This article from Staples.com reviews the principles outlined in the book Innovating Analytics, by Larry Freed, a customer experience and analytics expert. The author proposes four rules for enhancing customer loyalty.
1. Customer retention should be priority one
Hanging on to your existing customers is key to growing your revenues. According to Inc. magazine, acquiring a new customer costs about five to nine times more than it does to sell to an existing one. On average, current customers spend 67 percent more than new ones.
2. Customer upsell — sell more to existing customers
If you can sell more to your existing customers, you’ll reap rewards. But, you have to be delivering a good experience that ensures that customer satisfaction is high. Your customers are fickle and will leave you flat if they have negative experiences or hear of such through word-of-mouth.
3. Marketing-driven customer acquisition
Reach customers where they want to be reached. Today that may mean traditional marketing channels (advertising and promotions), or social media and digital, mobile and online options.
4. Word-of-mouth driven customer acquisition
Engaging potential customers through social media is becoming the status quo. Converting them through this channel is a way to acquire a new customer, but also to capitalize on the word-of-mouth aspect of social media.