Relationship ladder of customer loyalty

Recently I was working with a client and we were discussing different types of customers — specifically loyal customers — that any business might encounter. I thought it would be interesting to share the list that we came up with. I included businesses that have loyalty programs because so many of my clients do.

Relationship ladder of customer loyalty

Evangelists are the people who will shout your praises from the roof-top and help you in building an ever-expanding loyal customer base - all for free. What more can you ask for? But how do you turn your prospects into evangelists?

This is where the "Ladder of Customer Loyalty" comes in.

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It is a customer categorisation with seven levels. You start with people who might be your potential customers. While keeping them engaged with your great product line and amazing customer service, you keep increasing their level of loyalty.

Eventually, you will have an evangelist for your business. Suspect The first level is that of people who might be potential buyers. This is essentially anybody who could buy from you.

For example, if your product is available in Melbourne only, then the whole of Melbourne regardless of demographics, target market, etc. Prospects The second level is that of people who are the potential buyers of your product or service. They haven't bought from you yet, but they have expressed some form of interest.

The greatest cost in running a business is that of getting a prospect. Advertising budgets speak for themselves. Customers The third level is that of people who buy from you. The critical factor here, is the fact that most people are just one-time buyers.

So, the company has to go out there and find new prospects. Some businesses spend millions on prospecting strategies, which lead to lead generation.

The Definition of Customer Loyalty

Out of these leads some buy from you and some don't. If the buyers are just one-time buyers then you have to repeat the whole process again and again. Clients Clients are repeat customers. They buy form you more than once.The virtual ladder created, echoing the loyalty ladder of relationship marketing, suggests that contributors to social networks can also be advanced upward and developed by marketers.

– The loyalty ladder is a useful classification tool to monitor customer loyalty and dollar‐effectiveness of customer loyalty programs.

Relationship ladder of customer loyalty

Each rung offers a managerial challenge to ascend to the next rung of loyalty. This includes tools for managing relationships with customers that goes beyond demographic and customer service data.

Relationship marketing extends to include inbound marketing efforts, (a combination of search Relationship marketers speak of the "relationship ladder of customer loyalty". It groups types of customers according to their. this is my view on types of loyalty – i see loyalty like this – for example – new customer, occasional customer, shifting loyal, hardcore loyal, local loyal, online loyal, omni-channel loyal, omni-channel shifting loyal etc.

look down this route to really segment the customers into their loyalty bases. Customer loyalty is the continued and regular patronage of a business in the face of alternative economic activities and competitive attempts to disrupt the relationship.

Customer loyalty often results in other secondary benefits to the firm such as brand advocacy, direct referrals, and price insensitivity. The concept of Customer Loyalty Ladder comes under relationship marketing and brand management which deals with establishing long term relations with customers.

It is said that the cost of attracting new customers is times more than that of doing business with existing customers.

Relationship ladder of customer loyalty
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