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Tagged: customer advocacy

How to Grow Loyal Customers into Brand Advocates

June 8, 2016

The blueprint of a brand comes to life with the accumulation of loyal customers, and it expands its reach by shaping those customers into advocates. This two-tier configuration is a launching pad.

There are two parts to the first tier. First, the customer needs to believe the services have quality. One successful transaction can plant the seed. Additional successful transactions build confidence; even when some error occurs on the side of the company, the loyal customer is ready to overlook it.

This trust ties directly into the customer’s level of allegiance. All it takes is one bad deal to push your customer to a competitor — but the loyal customer will standby because there’s usually something in it for them.

Loyalty cards and programs can be used to measure customers’ habits and keep them close.

86 percent of those in a loyalty program feel their efforts are worth the prize. 83 percent say the program keeps them anchored to the brand. It seems like every business has a rewards card or member program, and that’s because they work. The 2015 Bond Brand Loyalty study revealed 86 percent of those in a loyalty program feel their efforts are worth the prize and 83 percent say the program keeps them anchored to the company.

Financial service companies still lead the way with loyalty-based programs. The two most important factors to customers are being able to easily use their rewards, and being able to choose them. Cash-back rewards are the most attractive feature due to their unlimited nature. This type of freedom can launch debit card usage upwards of 200 percent.

Once a person commits to the brand, it’s important to keep the high-quality rewards in play – the competition is steep, with a surplus of 430 million credit card loyalty memberships in the U.S.

To grow loyal customers into advocates, first, institute a relationship and foster it.

The transition sparks when customers begin to tell friends about how easy it was to obtain a decent loan with low interest rates, raving about the employee who was able to seal the deal.

The humanization of the customer experience cannot be overlooked. To have a quality product or service is not enough to keep the customer interested. There are simple ways to evolve your professional relationship with the customer:

  • Use their name as often as possible, including the first name when appropriate. Inclusion begets confidence, and confidence allows the customer to be more open to taking risks and trying new things.
  • Learn their reasons for using your services or choosing your products. If they’re opening up a savings account for their oldest child on his twelfth birthday, ask when their other children have birthdays and send personal reminders accordingly.
  • Ask them for their opinions relating to your brand by having them walk you through their experience. Face-to-face conversations can reveal more.
  • Pay attention to reviews and feedback. Not all content will be positive, so keep your eyes open for weak links. Put more effort into building those up while maintaining the high level of satisfaction in other areas.
  • Treat every interaction with your customers as the very first interaction and continue to learn more about them. They become more valuable with time.

An advocate not only acts as a free advertisement, but he or she will also continue to make purchases and use services – at least twice as much as the average customer. Some case studies have shown upwards of 10 times as much continued buying behavior.

Draw customers in with quality, and keep them with distinction.

In 2014, a startup investment company, OurCrowd, shared its secret to boosting customer loyalty: blending content with community. By powering and sharing content, you increase communication and, therefore, trust. Furthermore, OurCrowd discovered content wasn’t a one-dimensional marketing tool, but a bridge that filled the gaps of knowledge.

 

Look closely to discover what is missing in the link between your brand’s mission statement and the customer’s experience. Educate your customers, showcase your expertise, grow together and create a transparency that will boost customer relationships.

4 Things a Net Promoter Score℠ (NPS®) Can Do for Your Business

May 31, 2016

Think about a brand you absolutely love. They’ve got a five-star product in your opinion, or you’ve fallen for their fantastic performance, or you’re super happy with how they manage their business. On a scale of 0-10, how likely would you be to recommend that brand’s products or services to a friend? If you answered 9 or 10, you can consider yourself a promoter.

This idea serves as the foundation of the Net Promoter Score℠ (NPS®).

A Net Promoter Score is a way to measure the loyalty between a company and its customers. The measurement comes from a score calculated based on the answer to this question:

On a scale of 0-10, how likely are you to recommend this product/service/company to a friend or colleague?

clipboard showing customer satisfaction scores similar to NPSBased on their answers, customers are categorized into one of the following three groups:

  • Score of 0-6: Detractors. Not likely to recommend. These customers are overall unhappy with your brand and can cause damage through negative word-of-mouth talk.
  • Score of 7-8: Passives. Somewhat likely to recommend. These people don’t hate your brand, but they’re not thrilled with it either. They might easily switch to a competitor; they lack brand loyalty.
  • Score of 9-10. Promoters. Extremely likely to recommend. These respondents love you. They are your repeat customers, and they’ll happily tell others how satisfied they are with you.

To calculate your NPS®, you take the percentage of customers who are promoters minus the percentage who are detractors. You end up with a score between -100 and 100. The higher the score, the more promoters you have, and the better you can infer your business is performing.

According to Bain & Company, which first introduced NPS®, “High scores on this question correlated strongly with repurchases, referrals and other actions that contribute to a company’s growth.” And their case studies show that the NPS® question is tops when it comes to predicting behavior. Therefore, the score is often seen as a good indicator of future growth.

When looking at your NPS®, here are four things your score can tell you:
  1. It can show what your company is doing well. Higher scores often reflect a healthy business. Results can reveal areas of strength that should be maintained or built up even further.
  2. It can uncover what needs to be fixed or improved. A lower score can indicate the need for probing into customer satisfaction or loyalty issues.
  3. It can initiate relationship building. The Net Promoter SystemSM encourages reaching out to customers to address their concerns, leading to one-on-one interactions that can be powerful.
  4. It can help motivate employees. Feedback related to your score can give your team members incentive for making improvements and providing a great customer experience.

Companies in all types of industries are using Net Promoter Score® – from financial to healthcare, tech to retail, and more. CSP is licensed to use the NPS®, as well as other metrics, to help businesses grow loyalty and customer satisfaction. To know more about how we incorporate these powerful analytics into a customer experience strategy, contact CSP with your questions.

 

Net Promoter, NPS, and the NPS-related emoticons are registered trademarks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.

Sources:

http://www.medallia.com/
http://www.netpromotersystem.com/
https://www.netpromoter.com/