DEFINITION - CUSTOMER LOYALTY

Loyalty Marketing is the management process of identifying "best customers" and utilizing customer data and insight to create, retain and grow profitable relationships. Best customers are those who are the most commercially valuable - they bring the most profit. Also important are those whose characteristics suggetst that they have the potential to become categorized as best customers.

The REASONS CUSTOMERS LEAVE

67% Little or no customer contact

15% Service disssatisfaction

9% Competition

4% Move or Die

The U.S. Office of Consumer Affairs says that for every consumer who complains, there are 26 more that remain silent...

Ninety-one per cent of unhappy customers will never purchase again

Wronged customers will normally tell 8 to 10 people, and now so many more with the internet

Customer Retention - Customer Loyalty

All REALTORS strive to find new ways for keeping their customers, and developing clients to the point where they are loyal. Satisfied customers are often not really loyal customers. Loyal customers are repeat customers and/or provide referral business. "Correctly mining your customer database, providing meaningful and value added "Treats" along the way is a sure way of creating and maintaining a successful business"

When asked, REALTORS often relate they spend 70% of their markting budgets on finding new customers and 30% on their existing customers. Yet, the successful realtors also say they get 70% or more of their business from existing customers. I contend that targeted marketing to your existing customers (in the form of consistent touches of added value) leads to creating new prospects through your existing customers. Following up on those leads over time will produce new customers with a much greater return on your marketing budget and efforts.