Basic info graphic description

3. Customer
loyalty
1. Build a
Foundation
for Loyalty
Be selective in acquisition
Segment the market
Use effective tiering
of service.
Deliver quality
service.
The wheel of Loyalty

4. Searching for Value—Not Just Volume
 Focus on number of customers served as well as value of each customer
 Firms that are highly focused and selective in their acquisition of customers grow faster
 “Right customers” are not always high spenders
 Different segments offer different value

5. Which segment sees high value in
our offer, spends more with us over
time, costs less to maintain, and
spreads positive word-of-mouth?
Which segment costs us time,
effort, and money, yet does not
provide return we want? Which
segment is difficult to do
business with?Lead
Iron
Gold
Platinum
Good Relationship
Customers
Poor Relationship
Customers

6. 0
20
40
60
80
100
1 2 3 4 5
Loyalty(Retention)a
Very
Dissatisfied
Dissatisfied Neither Satisfied Very
Satisfied
Satisfaction
Near Apostle
Zone of Defection
Zone of Indifference
Zone of Affection
Terrorist
Apostle

7. Customer
loyalty
1. Build a
Foundation
for Loyalty
Be selective in acquisition
Segment the market
Use effective tiering
of service.
Deliver quality
service.
The wheel of Loyalty
2. Create Loyalty
Bonds Deepen the
relationship
Give loyalty
rewards
Build higher level
bonds

8. Customer
loyalty
1. Build a
Foundation
for Loyalty
Be selective in acquisition
Segment the market
Use effective tiering
of service.
Deliver quality
service.
The wheel of Loyalty
2. Create Loyalty
Bonds Deepen the
relationship
Give loyalty
rewards
Build higher level
bonds
3. Reduce
Churn Drivers
Conduct churn
diagnostic
Implement
complaint
handling and
service recovery
Address key churn
drivers
Increase
switching costs

9. Customer
loyalty
1. Build a
Foundation
for Loyalty
Be selective in acquisition
Segment the market
Use effective tiering
of service.
Deliver quality
service.
The wheel of Loyalty
2. Create Loyalty
Bonds Deepen the
relationship
Give loyalty
rewards
Build higher level
bonds
3. Reduce
Churn Drivers
Conduct churn
diagnostic
Implement
complaint
handling and
service recovery
Address key churn
drivers
Increase
switching costs
Enabled through:
 Frontline staff
 Account
managers
 Membership
programs
 CRM
Systems