May 31, 2017

Customer Loyalty

Sometimes, we think we're working for Starbucks, or Amazon, or McDonalds - especially when we think about our customer base. We believe (mistakenly) that our customers are LOYAL ... that they love us and cannot help but tell every person on social media (non-stop, mind you) just how much customers love our BRAND!

Then you actually analyze how many times a year customers purchase from us. The story typically looks like this:

The customer is purchasing 1.34 times per year - and the metric doesn't change. At. All.

This is where my readers get their marketing tactics lined up ... "WE'RE GONNA FIX THIS!"

No, you are not going to fix this.

And that's just fine! Most of my highly successful clients have a annual purchase profile not all that different than what you see above. These clients have hope, because they focus all of their efforts on low-cost / no-cost customer acquisition programs. They generate profit via countless profitable orders from first-time buyers who are not coming back.

This is the opposite of losing a ton of money on a first order by spending too much marketing to a customer and then hoping to make up the difference via customer loyalty.

Unless you work for Starbucks or Amazon or McDonalds, spend minimal time focusing on customer loyalty. Give your organization hope for the future by acquiring customers via low-cost / no-cost customer acquisition programs.