The Top 10 Things that Create Customer Loyalty

Originally Submitted on 6/22/99.

There are a number of key issues in organizational success. One of those is customer loyalty. By UNDERSTANDING the issues that create customer loyalty in an organization we can engineer and design tactics that create higher and more valuable levels of customer loyalty. This enables the organization to differentiate itself in the competitive and rapidly changing business environment.

1. Best value!

Continually focusing on providing best value in your products and services is a key strategy. This also must be extended to your business systems! Yes, a system can be a better value, especially those that conserve time, money and attention for customers!

2. Timing

Timing is becoming more and more important in our fast-paced world. Our windows of attention are becoming narrower and narrower and if we can "time" the introduction, or provision of a service by understanding customers through relationships, the opportunity for customer loyalty looms large for almost the entire subset of our market.

3. Give them what they want and need.

Simple enough, but pretty complex in todays marketspace. The old model (seller's market) dictated that we produce and provide high quality services, often totally out of sync with what people wanted and needed--more closely aligned with our core competence than customer desires. We are now fully engaged in a buyer's market. The rules have changed, if we can find out what people need and want before they know they need and want it, we have an edge in the marketspace and a lead on creating customer loyalty.

4. Satisfaction

Do you realize that 75% of satisfied customers will leave your business for a better product or service? Even if this statistic is not applicable, it should point to the evolution in business models--from seller to buyer's markets. Satisfaction is becoming a ticket to the show, NOT THE SHOW. However, high satisfaction is going to provide you with additional opportunities to create better relationships. So your business needs to provide satisfaction, even delight, in some cases surprise (although watch this one, it creates unpredictable consequences in a business system and should be reserved for 1 to 1 systems with EXTENSIVE customer relationships!)

5. CARES

I borrowed Michael LeBoeuf's acronym, pluralized it and changed some of the words, so I don't know whether it makes it mine or his, but it should be yours. Here is what it stands for:

6. Matching the Customer's Motive System

This means that you know what motivates people and what motivates people is different for many people. David McClelland wrote about 4 major motive systems: Achievement, Power, Affiliation and Avoidance. If you understand what motivates people, you can design a better experience and focus on issues MOST important to them, not just issues that MOST people think are important--overlooking critical opportunities to personally customize service delivery.

7. Make your customer look and feel good!

I guarantee you that if your products and services make your customers look and feel good that you will have loyal customers. Look at how Saturn Dealers create "feelings" among their customers that help them feel good about their Saturns. This is an encompassing strategy and in effect--combinatorial (Kaufman) in that it creates effects from effects, so the more complex the feeling, the greater the loyalty!

8. Predictability

How can you talk about predictability in an unpredictable market place? By understanding that unpredictability can be predictable. If your customer recommends your service to others and they don't have the same great experience, your referring customer will be less loyal in the future, however if the experience is predictable and consistent from time to time--bingo--loyalty results.

9. Creating a loyalty path

Sometimes one strategy is NOT enough to develop loyal customers, especially as more and more business gets the idea! However, if you develop systems that create a path to increased levels of loyalty, then the opportunity to build above normal loyalty is created. So combine multiple systems and track the efficacy of them over time. Technology will allow us to monitor transaction frequency and volitility among our customers creating adaptive opportunities for our path.

10. Becoming a 1 to 1 company

This ain't your father's oldsmobile...and it ain't easy either. The degree to which you can embrace one to one systems according to the popular philosophy created by the Pepper's and Rodger's Group will be directed related to your ability to personally customize and deliver services that will create "increasing" levels of customer loyalty. A 1:1 company literally becomes so intertwined with the customer that CARES is the operative model and customers experience best value because they create it. If we get to choose and if the company we do business with has our personal best interests in mind, then we are NOT going to change--especially if the business has learned how we like things--the highest value of a 1:1 system.

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