Text Box: Some Light Reading! The benefit of loyalty makes sense, but is less easy to prove. In recent years, marketing thinkers such as the Harvard Business School’s Fred Reichheld have studied loyalty extensively. This work is both affirming and inspiring as it includes case studies (Amazon.com and Enterprise Car Rental, as examples) that illustrate the attitude and specific programs that can lead to loyalty. Among Reichheld’s books: The Loyalty Effect, Loyalty Rules and The Ultimate Question Text Box: For most businesses, achieving new customers is hard work, and expensive. We advertise, invite, sell, incentivize, follow-up, etc. etc. etc. If this cycle is our basic marketing strategy, we’re on a treadmill that runs forever. Common sense tells us that earned customer loyalty is a better way to ring the cash register. We don’t work nearly as hard or spend as much for repeat business as for new customers. We know our repeaters; they know us; we have products that serve them well. There is less likelihood of price haggling, less likelihood of service errors, and more likelihood of keeping their business in a down economy. If we need to execute a business-building promotion, they are the most efficient possible target audience. The list truly goes on and on. But many small businesses do virtually nothing to build and maintain loyalty. Some of the reasons: - Illogical cost analysis: There’s a tendency to say, “I already bought and paid for their business; I can afford to spend any more on that group, while I try to get new customers. Of course, this illogic is laid bare when competitors swoop in and grabs our loyal customers. “I shoulda spent a few bucks to keep them, I guess!” - Lack of actionable data: This is big, and must be overcome, as a guiding principle of Client Path Marketing. We must have actionable data, meaning a method of categorizing and communicating with our Customers based on Client Path stage.

Loyalty!

Strong Customer Loyalty is a Hallmark of Highly Successful Organizations

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