The Customer Loyalty Ladder

Customer Loyalty Ladder

Teguh PrayogoTwitter : @teguh_trainer

• Suspect

• Prospect

• Customer

• Client

• Advocate

CUSTOMER LOYALTY LADDER

Suspect

Prospect

Customer

Client

Advocate


Suspect

Prospect

Customer

Client

Advocate


• Suspect

Anyone who reads or hears an ad, looks at a brochure or encounters some other type of promotion is a suspect

• Prospect Someone who pays attention to your

promotion


Suspect

Prospect

Customer

Client

Advocate


• Customers

Those who buy your product or service

• Client

A Customer who buys a second time

• AdvocateA Customer who gives unpaid advertising for the products / services of a business



It takes a least 3 times as much money to attract a

new customer via traditional forms of advertising as

to re-attract a repeat customer

FACTS :


It takes at least 30 times as much marketing

money to attract a new customer via

traditional forms of advertising as to have a satisfied customer

find new customers for you

FACTS :


FACTS :

Most business owners spend less than 5% of their

marketing dollars on their customers and spend

95% of their marketing dollars trying to find new

customersTeguh PrayogoTwitter : @teguh_trainer

5% Marketing Rp

95% Marketing Rp

Suspect

Prospect

Customer

Client

Advocate

TRADITIONAL INVESTMENT


A great marketing company spends

money here

Suspect

Prospect

Customer

Client

Advocate

ADVERTISING INVESTMENT

Non Traditional Advertising

Most marketing company spends

money here

Traditional

Advertising


To Keep Customers:30% Marketing Rp

To Find Customers:70% Marketing Rp

Invest in Keeping Customers

Suspect

Prospect

Customer

Client

Advocate

Recommendation

30% of your marketing Rp should be

spent on keeping customers.

Keeping them happy.

Not 5 %

Goal :

Invest in developing

satisfied customers



How can You Accomplish This?

• Know who your customers are

• Know that your best customer is your most recent satisfied customer

• Know that your best word-of-mouth advertising comes from your most

recent satisfied customer

• Act in a way that moves people up the ladder


Lessons Learned

The most recent satisfied customer who has

purchased products from you is the least expensive

marketing way to find new customers. People love to

tell if they are happy.

Your worst customer, will rip you apart to all their friends

Is your most recent unhappy customer


Lessons Learned

To climb the loyalty ladder, business owners must

exceed customer expectationsTeguh PrayogoTwitter : @teguh_trainer

How to make Loyal customer ?

• Play

• Make Their Day

• Be Present

• Choose Your Attitude


Benefits of “Play” :

• Happy people treat others well

• Fun leads to creativity

• The time passes quickly

• Having a good time is healthy

• Work becomes a reward not just a way to rewards

1. PLAY


• Start a joke of the month contest with its own bulletin board

• Add more color and make the environment more interesting

• Add more life with plants and an aquarium

Implementing

Play


Benefits of “Make Their Day”

It is good for business

Serving our customers well will give satisfaction

It will focus our attention away from our problems

It is healthy, it feels good and will unleash more energy

2. Make Their Day


• Pull together focus groups to study ways we can be of service to customers

• Have a monthly and annual award for service based on customer recommendations

• Appoint a special task force dedicated to surprising and delighting our customers

Implementing

Make Their Day


Benefits of “Be Present” :

• Important opportunities do not escape

• Customers know if you are listening

• Customers feel important

3. Be Present


• Encourage one another to be present. Ask: “Is this a good time? Are you present?”

• Establish a code phrase: “You seem distracted” to signal a present moment issue

Implementing

Be Present


• By accepting that you choose your attitude, you demonstrate personal

accountability and proactivity

• While we may not be able to do what we love, if we choose to love what we

do, our work area will become an oasis of energy, flexibility and creativity

4. Choose Your

Attitude


• Purchase copies of Personal Accountability: The Road to a Rewarding Work Life for Everyone. Organize discussion groups around the book - follow with similar topics

• Prepare an attitude menu to post in the office

Implementing

Choose Your

Attitude


Conclusion

• Increasing the quality of service can increase both

customer loyalty and employee retention

significantly

• People may “job hop” because they haven’t found acceptable

work environments


Business

The Customer Loyalty Ladder