What is Customer Loyalty Research?
Customer loyalty research answers "Will
customers re-purchase or switch to the competition?"
The Benefits of Loyal Customers
Loyal
customers are the most profitable customers because they
create
-
revenues from
increased product and service buying
-
revenues from price
premiums
-
revenues from referrals
-
customer acquisitions
cost savings through increased word-of-mouth sales
-
productivity cost
savings
Loyal customers feel comfortable, they trust
you and are more forgiving than one-time customers. Hence,
they are a pleasure to deal with.
Overall, customer loyalty research yields
information that helps a company to:
-
better plan their
business, marketing and sales activities
-
safeguard and
increase its revenue streams
-
safeguard and
increase its customer base
-
optimize costs of
sales
-
increase brand value
-
adjust competitive
strategies
-
speed adoption of new
products
How do you create loyal customers? By
fully satisfying them in all areas that are important to them.
To build customer loyalty economically, it is
important to know which attributes build loyalty and which
ones don't. Improving important attributes yield the desired
effect and prevent money to be spent on improving unimportant
attributes.
Customer retention is NOT always customer loyalty. Customers may be
forced to buy from a company for a variety of reasons such as
legal, political, access etc. These strategies may lead to customers feeling
trapped when implemented without paying attention to customer
satisfaction. Obviously, the payback from loyal customers does
not apply to trapped customers, which will switch at the first
best occasion.
Customer Loyalty Research
Steiner
Marketing offers a loyalty gap analysis that offers
information on the importance and persuasiveness of each
attribute, which attributes need to be improved and which ones
exceed expectations. Customer loyalty research focuses on the
following aspects:
-
How satisfied are
your customers?
-
Determine persuasive
attributes to customer loyalty.
-
Develop a Gap
Analysis for all attributes.
-
Develop strategies to
address loyalty gaps in a cost-effective way.
Research Methodology
Customer loyalty research is implemented with
surveys that are executed either through the web, by phone,
fax, or mail.
Get Your Questions Answered
If you have any questions about customer
loyalty, give us a call or
send us an email.
We will be happy to answer your questions.
Other Market Research from Steiner
Marketing
|
