Building Customer Loyalty

Before building something we need to understand what is the meaning of the term loyalty.

Simple definition:
Where an individual becomes accustomed to buying from you.

Loyal customers will:
- make regular/repeat purchases
- purchase not one but many of your products/services
- refer others (spread your story)

Some people say that "in every old customer you will find a new customer waiting to be break out and spend more money with you!..."

Value Pyramid Example:
1. Basic Value - Accurate billing, Prompt service
2. Expected Value - Delivery by 10 a.m on next business day (things to stay even with competition)
3. Unanticipated Value - first to provide online tracking, first to provide handled devices

When it comes to loyalty and retaining customers I would say the following:

"The more unanticipated value you provide a customer the deeper his loyalty to you"

Don't forget the 80-20 rule: 80 percent of your revenue is being generated by 20 percent of your customers. This means the not all customers are created equal.

So how to identify your best customers:
- Total revenue (for example $746,000)
- Calculate 80% of revenue (746,000 * 80% = 596,000)
- Next begin listing in descending order revenue b customer
- Add a column which will sum the revenue till now, stop when you get to your 80% revenue)

- RFM

- PPRFM

Comments

Signup process, how to do it right!

Every flow, campaign you do should have KPIs , but most of all it should have a purpose. When we work on the signup flow we need to understand that the purpose is 100% clients that start the signup flow will complete it. This means your signup flow should be KISS (keep it stupid/super simple). In the signup flow we usually need the basic information of a customer, like: 1. Full name 2. Email 3. Phone number 4. Birthday 5. Country 6. City 7. Zip Code 8. Gender An example of a signup flow: The above diagram describes a nice signup flow: 1. On the first step you fill in your email and password (could be separated into two steps) 2. Step 2 you will need to fill in your full details, in the meantime you will receive a confirmation email. 3. Step 3 you will need to verify your phone number The email confirmation step is not part of the signup process. This email should have only one purpose, confirming the customer's email. Don't make it long or explain abo

What the FUCK is churn rate?

What the fuck is churn rate and why is it so important for your company? Wikipedia tells us: "Churn rate (sometimes called attrition rate), in its broadest sense, is a measure of the number of individuals or items moving out of a collective group over a specific period. It is one of two primary factors that determine the steady-state level of customers a business will support. The term is used in many contexts, but is most widely applied in business with respect to a contractual customer base. For instance, it is an important factor for any business with a subscriber-based service model, including mobile telephone networks and pay TV operators. The term is also used to refer to participant turnover in peer-to-peer networks. Churn rate is an important input into customer lifetime value modeling, and can be part of a simulator used to measure ROI using marketing mix modeling ." When you look at your churn rate you know how is your retention performing. How

Priority Potential RFM

After learning what is the RFM algorithm in my previous post . I would like to write today about my adjustments and improvements that helped me during these years as an online marketer. I call it the Priority Potential RFM or just PPRFM . P - Priority (who to contact first) P - Potential (predicting lifetime value of a customer) R – Recency (most recent deposit) F – Frequency (how many times he deposited) M – Monetary (Lifetime Deposits) Please see attached diagram I did for an online gaming company: Remember we are not changing the RFM algorithm we are just adding two new add-ons. Priority - everything should work according to who do you want to contact first and why. Potential - In this section you put everything you think might influence a customer to buy your product or not. It can be various things so try to think what are the characteristics that differentiate your purchasing customers from your customers that still didn't buy from you and segment them

On the way blog - Where you learn new things in two minutes!

Search This Blog