Give your business the gift that keeps on giving

Loyal customers are the gift that keeps on giving.

They are an asset of abundance.

“A loyal customer spends more and more often over the longer term with the brand where similar competitors are in-play and they love and trust the brand and recommend it to others” [1]

With this definition of a loyal customer in mind, loyal customers are gift-wrapped as a bundle of 3P’s = Productive + Profitable + Promoters

This gift is based on the availability of known customer data gained through an e-commerce offering, loyalty program or general business interaction when data is exchanged for commerce:

  • Identifiable data = know your customers as individuals eg name, gender, age, interests and profiles
  • Consented & contactable data = know they have given you permission for channel specific ongoing dialogue.
  • Dynamic dialogue data = know their behaviour and attitudes, progressively enhanced by an ongoing value exchange and dialogue. Gain purchase behaviour data - what they buy, why they buy, when they buy, how often they buy and how much they spend.
  1. Loyal customers are productive
    • Easier to understand and influence their behaviours and motivations with known customer data
    • Easier to communicate with established opt-in communications
    • Easier to get feedback from as they more responsive to research
  2. Loyal customers are profitable
    • Lower cost to cross-sell (see ‘Productive’ points above)
    • Lower cost to upsell (see ‘Productive’ points above)
    • Lower cost to serve and sell to (vs new customer acquisition cost and initial sell-through)
  3. Loyal customers are promoters
    • They inherently trust the brand
    • They are more likely to refer others and are the source of new customers
    • They are more forgiving of mistakes (trust influences this)

The intersection of the three P’s unwraps the asset of abundance:

  • Productive and Profitable = seamless profitability
  • Profitable and Promoters = profitability from existing customers and their referrals
  • Promoters and Productive = seamless customer acquisition

2021 is the time to unwrap the abundance of loyal customers and give your business the gift that keeps on giving.

Have a happier 2021 and an abundant year of loyalty!

[1] Definition based on benchmark research of the 11 dimensions of loyalty in the For Love or MoneyTM research