What is Loyalty?
Identifying Best Customers
All customers are equal, or are they?
Customers can be assessed across a number of criteria that can identify their contribution to the success of an organisation. The most obvious measure used is profit, followed by revenue. But there are others that can bring about a very different assessment of customer value such as cost to serve.
It is critical to align the most important drivers of value within a business with any loyalty initiative in order to avoid the ‘Hoover syndrome' (the loyalty initiative that went badly wrong as customers took advantage of an offer to buy Hoovers and fly to the US for free, selling the unwanted Hoovers). We must avoid encouraging customers from behaving in ways that are inconsistent with profitable outcomes.
Just as important is the identification of what ‘best customers' look like in order to help us find more and encourage others to behave like them.
At Loyalty Consulting UK we help our clients to adopt a customer lens for their business, this helps to focus the organisation on positive customer outcomes that support an overall plan to defend a market, grow a customer franchise, re-organise a business for success and deliver profitable growth.
