Tag Archives: Loyalty business model

Three Types Of Customers

I saw the results of a survey by the folks at SAP a couple of weeks ago and have been meaning to write about it as we hit prime shopping time for the holidays.  They announced results from the Customer Journey Poll, a survey aimed toward helping organizations improve their understanding of customer happiness and encourage brand loyalty.  They polled more than 3,000 Americans, ages 18 and older, to gain insight into what makes customers loyal to a particular brand.  What they found is interesting, albeit not very surprising.

They uncovered three very interesting personas that they claim definitely did not exist 10 years ago:

SAP found three distinct personas that surfaced from the poll data: The “virtuous” customer who patronizes companies that have values to which he or she relates; the “invested” customer, who loves to interact with companies and often seeks guidance and information; and the “ignored” customer, whose inquiries about a product or service sometimes get delayed or ignored. By understanding which customer falls into which persona, brands will have the ability to deliver content that customers consider most important and, in turn, improve overall engagement.

First is the Ignored Consumer:

While email is the most popular way cited to communicate with companies, nearly half of respondents (48 percent) reported problems with delayed or no email responses.  These customers… likely wouldn’t continue to patronize a company that cuts them off.

No kidding.  But how many of us are guilty of creating exactly that group among our customer base?  On the other side of the fence is the Virtuous Customer:

Virtuous customers are those who repeatedly buy from companies they deem to have values similar to theirs. Poll data showed that shared values was cited by 30 percent of Americans as a reason to stay loyal to a brand, making it one of the top three reasons for loyalty. Seventy-five percent said the product/service itself spurred loyalty, while 41 percent cited discounts/offers.

Finally, there are Invested Customers:

Invested customers are the ones who love to interact with companies. Fifty-four percent of respondents said they’d either like or might like (depending on the company) to be offered help via chat or phone before they even ask for it. A whopping 80 percent would either like or might like to be kept up to date on new products.

Interesting.  Just as there are different types of customers there are different methods with which to engage them.  It’s increasingly important that we not offer up one-size-fits-all solutions and focus on reaching each segment in a manner that addresses their loyalty hot buttons.

Worth some thinking?

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No, I’m Not Making It Up

After Monday’s post on the collective genius of the folks at KlearGear.com, a reader reached out with a question.


(Photo credit: suttonhoo)

“I buy in to your thoughts on how customers ought to be treated, but is there research to support your statements about how doing business the right way (with a customer focus) actually translates into better business?”  Funny you should ask!

This from the Connected Customer blog from the folks at Liveperson:

Today’s savvy consumers want access to information and support instantly, and if they don’t find what they need quickly, they will look for it somewhere else. Our study tells us that, on average, consumers won’t wait more than 76 seconds if they need help during their online journey.  The research indicates that 49% of consumers continue to find websites difficult to navigate, with 33% struggling to seek help or locate customer service.

The folks at MediaPost’s Research Brief summed it up nicely:

Every interaction with a brand can either drive customer loyalty, or lead to abandonment to a competitor, says the report. The repercussions of a negative digital experience have never been higher, and the result of a positive experience is becoming increasingly more valuable. 84% of online users say brand trust is a result of a positive online experience. In addition, the vast majority say that a positive online experience makes it more likely for them to complete the purchase with the company and to buy from a company again

  • 78% of consumers agree that they are more likely to be loyal to companies that give them a great experience and service online

  • The result of a poor online interaction with a brand is abandonment of the transaction (45%), a negative perception of the company (45%), loss of trust (43%), and loss of a customer to an alternative website (41%)

So to answer the question, yes, treating customers as if they were family members or dear friends does have measurable positive effects.  We don’t need research, however, to tell us that suing our customers is a bad idea.  Almost as bad as having customer service people who can’t be reached by customers or who treat those customer complaints as annoyances rather than a problem a friend is having.

Does that make sense?

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Filed under Consulting, Reality checks

Wasting Money In Social Media

Social Media Life - Workstation

Here’s yet another one for our list of things that make you go “hmm.”  It’s a study released by COLLOQUY and the Direct Marketing Association about social media and marketing and it contains a number of interesting facts along with the aforementioned “hmms”.   But maybe I’m overreacting so let’s put it out there and see what you think. Continue reading

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