Marketing is dead, and loyalty killed it, says Alexander Jutkowitz in Harvard Business Review. According to Thanx, 64% of revenue is generated by 25% of customers. What is responsible for Apple financial success is astonishing 78% customer loyalty to iPhone. How to achieve such effects? Marketing Automation will help.
What loyalty means?
Loyalty means existence of some added value which makes customers choose that particular product/ service/ store, even if there are reasons to buy from competitors.
Loyalty involves more than just retention. If you have the only shoe shop in the area, customers obviously come back, but they do so out of dependency, not loyalty.
Only when another shoe shop will appear in the neighborhood, customer loyalty and added value could be possibly measured.
Added value is a feature that defines uniqueness of a product/ service/ store and creates fundaments for long-term relationship with customers. It could be:
- Sense of security
- Sense of belonging
- Product exclusive feature
- Quality of customer service
- Advantageous loyalty plan
- Values or ideas behind a product
- Lowest price guarantee
Anything that bring customers back, even if competition offers similar – or even the same – goods.
Boosting customer loyalty with Marketing Automation
But mere uniqueness is not enough, because the form of our communication also determines customer loyalty. That’s why you need marketing automation.