HOW LOYAL ARE YOUR CUSTOMERS?
This month’s SalesPulse is in the form of a questionnaire and requires just YES/NO answers. Its aim is to help you to assess the loyalty of your customers, and the impact that it has on your business. Loyalty is an interesting word as its true meaning is different to that used in business. For example I am very loyal to Coventry City FC, but expend very little money being loyal to them; in business terms we need a combination of factors to define loyalty and these are covered in the questions below. When answering baseline your responses on your position 12 months ago.
| Attribute |
YES/NO |
| Has customer retention improved? | |
| Is customer satisfaction improving? | |
| Is customer feedback predominantly positive and regular? | |
| Is your people’s satisfaction increasing? | |
| Is your market share improving? | |
| Are sales to your existing customers increasing year on year? | |
| Is your sales win rate better than 80% of qualified bids? | |
| Are you winning business that you really shouldn’t be? | |
| As a percentage of revenue are your annual customer support costs reducing? | |
| Do your customers ask for advice on broad range of topics? | |
| Do your customers ask how they can expand the partnership? | |
| Do your customers consistently provide you with referral business? |
In last month’s SalesPulse we introduced you to the Value Journey. If you didn’t see it, here it is again.
|
Price Differentiator |
Value Add
|
Mutual Benefit |
Joint Venture |
|
Simple service(s) |
Specific service(s) |
Shared Service(s) |
New service(s)
|
|
Every deal is a battle |
Less Competition |
No Competition
|
New Customers |
|
Cost of sale is high |
Cost of sale reduces |
Higher Margins |
Wealth Creation |
|
Tier 4 |
Tier 3 |
Tier 2 |
Tier 1 |
Last time we asked you to position your company in the grid. If you could, or indeed did answer yes to all the questions would it help you improve your positioning? It should do, even if your products and/or services are commodities. We will be exploring more about customer engagement and loyalty at The SalesPulse Centenary Sales Conference in June. If you would like to attend just reply YES to this newsletter and we will do the rest. Thanks and have a great quarter end.