How the Best Brands Build Lasting Customer Loyalty

How the best brands build lasting customer loyaltyAdrian Swinscoe

Author & Consultant

Housekeeping

Outside : In Inside : Out

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Adrian SwinscoeAuthor & Consultant

Adrian Swinscoe is a customer experience consultant and advisor, and has been growing and developing customer-focused large and small businesses for 20 years. He has previously worked with Shell, FT and The Economist Group as well as advising and consulting numerous other large organisations as well hundreds of smaller businesses to help them engage with their customers, build their customer retention and improve service. Adrian has an MBA from Cass Business School, City University as well as an MA in Economics. You can find out more about Adrian at www.adrianswinscoe.com and via his Forbes column www.forbes.com/sites/adrianswinscoe/

Say Hi on Twitter @adrianswinscoe

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http://www.forbes.com/sites/adrianswinscoe/

http://twitter.com/adrianswinscoe

• Consultant, workshop leader & speaker• Large and smaller businesses• Interviewed 170+ authors and business

leaders• Columnist for Forbes• Just published a book with Pearson

What is customer loyalty?

©2015 QUALTRICS LLC.

“Likelihood of previous customers to continue to buy from a specific

organization. Great attention is given to marketing and customer service to

retain current customers by increasing their customer loyalty. Organizations

employ loyalty programs which reward customers for repeat business.”

Source: http://www.businessdictionary.com/definition/customer-loyalty.html

http://www.businessdictionary.com/definition/customer-loyalty.html

Acquisition, retention, focus & churn • 40% of companies are more

focused on acquisition than retention

• 15% are more focused on retention

• 45% have an equal focus on acquisition and retention.

• Where’s your focus?

• Average churn rate for B2B industries in the USA, UK and across Europe was around 11% per year, with the highest average reaching 24%.

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Why do customers ‘churn’?


• Pitney Bowes found a range of reasons why customers churn (in order of descending importance):

• Slow customer service • Late delivery of service • Doesn't ask about customer needs • Not in touch • Not told about updates and developments • Call centre can’t answer questions • Doesn't recognise my value • Irrelevant marketing • Only email queries allowed • No online self-service • Low marketing, low visibility

Source: https://www.flickr.com/photos/60057912@N00/5398973509/

Most loyalty schemes don’t work

• 96% of consumers would be tempted to switch by a good price promotion

• 20% of consumers would switch if offered a better loyalty programme

• 68% of customers said they were members of supermarket loyalty schemes but only 47% of them said they were loyal

• An incentives-based ‘loyalty programme’ is no guarantee that your customers will remain loyal.

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Who should be loyal to who?


• When we say loyalty what do we mean? • When asked about loyalty programmes:

• 73% of customers believe that they should be a way for brands to show how loyal they are to them as a customer

• But• When asked a similar question, 66% of

marketers believed that it should be the other way round and that loyalty programmes are there for customers to show how loyal they are to brands.


What drives loyalty?

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“Loyal customers understand that there’s almost always something better out there, but they’re not so interested

in looking.” Seth Godin

• Loyalty has a number of elements to it, including:• Shared cause or interests;• DWYSYAGTDWYSYAGTDI;• Showing up regularly;• Forgiveness;• Owning up to mistakes and apologising;

and• Acting in the best interests of those whose

loyalty you are trying to earn.

• We can see from this list that loyalty has large emotional and behavioural elements to it and often loyalty is not given it is earned.

• Therefore, to earn loyalty we, first, we have to become the person or the business that people would want to be loyal to.

What drives loyalty? (2)


• Loyalty expert Steve Sims, Chief Design Officer & Founder of Behavior Lab at Badgeville believes that:• Many loyalty programmes are designed the

businesses benefit and fail to take into account what customers want.

• The best loyalty programmes understand their customers as people, their motivations, their context and frequency and not as ‘wallets’.

• Loyalty is a lot like a habit. • However, even good loyalty programmes

suffer from habituation.Source: https://www.flickr.com/photos/123780959@N07/14012595748/

Where do you earn loyalty?


• 49% - loyalty was earned at the point of purchase/service

• 40% - loyalty was also earned when they had a customer service issue that needed to be dealt with.

• Opportunities to generate loyalty exist across the customer experience

• These opportunities should be identified and customer experience designed to maximise those ‘loyalty’ moments.


The DNA of successful loyalty programmes


• The best programmes tend to focus on the groups of customers that: • Can have the greatest impact on any business i.e. the

most valuable ones; • Those with the highest potential; and • Those that at are the risk of leaving.

• The most successful loyalty programmes have the following characteristics in common:• Clarity on what they are trying to achieve • Use data to find their most valuable customers• Build variegated loyalty programmes


The key to generating loyalty


“It's not how much we give but how

much love we put into giving.”

Mother Theresa

Purpose


Last words

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•Where is your focus?•Who is being loyal to who?•Loyalty is much more than a programme

•Customers are so much more than “wallets”

•What are you doing that enhances the customer’s own story?

Thank YouSource: https://www.flickr.com/photos/13878904@N00/396848298/

My Contact Details

If you would like to discuss any of the content today please get in touch:


Mobile: +44(0)7971 608821

[email protected]

https://twitter.com/adrianswinscoe

https://www.linkedin.com/in/adrianswinscoe


https://twitter.com/adrianswinscoe

https://www.linkedin.com/in/adrianswinscoe

How the Best Brands Build Lasting Customer Loyalty

Business

Transcript of How the Best Brands Build Lasting Customer Loyalty