Friday, April 3, 2009

What impacts Customer Loyalty?

To answer this question, you must first define Customer Loyalty.

Customer Loyalty is measured in terms of:
  • Likelihood to return
  • Likelihood to spend more
  • Likelihood to refer and spread positive experiences
So what behaviors by your company will drive these behaviors by your customer?

Believe it or not, it's more about what you don't do. To drive customer loyalty, you need to go back to the concept of customer effort.

  • How are you reducing transfers?
  • How are you preventing your customer from repeating themselves?
  • How are you reducing multiple (if any) contacts?
  • How are you navigating their call to the right agent?
  • How are you reducing the time to resolve an issue?
There are also opportunities to impress your customers by leveraging their information and previous behaviors and acknowledging them as individuals by doing so.

  • Are you anticipating the reason they called and acknowledging past behavior?
  • Are you educating your customer on how to make their lives easier going forward or how your processes work?
  • Are you demonstrating transparency with your business practices and policies?
  • Is your agent truly acting as an advocate of the customer?
  • Are you offering the customers choices in the options to resolve and providing them pro's, con's, and recommendations.

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