FirstPerspective • June/July 2006

THE PAYOFF — INCREASED CUSTOMER LOYALTY, BETTER CUSTOMER RETENTION

Research can enlighten you to take action with:

›	At-risk customers who don’t feel bonded to your company

›	Advocates who could be sold additional products and services

›	Detractors who can actually do harm to your brand by spreading negative word of mouth

There are many ways to build a strong foundation. Increasingly, companies across all industries are seeking answers beneath the surface. To understand how to create a stronger customer bond, and hence a better foundation, it’s critical that you first know the attributes of a loyal customer, and second, that you know where your customers stand. With a firm grasp of your customers’ perceptions — instead of costly assumptions — you can map out winning communications strategies that are actually targeted to your specific challenges.

Some of the biggest challenges center around miscommunication during the customer relationship. Customers may be disappointed at the end of a promotional offer. They may feel neglected after the attentive welcome phase has waned. They may perceive the company to be uncaring and unappreciative of them as customers.

And then they will head straight for your competitor.

Knowledge is power
If you don’t know the source of the problem, you can’t act on the solution. First Marketing has conducted our Relationship Index Survey with nearly 20,000 customers from companies in various industries. The survey uncovers customers’ attitudes and beliefs toward the company, using very specific measures of customer bondedness.

Leading companies who participated in the survey realized just how bad the problem was. Customers gave them an earful, scoring them low on statements like the company “listens to and cares about my needs,” “provides valuable offers and services that are relevant to me” and “I feel valued and appreciated as a customer.” Many customers were not interested in purchasing additional products and services, or worse, not willing to recommend the company to friends and family. Referrals are one of the strongest indicators of consumer loyalty.

THE POWER BUNDLE:
Achieving marketing nirvana

Together with the Relationship Index Survey, First Marketing also offers a wide range of communications programs — including versioning and one-to-one marketing — that can be tailored specifically for each client. Many clients have found that bundling the Relationship Index Survey with a smart communications program achieves bottom-line results. Our 12-month Power Bundle includes:

›	Six bimonthly print newsletters or 12 monthly e-mail newsletters.

›	Two Relationship Index Surveys, including detailed reports.

›	Turnkey execution from a specialized team of marketing experts.

Current clients receive a special discount by participating in this program.

Knowing your customers’ level of bondedness cuts a clear path to the next piece of the puzzle: creating a consistent communications strategy.

No more miscommunication
When you know what buttons to push, connecting with your customers becomes much easier. Depending on your customer feedback and how you segmented your study, you have options to address every need:

Challenge:
Customers feel the company does not provide valuable offers and services that are relevant.

Solution:
Create right-customer, right-time communications with more targeted product education and offers. Establish ongoing touchpoints, like a newsletter or e-mail program, that reinforce the value of your company, educate about product offerings and create a dialogue with customers. Promote offers not available to the general public. Version or personalize communications to address the needs of key customer segments or individuals.

Challenge:
Customers do not feel valued and appreciated.

Solution:

Show appreciation to your customers by incorporating touchpoints into your communications program that welcome new customers, thank existing customers and recognize referrals. New customers are especially disposed to recommend your services to family and friends. Consider an incentive for referrals to further cement the bond.

Finally, it’s imperative to analyze your results after delving into your communications plan. First Marketing recommends a second Relationship Index Survey 12 months into your program. As a comparison study, it measures the impact of your original program while giving you additional insight into untapped areas. It also allows you to hone your marketing strategy further.

With customer insight, you have the tools to lay your foundation and increase customer retention through effective communications and ongoing results analysis.

For a limited time, receive a FREE white paper, “Are you asking the right questions? Translating customer insights into loyalty-building strategies,” featuring an aggregate report of our Relationship Index Survey. Compare how your industry stacks up with all other industries surveyed. Click here for your FREE copy and to learn more about First Marketing’s Power Bundle program.

Neil Rosenblum, Vice President of Business Development at First Marketing, consults with Fortune 500 companies on their customer communications, retention and loyalty needs. Neil can be reached at nrosenblum@first-marketing.com.