Kashif Hasan

Customer loyalty: built on candour, gratitude & enthusiasm

#LTV #CX #ODP

Some varieties of loyalty are illogical or ideological (think of sport, politics, religion for example). Not so customer loyalty. Customer loyalty shrivels if a product or service doesn’t meet expectations. Customers are ruthless, they'll switch if we disappoint them - we all know that. Which is why before we embark on a loyalty programme, we're wise to review our ability to retain a customer in customer in the first place. Because, planning a loyalty programme, if we’ve got a retention problem is like browsing wedding venues before the first date.

First, Retention.

Building loyalty inherently means we know how to maintain a relevant service proposition as our customers become increasingly familiar with what we offer. So, the first step in designing a successful loyalty strategy must begin with candid reflection ...

For example, do we know why our customers tend to stop buying from us? Or why they reduce their budget? Or why they resist buying more services?

Do we have any hunches? Have we tested them? Do we really know?

I'd argue these are some of the most important questions we can ask in the name of our business performance. These fundamental questions are worth returning to, and often.

Indeed, as soon as we ‘win’ a new customer we should send them a quick survey to start building a quantitive opinion:

How did you find us?
Why did you buy?
Will you buy again?

We should log this data. Interrogate it. Turn it over in our brains.

What does it tell us? What insight does it reveal about how we ought to tilt our attention toward better retention?

If we learn that customer attrition is caused by unfavourable pricing, or we're failing to meet an important need, or our aftercare feels careless - then it obviously makes sense to address these concerns before we ask Marketing to design the artwork for our new loyalty card.

Invent ways to show appreciation.

It’s common sense, isn’t it? The more we engage with our customers, the more likely they’ll become and stay loyal.

So much of our energy is poured into winning or acquiring new customers (in press releases, advertising campaigns or elaborate pitch decks) – shouldn’t a similar amount of energy be spent checking in, saying thanks and offering help?

Our customers are as intrinsic to our business as our employees - of course they are. If not quite a sin, it at least seems a little rude to treat an existing customer like an anonymous stranger. What kind of message does that send? You wooed me but now I mean nothing to you?

We all love the thrill of the chase, but let’s remind ourselves why we’re in business: to serve customers well, to build a loyal community who speak well of us, and who recommend us willingly.

So, for every opportunity there is to thank, re-assure and add a little sparkle, we should take it - by SMS, email or a phone call ...

Thanks for signing up. Here’s what you’ve got to look forward to …

If you need to change anything, there’s still time …

We’ve had an idea we think you’ll love …

Don't forget, we need <something> from you by Friday...

Here’s a small gift to say thanks… (it could be an invite to pre-register for a product launch)

Showing an enthusiasm (especially at the start) of the customer’s journey offers multiple layers of value. Yet, too often, we regard the start of their journey as the end of our sales process. Cash banked. Job done. We know that's not right. We know we can do better.

What if they want more?

When we survey new customers, we are wise to ask them whether they intend to buy again. And what if they say yes? Or give us good vibes?

We should move fast to capitalise on their goodwill. In an ideal world, their positive survey answers would automatically trigger at least two of four types of email or text messages:

Here’s an incentive* for you to buy again
Here’s an early-access invite to our next product launch or promotion or event
Write a review and get a % discount*
Here’s an incentive* for you to share this referral promo code to your friends (remember, the easier we make it to share that code, the more likely it will indeed be shared – so make it super simple!)

*Note: an incentive is anything that motivates action. Knowing the type of incentive and the value it should be, is of course, a job in itself.

What if they want even more?

When a customer buys twice they are prime candidates to become our advocates, our cheerleaders. To capitalise on this, it's up to us to be specific. So, let's make it simple. Let's incentivise them with offers, give them easy-to-share codes and always offer our sincere expressions of gratitude.

If we get this right, not only are we spreading the word, we're priming a third purchase and a deeper level of engagement.

The fact that this isn’t done more, is - let’s face it - astonishing. It’s such an obvious initiative, with so many benefits to our business.

Remember... More customer engagement = more customer retention. Thoughtfully managed retention tactics build advocacy. Advocacy is the cornerstone of loyalty.

Customer loyalty: built on candour, gratitude & enthusiasm

#LTV #CX #ODP

First, Retention.

Building loyalty inherently means we know how to maintain a relevant service proposition as our customers become increasingly familiar with what we offer. So, the first step in designing a successful loyalty strategy must begin with candid reflection ...

For example, do we know why our customers tend to stop buying from us? Or why they reduce their budget? Or why they resist buying more services?

Do we have any hunches? Have we tested them? Do we really know?

I'd argue these are some of the most important questions we can ask in the name of our business performance. These fundamental questions are worth returning to, and often.

Indeed, as soon as we ‘win’ a new customer we should send them a quick survey to start building a quantitive opinion:

We should log this data. Interrogate it. Turn it over in our brains.

What does it tell us? What insight does it reveal about how we ought to tilt our attention toward better retention?

If we learn that customer attrition is caused by unfavourable pricing, or we're failing to meet an important need, or our aftercare feels careless - then it obviously makes sense to address these concerns before we ask Marketing to design the artwork for our new loyalty card.

Invent ways to show appreciation.

It’s common sense, isn’t it? The more we engage with our customers, the more likely they’ll become and stay loyal.

So much of our energy is poured into winning or acquiring new customers (in press releases, advertising campaigns or elaborate pitch decks) – shouldn’t a similar amount of energy be spent checking in, saying thanks and offering help?

Our customers are as intrinsic to our business as our employees - of course they are. If not quite a sin, it at least seems a little rude to treat an existing customer like an anonymous stranger. What kind of message does that send? You wooed me but now I mean nothing to you?

We all love the thrill of the chase, but let’s remind ourselves why we’re in business: to serve customers well, to build a loyal community who speak well of us, and who recommend us willingly.

So, for every opportunity there is to thank, re-assure and add a little sparkle, we should take it - by SMS, email or a phone call ...

Showing an enthusiasm (especially at the start) of the customer’s journey offers multiple layers of value. Yet, too often, we regard the start of their journey as the end of our sales process. Cash banked. Job done. We know that's not right. We know we can do better.

What if they want more?

When we survey new customers, we are wise to ask them whether they intend to buy again. And what if they say yes? Or give us good vibes?

We should move fast to capitalise on their goodwill. In an ideal world, their positive survey answers would automatically trigger at least two of four types of email or text messages:

*Note: an incentive is anything that motivates action. Knowing the type of incentive and the value it should be, is of course, a job in itself.

What if they want even more?

When a customer buys twice they are prime candidates to become our advocates, our cheerleaders. To capitalise on this, it's up to us to be specific. So, let's make it simple. Let's incentivise them with offers, give them easy-to-share codes and always offer our sincere expressions of gratitude.

If we get this right, not only are we spreading the word, we're priming a third purchase and a deeper level of engagement.

The fact that this isn’t done more, is - let’s face it - astonishing. It’s such an obvious initiative, with so many benefits to our business.

Remember... More customer engagement = more customer retention. Thoughtfully managed retention tactics build advocacy. Advocacy is the cornerstone of loyalty.

Earning loyalty is simple but requires a genuine enthusiasm for customer happiness – it's hard work, but that’s what makes it rewarding.

Good luck!

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