[1to1 Media, March 8, 2010]
Customers may favor your brand and adapt behaviors to purchase regularly by choice or default, but are they actually helping you realize profits? 1to1 Media recently held a round table discussion with three loyalty marketing experts to make distinctions between behavioral, emotional, and profitable loyalty when building customer loyalty. Marketers have long understood behavioral and emotional loyalty, but have recognized a new trend in profitability loyalty. The loyalty expert panel argues that companies should approach loyalty with three strategic goals:
Panel expert Dr. John Daly notes that a cost of customer analysis reveals that on average, “Profitably loyal customers make up only 20% of a company’s customers, break even customers make up about 60%, and 20% of your customers are actually unprofitable.”
So how can you achieve profitability loyalty for your organization?
Customers need to feel a deep sense of commitment to your brand. Driving, building, and managing the customer’s experience requires time, consistency, and a customer centric strategy that considers the bottom line.