Customer Loyalty Analysis
Are your targeted customers consistently spending most or all of their budget on your company's goods or services?
Customer Loyalty comes down to building successful relationships to promote profitable customer behaviour. A successful customer loyalty program can have significant commercial impact, delivering increased profitability, improved customer retention, incremental revenue, greater share of customers, lower cost of sale and a medium for more cost-effective marketing.
Customer Loyalty touches every part of the organization from the boardroom, through the channel, to the customer contact point. Customer Loyalty means far more than simply creating points program. It requires skills that cross every corporate function from strategic development and systems to database marketing and customer service. Building successful loyalty strategies requires comprehensive analysis and careful planning.
Customer Loyalty Analysis: Customer loyalty is a bond between a targeted customer and a supplier characterized by the customer consistently spending most or all of its budget on the supplier’s goods or services.
Understanding your business
It is critical to understand the company’s culture and operational issues. A study of external environment with an in-depth analysis of the industry, the market and the competitors within which the company is operating. We then look at the customers themselves, profiling the existing base, identifying potential and defining existing patterns against which to track the impact of future activity.
Step 1: Internal Awareness
Ensure internal management & staff understand the Customer Loyalty Management process
Step 2: Understand the Marketing Issues
A documents review in addition to individual and group interviews to gather the data necessary to articulate hypotheses about market segments and related customer loyalty drivers. This develops a list of potential areas to probe during customer interviews.
Step 3: Understand the Financial Issues
Understanding of fixed and variable costs by market segment and gain agreement on the integrity of the methodology used to calculate profit impact
Step 4: Select Sample
Determine market segments to be studied and build market segmentation model. Determine customers within each segment to be studied and review internal data on past relationship with each potential subject
Building the proposition
After a thorough investigation, we build a loyalty proposition, this will not necessarily be a loyalty program, but it will consist of a set of loyalty drivers/initiatives that will meet the company’s objectives, will fit the specified budget and will be workable within a given infrastructure.
Step 5: Develop Models
Develop Economic Profitability model; Market/Customer Segmentation model; and Customer Loyalty Drivers model
Step 6: Interviews
Get business information on targeted organizations, build into database and determine contacts for face-to-face and for phone interviews and finalize interview schedule and travel logistics
Managing the implementation
With an experienced project management team we also offer full implementation management, drawing up detailed project plans and working with you to ensure a successful launch.
Step 7: Develop Loyalty Driver Database
Assimilating information, categorization & describing customer decision drivers and summarizing information on loyalty driver maps.
Step 8: Report Generation
Produce reports on loyalty drivers and relative impact on bottom line; refine the understanding of Customer Profitability and Market Segmentation aspects.
Step 9: Preview Presentation
Present the key findings and Present Final Report
Step 10: Results Integration to Strategic Plan
Adjustments to the o aid in planning and implementing organization structure and operations changes that support an end goal of increased customer loyalty
Step 11: Monitor Results
Your company benefits from a workable loyalty proposal from loyalty specialists based around a financial business case including full costs and projected returns
Loyal customers add value to the bottom line by:
- Providing a consistent cash flow
- Generating new sales by referring customers
- Paying a price premium
- Buying a blend of products
- Engaging in product development activities
- Reducing the organization's selling and/or servicing costs
