Fidelity. Loyalty. Satisfaction
Relationships are made of two parties. There are many considerations that are included in a relationship, in many cases are previously accorded by both sides. This makes the relationship work, progress, and continue through time.
Relationships can be between two people, of two groups of people, but also between a company and its customers. Here is where it becomes complicated, well… every relationship has in a point something complicated, right?
Companies must build this relation between themselves and their customers. They need to construct (and maintain) this bond. They need to build communities, to create loyalty. This loyalty will, probably, make their business succeed.
How do companies construct relationships?
First of all, they need to know their customers. Companies must understand who they are talking to, and what would their interests be. Having this information gives them a clue on what customers value about their company, so they can start building plans, experiences, and products that give the customer satisfaction. Satisfaction is the first step of building loyalty.
Clients that are happy and satisfied will probably go back to your company and hopefully would recommend you to their friends and family. Loyalty creates brand equity: builds a favorable value acquisition of your product, service, or company (brand).
Companies need to track their client’s satisfaction, add it to the company’s database, understand issues, and retain them if possible. Customers may need to measure this satisfaction by customer satisfaction surveys post-purchase or experience, and generating NPS (Net promotion Score) which determines how likely are your consumers to recommend your product or service. This score will give a clear indicator of how the company is doing in terms of satisfying its consumers.
How is the loyalty achieved?
A satisfied customer is a loyal customer. Having your brand loyalty built will surely give you the basis for retaining customers. A customer loyalty journey would begin with the company meeting the customer’s basic needs. By doing this, the company prevents the client to complain and hopefully passes to the next level. A second instance would be to strive, where your client develops confidence in your brand or product, you have given a minimum extra step that leads to loyalty. The third stage or step of the journey to become loyal is done when the company exceeds the customer needs, this leads the client to build their loyalty. The last instance is given when the client is delighted by the company’s efforts and, it can be said that the customer is retained.
Reaching this final stage or step in the loyalty journey doesn’t mean you can rely on and rest, competition is tough, and there will be always someone trying to take your more loyal customers from you.
Hope you liked today’s “Let’s talk about…” topic, I look forward to reading your positions and comments!