Customer Loyalty

How does this grab you:

The statistics that a brand should focus on its most loyal customers are compelling:

* An increase of customer loyalty of 1 percent is equivalent to a 10 percent cost reduction (source: Bain & Co.)
* The probability of selling to a new prospect is only 5 percent to 20 percent while the probability of selling to an existing customer is 60 percent to 70 percent (source: Marketing Metrics)
* Customer loyalty accounts for 38 percent of margin, 40 percent of revenue growth and 38 percent of shareholder value (source: Accenture Research).

and yet, "a full 60 percent of senior executives claim they do not deserve their customers' loyalty!"

The article we link to is an interesting read, even though it is focused primarily towards use of the web to build your brand and customer loyalty. Below are 5 shortcuts:

Loyalty Law #1: Drive community participation
Loyalty Law #2: Don't just talk to customers … listen. 
Loyalty Law #3: Meet customers' expectation of honesty.  
Loyalty Law #4: Reward your best users

Next: Loyalty Law #1: Drive community participation

Have a great Day!