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Customer Loyalty 2.0
The use of customer loyalty survey data to help manage
customer relationships has experienced much innovation with
the advent of the Internet. Web-based surveys have
simplified the process of data collection, reporting, and
integration with existing business systems. While the
quality the customer survey process has seen a great deal of
improvement, the quality of the actual measurement and
meaning of customer loyalty has not kept pace. Our latest
research on customer loyalty narrows this gap.
Customer Loyalty 2.0 represents the advancement in the
measurement and meaning of customer loyalty.
We have found that there are three kinds of customer loyalty:
advocacy loyalty,
purchasing loyalty and
retention loyalty. While
advocacy loyalty is commonly used to help manage customer
relationships, purchasing loyalty has received little
attention. By overlooking purchasing loyalty, businesses may
miss opportunities for increased revenue growth through
existing customers.
We help enterprises understand these three dimensions of customer
loyalty to improve customer relationship management and
maximize all potential
revenue opportunities.
Customer Loyalty 2.0 Metrics
Advocacy Loyalty Index (ALI):
What makes your customers become advocates for your company?
The ALI measures the degree to which customers are likely to
advocate your company.
Purchasing Loyalty Index (PLI):
How can you increase the purchasing behavior of your
existing customers? The PLI measures the degree to which
customers will increase their purchasing behavior.
Retention
Loyalty Index (RLI): How can you decrease churn of your
existing customer base? The RLI measures the degree to which
customers will leave you for your competitors.
To start
learning more about Customer Loyalty 2.0, please visit the
BOB blog. |
