The Customer Loyalty Ladder
04th October 2008
The Customer Loyalty Ladder is used to illustrate the different types of customer a company encounters. Often businesses focus much of their time, energy and budget on the on the first couple of runs, whilst putting little or no investment in to their satisfied clients. It can cost a company anything up to six times as much to attract new customers, and 30 times as much marketing investment to attract a new customer via traditional forms of advertising as to have a satisfied customer find new customers for them.
Advocates
The top rung of the loyalty ladder. Customers who become advocates for your company and its products and services. These customers give unpaid advertising for your business, via word of mouth, giving you testimonials or by taking part in your Customer Success Stories and Case Studies
Regulars or Repeats
A loyal customer who buys from you more than once. Often this will be as a result of them upgrading to a newer or better version of your product (up-selling) or buying a complimentary product or service (cross-selling).
Customers
Those who buy your product or service.
Prospects
Someone you know has a need for your product/service. For example, someone who pays attention to your promotion, makes a request for further product details, pricing, or delivery information.
Suspects
Individuals or companies you suspect have a need and are able to pay for your product/service. Someone who reads or hears your ad, visits your website, looks at your brochure or encounters some other type of promotion is a suspect. Suspects are typically people who are similar to your existing customers.
Comments
thats wonderful,you did a great job
By joy roland on 30th April, 2010
This is great stuff. Now I WANT to make some phone calls!! Thank You.
By Michael on 29th November, 2008
Quite inspiring, Keep up the good work, Thanks for bringing this up
By Website Development in London on 18th December, 2009
The business terms push and pull originated in the marketing and advertising world, but are also applicable in the world of electronic content and supply chain management. The push/pull relationship is that between a product or piece of information and who is moving it. A customer pulls things towards themselves, while a producer pushes things toward customers.
By robert on 23rd December, 2009
First you must know as much as you can about people's needs, human culture, Internet culture. You must know what they want and what they want to hear. But do not do the same mistake that most people do. Some have the charisma but are not honest. Others are honest but do not have the charisma. So you must inspire confidence.
By daneil on 23rd December, 2009
Where else "Push Marketing" uses method to motivate their sales team or channel to deliver the result - e.g. trade promotion, sales incentive and many other aggressive performance driven marketing activities.
By Online Tax Preparation on 02nd January, 2010