Connect with us

Performance & Growth

3 Ways To Stop Taking Your Most Loyal Customers For Granted

Do you know who your most devoted regulars are? Are you listening, Uber?

Published

on

loyal-customers

ASTRSK founder and regular Uber user Elliot Tomaeno (who is, in fact, Uber’s most frequent rider) last year wrote to the ride-share giant an open letter detailing his disappointment at the lack of appreciation he said the company shows loyal customers.

In his communique, Tomaeno pointed out that the company hadn’t once thanked him – no postcards, no emails, no recognition of his “undying loyalty.”

He wasn’t just being nitpicky. According to L2 Research, 90 percent of customers surveyed, who participate in loyalty programs, said they wanted those companies to communicate with them regularly. As Tomaeno touched on in his letter, the message here is that a little personalised outreach helps turn regular clients into dedicated brand advocates who will actively spread the good word.

So consider: If you take your most devoted customers for granted, you’re losing an enormous opportunity. When it comes to driving sales, few things are more important than building loyalty.

Rewarding the regulars

Loyal clients keep coming back, providing steady revenue for a company. But what is the best approach to creating that loyalty?

Think about credit card companies. They offer reward points for signing up and more points if you spend a certain amount. Yet it’s not loyalty that keeps customers from closing their accounts. They know their credit scores will drop if they do, so an artificial block is in place that helps credit card companies retain customers. Points don’t instill a sense of loyalty in them, but negative consequences do.

On the flip side of the same coin, you have companies that seem to almost intentionally gouge their longtime clients. Is it any wonder that people seem to universally loathe their cable providers? Some major American cable companies are notorious for offering better packages at lower price points to new customers while forcing existing customers to pay more for less.

loyal-customers-in-business

Obviously, neither approach is going to build real loyalty. Here are three steps to strategically reward and retain your most loyal customers.

1Understand the complex value of each customer

One of my clients’ sales teams told me about a special factor they take into account before deciding how much to charge a particular client. It’s called the PIA, or “Pain in the Ass,” index. Basically, they’re making a value judgment about how much emotional distress certain clients are worth in the long run.

With the PIA index in mind, consider how longtime customers are likely already pretty satisfied and are therefore more enjoyable to work with. That’s what I’m talking about when I say you need to understand a customer’s true value, and not just in terms of dollars.

Sound simple? Many of the business leaders I know actually don’t understand what their best customers are really worth. Knowing the value of repeat customers versus that of new customers would help those leaders better tailor offers and loyalty initiatives for each. To assess this, yourself, keep metrics for every client, to see not only how much bottom-line revenue you make off each one, but also how many referrals each client sends your way.

At our company, we also measure the efficiency of our clients, in respect to time spent, and how they’ve treated our people in the past. The amount of emotional energy you have to sink into certain accounts may not make them worth your time, ultimately. As for the others: Let those who provide the greatest value know how much you appreciate them.

2Give them more than a punch card

Repeat-customer perks have long been part of the loyalty-building game. Historically, though, these benefits have been somewhat uninspired and generic. Is it such a prize to earn a free sandwich after purchasing 10?

To win your customers’ dollars and their hearts, get more creative with your incentives. Starbucks, for example, developed a highly personalised rewards programme. By partnering with outside companies, such as Lyft and Spotify, it provides frequent latte-sippers with unique perks beyond what its stores provide.

Most companies are missing out on this lucrative opportunity, as 89 percent of brands fail to tailor rewards to their customer base, according to Capgemini Consulting. Old-school discounts simply don’t work anymore. These days, only 47 percent of customers say that they’ll exchange their personal contact information for discounts, according to 352 Inc.’s Geoff Wilson; and that number can be expected to continue to drop.

So, segment your customers and build out a solid loyalty program that tailors rewards specifically to those individuals’ interests. Whether you allow them to earn points for each purchase or dollar spent, or offer exclusive promotions to clients who have been with you for a certain period of time, individualised rewards will make them feel great – and convince them to stick around.

3Show them the love – constantly

One of our clients, Build.com, sends regular emails to its customers that contain useful home-improvement tips. We see great engagement with this programme because when recipients see this content hit their inboxes they feel part of an exclusive club that shares insider information.

With the Rockefeller Corp. finding that 68 percent of customers leave because they feel companies don’t care about them, that kind of ongoing attention can have a huge impact.

When you provide valuable information in an episodic fashion, your customers will come to expect and anticipate the friendly correspondence. And the continuous stream of content will lead them back for more.

The truth is, people today are so bombarded with emails, text messages and targeted advertisements that it’s easy for yours to get lost in the noise. You have to make sure customers understand exactly what you’re offering and know that you’re aware of their allegiance to your product or service.

The formula is really pretty simple: Loyal customers translate into dependable revenue and future growth, but loyalty doesn’t develop magically. To earn it, you have to dig into the data and listen to your gut instincts to figure out the true value of each customer.

Then, to prove to your best customers that you understand their desires and interests, provide them with intriguing content and special personalized offers. Once you have their attention, continue to shower those loyal customers with appreciation.

I promise, they’ll pay it back with interest.

This article was originally posted here on Entrepreneur.com.

Erik Huberman is founder and CEO of Hawke Media, deemed by Built in LA as one of the "Top 50 Startups in L.A." and one of the "Top 10 Happy Places to Work" by Happy City. Hawke Media is a leading outsourced digital CMO agency and provides a full sales, marketing and ecommerce team without the overhead. As a serial entrepreneur and a brand and marketing consultant for eight years, Huberman previously founded, grew and sold Swag of the Month and grew Ellie.com's sales to 1 million in four months.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Company Posts

How TomTom Telematics Can Keep Your Business Moving Forward

Successful businesses need to find ways to improve their margins while still delivering excellent and efficient customer service. VDM’s CEO, Deon van der Merwe, explains why this wouldn’t be possible in his business without TomTom Telematics’ solutions.

TomTom Telematics

Published

on

TomTom telematics

When TomTom Telematics entered the South African market in 2010, the local team took a deep dive into the different industry verticals they were servicing.

The more they got to know their customers, the more they realised a different solution was needed to address local conditions, and a subscription model was introduced whereby customers didn’t need to invest a large capital outlay into TomTom Telematics’ technology, but would receive the tech and software, including installation, at no extra cost, in exchange for a monthly subscription fee.

This model gives SMEs affordable access to TomTom Telematics’ solutions, but it’s had another benefit as well: As TomTom Telematics introduces new innovations, existing customers can benefit — without the costs associated with replacing all of their existing technology themselves.

An indispensable tool

For a transport and logistics business like VDM Group, which has more than 160 vehicles on the road, this means they have access to incredible new offerings, without needing to replace their TomTom units themselves.

“TomTom plays a critical role in our business,” says Deon van der Merwe, CEO of VDM Group. “It’s an indispensable tool in ensuring quality customer feedback and the management of KPIs for all supply chain stakeholders.

“Earlier this year, TomTom Telematics launched their New WEBFLEET product. We were very satisfied with what we had, and yet they still approached us and offered to replace all our existing units with new tablets, and they’re covering the installation costs,” explains Deon.

Related: Driving Your Business Growth Towards More Customers

“New WEBFLEET is the result of TomTom innovating their product based on customer feedback from around the world, and the local team wanted to ensure we had access to the additional functionality and innovations that had been introduced.”

Seamless integration with your network

According to Deon, the new TomTom PRO 8275 units seamlessly integrate VDM’s fleet scheduling software with information they extract from TomTom, including individual vehicles’ standing time and arrival notifications.

“The software from TomTom is open API, which means that all our various applications can communicate and interact with each other,” he explains. “From a productivity perspective, we no longer need to manually capture any trip information.

In addition, we have every conceivable piece of data available that will assist us to run a leaner, more cost-effective fleet, enabling us to ensure that we are delivering on all our KPIs — particularly with regards to meeting our customers’ needs.”

Related: Changing The Shape Of What’s Possible

VDM is a large transport business, but Deon believes the benefits for SMEs are as great, if not more so. “Many SMEs don’t have the back-office support that we do. The ability to capture and use this information without a team of admin specialists at your disposal is a huge competitive advantage for smaller businesses,” he says.

Offering you the competitive edge

VDM offers a specialised logistics service that creates custom-made options for clients. In order to ensure the most optimal and cost-effective solutions, while still ensuring top quality delivery, they need to consider special and complex individual customer requirements, from the point of origin to the point of destination, before finalising a customer-specific solution.

“We take into account a host of factors, including inventory carrying costs, volume requirements, product specific factors and route to market,” explains Deon.

“Road transport significantly impacts total supply chain costs, and if not managed properly, can have a severe impact on the sustainability of any particular channel. We try and manage this risk by continuously improving our service through innovative logistical solutions, the use of advanced technology, vertical integration and a team of passionate and talented experts.

TomTom assists in creating differentiators

“This focus has helped us to develop a market offering that includes dedicated and completely flexible inter-modal solutions, which is a big differentiator for us. TomTom Telematics plays a key role in our total productivity, helping us measure the performance of road transport across our supply chain.”

Deon believes that what you don’t measure you won’t know.

“TomTom provides updated fleet statistics that allow us to constantly benchmark our fleet against pre-defined route surveys and, in so doing, enables massive savings in fuel and total turnaround time.

Communicating via the WEBFLEET platform also helps us save time and creates a formal trail of correspondence with our drivers. I don’t believe it’s possible to successfully run a business like ours without a solution like this.”

Continue Reading

Company Posts

Sasfin Continues To Support SME Growth

Sasfin’s equity stake in fintech lender Payabill set to enhance SME growth.

Sasfin

Published

on

By

sasfin-business-growth

In another major step forward in supporting growth in SMEs, Sasfin today announced that it has acquired a strategic stake in fast-growing fintech lender Payabill.

Payabill, a 100% digital lending business, provides working capital and/or trade finance to small businesses. The collaboration between Sasfin and Payabill accelerates financing opportunities for customers.

Sasfin, South Africa’s leading business challenger bank, last year successfully launched its digital platform, B\\YOND, for SMEs.

“Sasfin has been investing in fintechs, building digital capabilities (such as B\\YOND) and working with third parties (such as XERO Accounting) for a number of years with the aim of adding value to our business and wealth clients. Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment,” says Sasfin CEO Michael Sassoon.

Payabill CEO Eli Michal launched the pioneering fintech start up in SA in 2017. Payabill settles suppliers directly for its clients and allows clients to select their own extended payment terms. “We are incredibly excited by the opportunity afforded to Payabill by having Sasfin as an equity and debt partner. Sasfin will provide access to new channels and much needed funding that enables us to support the growth of small business finance in South Africa,” says Michal.

Michal started the fintech as he “wanted to enhance access to finance for small businesses in South Africa. We all know that boosting small business creates jobs and enables growth. Traditional lenders have neglected this segment of the market due to the high costs associated with on-boarding and assessing these customers, as well as managing their credit risk. It made no sense to us that a retail consumer could get multiple forms of credit, almost instantly via electronic channels, but small businesses could not. They were being neglected. With this in mind, we set out to build a completely paperless, digital solution to address this market’s unique requirements.”

Currently, Payabill offers loans of up to R150 000 to businesses. The intention is that with the investment made by Sasfin, Payabill will be able to offer larger loans to SMEs in the near future.

The alignment of Payabill’s aims and Sasfin’s long-term focus on small business in SA made for an ideal partnership. “SMEs can now borrow digitally, via Payabill, and bank via B\\YOND from Sasfin – reducing admin and costs which often stifles small business growth. Both B\\YOND and Payabill are gaining meaningful traction in the SME market and there are a host of additional digital initiatives that we are working on to further help small businesses thrive,” says Sassoon.

“While Sasfin has always offered a trade and debtor finance solution, this was largely for more established businesses. The new offering speaks to smaller businesses that are passionate about growth, and our larger Trade and Debtor Finance offering will be there to support businesses that reach the next phase in their development,” says Sassoon.


Sasfin Holdings Limited (“Sasfin” or “the Group” or “the Company”) is a bank-controlling company listed in the “Financials: Investment Services” sector of the JSE Limited (“the JSE”).  Sasfin and its subsidiaries provide a wide range of complementary banking, financial and related services.

Continue Reading

Company Posts

Driving Your Business Growth Towards More Customers

Designed to help its customers get the most from their businesses through the right telematics solution, New WEBFLEET can help you reach your customers quicker, get more done, improve efficiencies, save costs and boost your revenues.

TomTom Telematics

Published

on

business-fleet-management

Europe’s highly regulated operating environment has made telematics ubiquitous in business. On the one hand, this means industries across the spectrum have become safer, more efficient and highly productive across the EU. On the other, it’s much harder to stand out from the crowd when everyone follows the same best practice standards.

“We don’t have those same stringent regulations in place,” says Justin Manson, Sales Director, Africa at TomTom Telematics. “Our clients have realised what a huge competitive advantage this actually offers them though.

“Locally, everyone understands the role that telematics plays in tracking what your drivers are doing right and wrong, and use it as a tool for encouraging good driving practices, but there’s so much more to this solution, and we’re making it our mission to help business owners really use it to their benefit.

“When deployed across the organisation to its full capabilities, a telematics system can radically improve productivity and workflow. Done correctly, a business can save up to 10% on its bottom line, and redeploy that cash into the company’s growth, thanks to drivers reaching customers quicker and getting more done. The right data also increases productivity and ensures better turnaround times.”

Thomas Schmidt, MD of TomTom Telematics, loves visiting South Africa for this very reason. “Because so many business owners aren’t using telematics to their full extent, there’s such a huge opportunity for us to assist businesses in their growth here,” he says. “We deliver a high-value stack of products that can change the way companies operate, and most importantly help them save money and make money. The challenge for us is educating our customers so that they understand what our solutions offer, and the incredible impact they can have on a business. We consistently improve these solutions based on customer feedback as well, making them very much from customers for customers.

Related: Why Your Fleet Management Plays a Pivotal Role In Your Business

“Anyone can buy a map for less than R100. Why invest in such expensive devices? The answer is because we’ve developed solutions that change lives. With the right data — and access to that data — you increase safety, simplify your business, drive efficiencies, increase your output and customer service, and ensure you are always productive and reliable — across the organisation. And that impact can be measured, and given a real ROI value.

“Imagine the impression companies that operate at that level make on their industries. They stand out from their competitors. There is so much room for growth in South Africa as we deploy these solutions.”

Game-changing solutions

As an organisation, TomTom Telematics is focused on continuous growth and innovation as well, constantly learning from market conditions, its customers and industry needs to improve its product offerings.

The result is the launch of New WEBFLEET in February 2018. “We’ve increased the value we offer our customers,” says Thomas. “We’ve collated data from hundreds of thousands of customers around the world who gave us their feedback through surveys, and New WEBFLEET is a window into easy-to-use, smart fleet management that is a game changer for companies.”

“TomTom Telematics is in the business of helping businesses,” agrees Justin. “Our goal is help our customers master their challenges. The right data at your fingertips will help you change the way you operate. That’s our goal. How much cash is being left on the table in an organisation because of inefficiencies?”

Introducing New Webfleet

The smartest way to manage your vehicles and mobile workforce

tomtom-telematicsTomTom Telematics’ state of the art Software-as-a-Service (SaaS) fleet management solution, with best-in-class user interface, is inspired by two decades of working together with customers to achieve more for better fleet management. New WEBFLEET is everything you need to manage your vehicles in the cloud, in real time. It allows you to monitor reports and dashboards, manage orders/workflow, and improve driving behaviour, safety and service, helping you save fuel and reduce costs.

Best-in-class user interface

  • A future-proof platform with a completely renewed interface, based on the latest HTML5 technology and driven by continuous innovation.
  • Simple and clean interface, with minimised clicks for faster working.
  • Intuitive functionality, means it is more accessible for greater impact across your business.
  • User rights management and state-of-the-art data handing ensures the highest level of data privacy and data security.
  • Fast access to the right information.

Related: Fleet Tools Will Help You Get More Done In Less Time

Map view

Know where your vehicles are and where they have been. Different map options such as Google, Google Street View or satellite map are enriched with traffic information, giving you a more detailed view on what’s happening on the roads. Toggle between different types of information on the map such as traffic, addresses and areas and create specific views, so you only see the information you need.

Dashboard

New WEBFLEET’s dashboard gives an overview of performance at a glance. Up to 27 KPIs can be used to track the performance of vehicles, individuals, benchmark teams or give a simple overview. This helps you to track real-time performance against your pre-defined KPIs.

Reporting

New WEBFLEET gives you instant access to the information that matters, meaning you can spot trends over time and use real-time information to make smarter and more informed decisions. You can instantly download or schedule reports to help you stay on top of everything — from fuel efficiency and legal compliance to quality of service.

Manage on the move

New WEBFLEET is optimised so you can manage your fleet on any device by entering WEBFLEET through a web browser or by downloading the WEBFLEET Mobile app on your smartphone.

Send routes direct to drivers

  • Plan accurate routes in New WEBFLEET by adjusting multiple variables such as location, time of departure/arrival, traffic and vehicle type.
  • Get a choice of alternative routes, as well as suggested fastest route with traffic.
  • Customise your route by simply adding new waypoints, or dragging and dropping existing waypoints on a route. Then choose from guided or forced route* options.
  • Send planned routes directly to a TomTom PRO driver terminal to keep your drivers on the right track.

Related: Time Is Money And It’s Time You Saved Both When Running Your Fleet

Personalised Map views*

  • Create your own saved map view to reach information you need fast.
  • Switch between vehicle groups or areas, without needing to adjust the map filters and zoom levels. n

Personalisation

Many ways to customise WEBFLEET to suit individual requirements from personalised views to adding information to make what you see more informative on one page.

Plan a route the way you want it

Use multiple variables (including waypoints) to give fastest or most efficient routes.

Access WEBFLEET

Across different device types, allowing you to always stay on top of business.

Simple, clean and easy to administer

Toggle between views to get the right information to focus on the task in hand. Get the right information to the right people at the right time, keep data secure and in the right hands.

Send routes to driver terminals

In real time, ensure drivers follow or avoid specific routes.

Visit telematics.tomtom.com/tellmemore and follow us on Twitter @TomTomWEBFLEET

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending