Right Types of Loyal Customers Help Build Brands

Many marketers chase the loyal customer like children chase rainbows, searching for that mythical pot of gold. They’ve heard that loyal customers spend more over time, are less price sensitive and act as brand ambassadors. They’ve heard that loyal B2B and B2C customers have a higher Life Time Value (LTV) than the infrequent shopper.They’re right – in part.

Unfortunately,without proper parameters in place, the pursuit may appear as pointless as chasing the proverbial pot. Today, more people are loyal to “the deal” than they are to a particular company or brand. Loss-leaders are designed to lure customers in to make larger purchases, too. If the people who keep coming back are the ones who only cherry-pick your flyer specials, then they are hurting your bottom line. The same is true of business customers who eat up your profit margin with constant complaints and requests for special treatment or refunds and rebates.

To get the gold, you need to determine what types of customers are most profitable for your business – and then do whatever it takes to keep them loyal and court more with similar profiles.

The Canadian Business Success Centre helps its clients ensure that focus is put on retaining the right kinds of clients to help your business effectively increase both revenues and profits. Specifically, we…

  • Deploy the CBSC Matrix that enables us to identify the types of clients who are most profitable over time.
  • Ascribe a Life Time Value (LTV) Score to each of your customer segments.
  • Identify the characteristics that profitable customer groups have in common.
  • Research the reasons why they selected your firm initially and why they choose to remain loyal.
  • Provide a roadmap for retaining these Golden Geese.
  • Recommend ways to attract more customers like your High LTV scorers.

When you get it right, the myth becomes reality: Marketing costs drop, revenues increase with attendant improvements in profitability, referrals multiply, relationships with customers grow stronger and employee engagement escalates. Let us help you “get it right”.