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Help Your Customers to Climb the Loyalty Ladder to Grow Your Business
We call this the Loyalty Ladder because we want to try to move people up each rung to get as many as possible as near to the top as possible. The more Customers, Clients and Advocates we have the better it is. This process can't be an accident and like most things, the devil is in the details. However once we know the process we can use it, and get good at it. If we understand and accept the Ladder and how it works, we now know how to cultivate Customers from Prospects, Clients from Customers and Advocates from Clients.
The Advocate
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The Advocate is by far the most important of all, although he or she may not always purchase that much, or that often, themselves. Of course they have been or are customers or Clients but their value goes beyond that. Advocates are people who know and believe in your enterprise. They reccomend you and your products. They are a "centre of influence" and strongly effect others that they meet or talk to. No, they are not always your Mum.Don't try to understand why they send you so many potential Customers and reccomend you so widely and strongly. No, just accept it or appreciate it, but most of all recognise it and demonstrate your thanks. Just a handful of advocates can make all of the difference to sales, but here is the catch. They can't be bought, they must be earned. Think of them as freinds - not necessarily of yours, but freinds of your business. They are almost product groupies. Beware they are not always easy to spot. Often they are not recognition junkies but they feel they are doing you and the person they are recommending, both a favour and that is reward enough for most advocates. They just simply believe. Be vigilant and identfy and cultivate them beacuse if Clients are gold then Advocates are Diamonds. Perhaps you have even been one yourself recommending a movie or a restaurant or a holiday spot etc. Advocates are the best salespeople for you as they have ultimate credibilty and sincerity. A deadly combination indeed.When looking for goods and services, is there anything quite as complelling as an enthusiastic recommendation from a friend? |
The Client
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A Client is simply a Customer that buys regularly. They are the most important type of Customer because they are the repeat Customer. My advice is Service these people to death! Get to know their names and make every transaction a happy one for them. They are probably your real profit margin and should be treated like gold.Over the years I have regularly given my team a talk entitled "The care and feeding of the Goose that lays the Golden eggs" That precious Goose is our Client base from which all of the good things flow to us all in turn. |
The Customer
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Everybody knows what a customer is, but do they know how important they are? I refer to everyone in your team. The Customer is obviously someone who gives you their custom. They pay the bills and the wages. They may not always be right, but the smart operator would never suggest other wise. Your existing Customer base measures the value of your business. Sometimes called "goodwill" - and that is precisely what should be shared with them at every contact. Recognise that these are V.I.P.s. |
The Prospect
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These people are either "in the market" or soon will be. They may be ready, willing and able to buy or they may still be in research mode. In any case you hope to be on their shopping list of places to consider. These are the people that can be turned into customers. They have the questions and search for information. You should already have the answers prepared, but how are they going to find you? Have you left a trail of breadcrumbs for them to follow? What is directing them to you? The prospects are where most of your growth can come from. |
The Suspect
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These are the people that you suspect will do business with you. You may assess that they could or even should use your goods and services. Often they don't. They don't know you. |
The Stranger
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This one is simple. This group includes everyone who has not yet done business with you. You don't know them and they don't know you. |
Although it is a Ladder it might also be discribed as a type of Funnel where you have to put in a lot of Suspects to get some Prospects, to convert some of them into Customers. Then develop some of those Customers into becoming Clients and then finally into some Advocates for your Business. Some call this the numbers game and they try to win this "game" by aquiring a lot of Suspects or even Prospects and using the "Law of Averages" to do the rest. There is a better way, and that better way is to know and to focus on the conversion ratios and get good at developing people into the next catagory. You still need a good few Suspects and Prospects but make their development a premeditated and deliberate process. Sure you won't convert everyone. Some won't be right for you and you may not be right for them. That's life. (See the article The 5 Resond People Don't Buy)
Remember that Michealangelo once said "you have to bugger up a lot of marble to come up with one good statue". |
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