MANUAL

What is loyalty?

What is the loyalty we are searching for and that could be called a real loyalty? For sure it is not to feel obliged to repeat the purchase due to relations nor it is an emotional connection between the company and the customer. So? According to Drayton Bird, direct marketing specialist, loyalty is a tendency of our clients to choose our brand against the competition when they have a choice. How to make this happen?

Before we get to this point we should try to understand why companies loose their clients? The results of research done by Mc Graw Hill Research agency show that the Clients leave because of:

- moving or death - 4 %.

- personal reasons - 5 %.

- activity of the competitor - 9 %.

- dissatisfaction with the product - 15 %.

- lack of contact from the supplier, indifference, wrong attitude - 67 %.

The results of the investigation indicate that the main reason of loosing clients is their dissatisfaction with customer service quality or product quality.

However making the client happy is not yet the solution to the problem. Satisfied clients paradoxically are not good, long-term clients. According to research conducted by ACNielsen agency in the USA 80 % of participants who changed their provider said they were happy with the previous one. It means that only very happy clients tend to select our brand above the competition when they have a choice. But what should be done in order to have such clients and make them react mainly to our offer? How to keep them with us?

In the era of increased competition a long-term loyalty program seems to be a solution to all problems. But if somebody thinks that only points and prizes will help to win client’s loyalty is very wrong and should verify this position. The keys to get client’s loyalty are not points and prizes but meeting client’s needs and expectations. The fact of offering a loyalty program, without caring about high standard of customer service for its participants is not enough.

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