula for Customer Excellence

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Derived Benefits from the Customer-Relative Relativity Formula

Following the customer theory of relativity formula can net your company a distinctive customer competitive advantage

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Family Like Customers

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Critical Mass Formula for Customer Excellence

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Listen Intently – Family & Customers

Listen intently to your customers for improvement gifts in order to improve upon your product and service delivery

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Welcome – Family & Customers

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Fulfill Special Requests – Family & Customers

Discovering and fulfilling unmet customer needs is a golden opportunity for you to grow your business

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Made to Feel Welcome – Family & Customers

Leveraging gathered insights can help you surprise & delight your customers by anticipating and pre-delivering (without having to be requested) on customer needs and preferences

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Gather & Leverage Needs & Preferences to Surprise & Delight Your Guests

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Make Your Guests Feel at Home – Family & Customers

Delivering on a company environment that drives a feeling of belonging, contentment, ‘connectedness’ will endear your customers to your company and brand and make them loyal for life

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Ensure the end-to-end guest experience ‘chain’ is optimal, memorable, etc.

Mapping, analyzing and applying continuous improvement to the end-to-end guest experience on an ongoing basis will ensure each step of that experience chain is high quality and optimal

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Hire & Maintain World-Class (1-in-10,000) Customer Ambassadors who treat customers like family

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Summary

Top 3 Keys to Delivering an Exceptional Customer/Client Experience

  1. Hire passionate ‘customer ambassadors’ and empower them to drive your customer & client experience. These ambassadors are typically extremely difficult to find and are generally a 1-in-1,000 find, but if you know you have found one when many of your public reviews mention this person by name as delivering exceptional (family like) customer service.

  2. Adopt a customer/client first set of policies and practices that empower your entire team to make right any customer perceived imperfection, unmet need, etc. in the delivery of your products and/or services. This is similar of how you would go out of your way to ensure your relatives are comfortable when visiting as guests.

  3. To support #2 above, develop a listening & learning system to collect, retain and then deliver on expressed customer/client needs, wishes, preferences, etc. Ritz-Carlton does this extremely well with their guests and it shows in terms of attained customer satisfaction levels.

Summary:

By employing an E=MC² formula and treating your customers comparable to your relatives, you will create a positive chain reaction experience unlike any other and enable your company to leapfrog your competitors. This formula has worked for numerous companies employing those 1-in-a-thousand customer ambassadors who care about customer with all their heart as they do they own relatives.

Managing Customer Life Stages and Events Can Super-Charge Your Marketing Effectiveness

Why Knowing Your Customer’s ‘Life Stage’ & Associated Events are Crucial to Delivering Effective Marketing

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Life Stage Overview

Customer Life Stage Marketing Can Help You Deliver the Right Promotions with the Right Offers, at the Right Time and Via the Right Channel

Here are some important questions to bring into perspective how important it is to track and recognize your customer’s life-stages and events:

  • Would you forget to celebrate a school graduation for an important relative?
  • Would you forget to celebrate the birthday of a spouse or significant other?
  • Would you forget to recognize the birth of the first child of a couple that is close to you?
  • Would you miss noticing the retirement of a person that is very special to you?

If not, then why would you miss these important milestones for your valuable and long-time customers as these all represent significant and extremely meaningful life-stage events for them?!

A Statement on Life-Stage Marketing to Remember: “Marketing without Considering Your Customer’s Life Stages is Comparable to Marketing to Them With A Blindfold On”

For this reason, your segmentation strategy must take into account an array of customer profile variables including customer life stages. The following chart depicts how customers follow normal life stages and are grouped into life stage segments. As customers evolve to the next life stage segment, their consumer spending evolves and generally increases until they reach the most mature life stages. {Click on Chart for a Larger Image}:

Customer Life Stage Segments

Customer Life Stage Segments

As your customers age and evolve through their normal life-cycles, their customer profile changes along with this evolution including:

1) Needs & Preferences

2) Propensity to spend at higher levels 

3) Desire for higher quality products and services

4) Growing insensitivity to higher product pricing in exchange for premium service

The next chart highlights the significant life stage events that are associated when a customer migrates from one life stage segment to another. These are the life-events you should track and recognize in order to build stronger and more meaningful relationship with your customers. Customers have reported that they feel “appreciated” or “valued” 31% more from companies that take the time to acknowledge a significant life stage event vs. those who do not recognize these events.  {Click on Chart for a Larger Image}:

Customer Life Stage Events

Customer Life Stage Events

How do you obtain insights into the above major customer life events? The simple answer is that you ask them. Customers are very willing to share their preferences and life events since volunteering this information builds the potential for a better relationship with your company. This also demonstrates that, as a company, you care and listen to your customers. 

By using preference and life event subscription portals, world-class companies allow their customers take control of their relationship with your company by self-reporting their contact preferences (preferred topics they want to hear about, maximum frequency of communication, preferred communications channels, exception events that allow you to contact them even when there is a previous “do not contact” preference set,  etc.). These same relationship preference portals also allow customers to report either known or as they occur life stage events (birthdays, anniversaries, expected graduation dates, job promotions, etc.) in exchange for being recognized and appreciated (discounts, upgrades) for supplying this relationship enhancing and sensitive information.

The next chart illustrates how customer’s needs for products and services evolves as they migrate through their natural customer life stages. By offering products and services that are right for the customer’s associated life-stage, companies can experience a much higher offer acceptance rates (8-47%).  {Click on Chart for a Larger Image}:

Types of Products Offered Should VMatch Customers Life Stages

Types of Products Offered Should Match Customers Life Stages

The following chart illustrates how your marketing promotions and offers must be in total alignment with their life-stage segment needs.  {Click on Chart for a Larger Image}:

Marketing & Promotional Offers Should Match Your Customer's Life-Stages

Marketing & Promotional Offers Should Match Your Customer’s Life-Stages

The above two charts depict how both products and offers must be in total alignment with your customer’s life-stage in order to be effective. This ensures products/services and marketing offers are at the right time, with the right content and are at the right time and via the right channel (by collecting and managing life-stage channel preferences). {Click on Chart for a Larger Image}:

Customer Life Stages Segments with Matched Products, Offers, Spend

Customer Life Stages Segments with Matched Products, Offers, Spend

Bottom-line: If you are not taking your customer’s life stages and associated events into your segmentation and marketing strategy, then you are marketing with a blindfold on and not recognizing what is most important or relevant to your customers. A large US bank where I implemented this life stage segmentation schema and associated customer life-stage marketing management program witnessed a 25% increase in customer offer acceptance as well as a 18% increase in overall customer loyalty as measured by the reduction of customer defection rates.

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