Customer Loyalty

What does loyal customer mean?
  - Someone who makes repeat/regular purchases
  - Someone who purchases across product/service lines/categories
  - Someone who refers others
  - Demonstrates immunity from going to competition.

Calculate:

• R: Recency
• F : Frequency
• M: Monetary Value

And then Customer Life Time Value (LTV)

Value Pyramid of Customers/ Where is the opportunity to create loyal customers?

• Know your best customers: Who buys high order value? Who is a repeat buyer?
• What is the expected value in your segment?
• What is it about your service and product right now that makes the customer buy?
• Where does top percentage of your revenue come from? (Ticket size, geo, category, sub-cat, brand)
• What are they buying, When are they buying, How are they buying?
• When looking at top buyers - do look into returns and other data silos.
• Has the value of purchase/order value grown over the time?
• A) What are their unsolved problems? B) What are their headaches? C) What keeps them up at night?
• Make it easy for them to try or buy your new products and services.
• Are you doing Birthday/New Year promotions card? Do you use this opportunity to force feedback?
• "What is one thing we could have done better?"
• Seek out employee feedback. Make sure you empower employees.
• Communicate the vision of promotion to the front line.

Create such a visualisation:

Total Revenue                         80% of Revenue

XXXX                                      0.8R

CUST ID         REVENUE        80% REVENUE

1                         

2

3

4

5

6

7

8                         R                        0.8R