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Strategic Customer Loyalty
Why Businesses Decline
Their customers leave them… or they leave their customers
Leads to a scarcity of customers… and falling revenues
And why do customers leave?•Poor quality, high defect rates, deficient service•Lack of understanding of customers’ needs• Inadequate/inappropriate marketing/sales effort •Many more competitors and choices…
Maximising Value through Customer Management
• That wouldn’t happen here, Sir
• By the way, I’m going to be in your area…
The trust deficit
We don’t even trust the news anymore…
Maximising Value through Customer Management
World of business in turmoil
today!
Today the customers make the
rules!
But the “new” stuff just doesn’t work anymore!
We thought that the good times would last forever…
Corporate complexity…
and stupidity!
Who approved this?
Who is the 21st Century customer?
STILL
>“and never satisfied”
Short of money
Time Poor
Bored
Alienated, alone, frustrated, not valued…
“…and surrounded by
morons!”
For a generation of customers used to doing their buying research by search engine, a company’s brand is not what the company says it is, but
what Google says it is. Word of mouth is now a public conversation, carried on in blog comments and customer reviews, exhaustively collated and measured.
The ants have megaphones now(Chris Anderson, Editor-in-Chief, Wired, from his book
The Long Tail: Why the future of business is selling less of more)
18 million
hits per
month!
Maximising Value through Customer Management
• R & D and market research• Product & service development, and launch• Advertising, promotion & sales costs• Getting new customers on board
Customer loyalty is extremely profitable
Year0 1 2 3 4 5
Cust
omer
Pro
fit
Acquisition Costs
Base ProfitMarketing Cost ↓Cost to Serve ↓Increased SalesReferralsPrice Premium
But benefits also accrue from…
Why should you care?• Lifetime value of loyalty
• “Profitability” of company
• Customer reaction and response to us
• “Marketing” and communication costs
• Word of mouth & public reputation
• Tolerance & forgiveness
• Effect on competitors
• Company security and your job stability
• Financial reward and other recognition
• Pleasant work environment & morale; better work relationships
• Growth opportunity & career advancement
• Sense of pride
Maximising Value through Customer Management
Let’s Talk About
Customer Loyalty
Five Key Objectives of Any Strategy…
•Identify and find
•Win (& win back)
•Retain: but happy
•Grow
•Reduce cost to serve
Maximising Value through Customer Management
Most resources spent here. Why?
Real success lies here!
Customer Loyalty
Behaviour
Low
High
Customer Satisfaction Perceptions
Low High
How do we make ourselves indispensable?
By giving them irresistible experiences…
And thereby making competitors irrelevant!
“Smooth” Touchpoints: Get the basics incredibly right. Kill “dumb contacts” (3)
High barriers to switching
Continuous value
innovation
Put Relation-ships First
Sustainable Customer Loyalty
Creating the “perfect customer experience” begins with making it
easy to do business with your company
This is critical to customer loyalty – and avoiding customer disloyalty!
The Pillar ATM
Simplify my life
There is always a solution!
There are at least
82 ways to add value
for Your customers!
Getting to Unbelievable!
• Did you send my goldfish to London?
• Who is going to organise my seatbelt?
Maximising Value through Customer Management
Are We Customer Driven? A strategy for achieving customer
centricity
Three Prerequisites for Customer Management
Process and System Management
Leadership, People and Organisation
Customer Information & Technology Support
Customer Retention Strategy
Analysis & Planning
CVP (Customer Value Propo-
sition)
Customer Expectations
Perceptions of Experience
Segmentation & Targeting
Enquiry Management &
Conversion
Welcoming & Getting to Know
Delivering the Basics
Customer Value
Development
Managing Problems/ Recovery
Win Back Measurable Results
Benchmarking Best Practices
Customer Management
Value Innovation
Retention Activity
Maximising Value through Customer Management
BUT! The only way to consistently deliver the perfect customer experience is through people
Your competitors may be able to imitate just about everything else, but the only source of
advantage is people
Turning Ducks into
Eagles
Maximising Value through Customer Management
When the top look down they see only crap…
When the bottom look up they see only assholes
You can’t go anywhere unless you change it!
A bad attitude is like a flat tyre…
There are two kinds of people in life: ducks and eagles
Ducks act like victims, waddle around and go,
“Quack! Quack! Quack!”
Eagles take the initiative and soar above the crowd
If you show people that you don’t care, they will return the favour
Show them that you do care, and they will reciprocate
“There are no bad employees -
just bad managers”
Maximising Value through Customer Management
“I believe that we’ve got this all wrong… We should look after our people first. They
will in turn take care of customers - and they will look after the
shareholders”
http://www.youtube.com/watch?v=VVUtxdJaw10 download this video
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