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Customer Loyalty
Ladder

Teguh Prayogo
Twitter : @teguh_trainer
Advocate

CUSTOMER LOYALTY LADDER
Client

•
•
•
•
•

Suspect
Prospect
Customer
Client
Advocate

Teguh Prayogo
Twitter : @teguh_trainer

Customer

Prospect

Suspect
Advocate

CUSTOMER LOYALTY LADDER
Client

• Suspect
Anyone who reads or hears an ad, looks
at a brochure or encounters some
other type of promotion is a suspect

Customer

Prospect

Suspect

• Prospect

Someone who pays attention to your
promotion

Teguh Prayogo
Twitter : @teguh_trainer
Advocate

CUSTOMER LOYALTY LADDER
Client

• Customers

Customer

Those who buy your product or service

• Client
A Customer who buys a second time

• Advocate
A Customer who gives unpaid advertising for the
products / services of a business
Teguh Prayogo
Twitter : @teguh_trainer

Prospect

Suspect
Teguh Prayogo
Twitter : @teguh_trainer
FACTS :

It takes a least 3 times as much money to attract a
new customer via traditional forms of advertising as
to re-attract a repeat customer

Teguh Prayogo
Twitter : @teguh_trainer
FACTS :

It takes at least 30 times
as much marketing
money to attract a new
customer via
traditional forms of
advertising as to have
a satisfied customer
find new customers for
you
Teguh Prayogo
Twitter : @teguh_trainer
FACTS :

Teguh Prayogo
Twitter : @teguh_trainer

Most business owners spend
less than 5% of their
marketing dollars on their
customers and spend
95% of their marketing
dollars trying to find new
customers
Advocate
Client

5% Marketing
Rp

TRADITIONAL
INVESTMENT

Customer

Prospect

Suspect

Teguh Prayogo
Twitter : @teguh_trainer

95% Marketing
Rp
Advocate
Client

ADVERTISING
INVESTMENT

Non Traditional
Advertising

A great
marketing
company
spends
money here

Customer

Prospect

Suspect

Teguh Prayogo
Twitter : @teguh_trainer

Traditional
Advertising

Most
marketing
company
spends
money here
Invest in Keeping Customers
Advocate

To Keep Customers:
30% Marketing Rp

Client
Customer
Prospect

Suspect

To Find Customers:
70% Marketing Rp
Recommendation

30% of your marketing Rp should be
spent on keeping customers.
Keeping them happy.

Not 5 %
CUSTOMER LOYALTY LADDER

Goal :
Invest in developing
satisfied customers

Teguh Prayogo
Twitter : @teguh_trainer
How can You Accomplish This?
• Know who your customers are
• Know that your best customer is your
most recent satisfied customer
• Know that your best word-of-mouth
advertising comes from your most
recent satisfied customer
• Act in a way that moves people up
the ladder
Teguh Prayogo
Twitter : @teguh_trainer
Lessons Learned
The most recent satisfied
customer who has
purchased products from
you is the least expensive
marketing way to find new
customers. People love to
tell if they are happy.
Your worst customer, will rip
you apart to all their friends
Is your most recent unhappy
customer
Teguh Prayogo
Twitter : @teguh_trainer
Lessons Learned

To climb the loyalty ladder,
business owners must
exceed customer expectations
Teguh Prayogo
Twitter : @teguh_trainer
How to make Loyal
customer ?
•
•
•
•

Play
Make Their Day
Be Present
Choose Your Attitude

Teguh Prayogo
Twitter : @teguh_trainer
1.
PLAY
Benefits of “Play” :
•
•
•
•
•

Happy people treat others well
Fun leads to creativity
The time passes quickly
Having a good time is healthy
Work becomes a reward not just a way to rewards

Teguh Prayogo
Twitter : @teguh_trainer
Implementing

Play

• Start a joke of the month contest with its own bulletin
board
• Add more color and make the environment more
interesting
• Add more life with plants and an aquarium
Teguh Prayogo
Twitter : @teguh_trainer
2. Make
Their
Day

Benefits of “Make Their Day”
 It is good for business

 Serving our customers well will give
satisfaction
 It will focus our attention away from our
problems
 It is healthy, it feels good and will unleash
more energy

Teguh Prayogo
Twitter : @teguh_trainer
Implementing

Make
Their Day
• Pull together focus groups to study
ways we can be of service to
customers
• Have a monthly and annual award
for service based on customer
recommendations

• Appoint a special task force
dedicated to surprising and
delighting our customers
Teguh Prayogo
Twitter : @teguh_trainer
3. Be
Present
Benefits of “Be Present” :
• Important opportunities do
not escape
• Customers know if you are
listening
• Customers feel important

Teguh Prayogo
Twitter : @teguh_trainer
Implementing

Be
Present

• Encourage one another to be
present. Ask: “Is this a good
time? Are you present?”
• Establish a code phrase: “You
seem distracted” to signal a
present moment issue

Teguh Prayogo
Twitter : @teguh_trainer
4. Choose

Your
Attitude
• By accepting that you choose your
attitude, you demonstrate personal
accountability and proactivity
• While we may not be able to do what
we love, if we choose to love what we
do, our work area will become an oasis
of energy, flexibility and creativity

Teguh Prayogo
Twitter : @teguh_trainer
Implementing

Choose
Your
Attitude
• Purchase copies of Personal

Accountability: The Road to a
Rewarding Work Life for Everyone.
Organize discussion groups around
the book - follow with similar topics

• Prepare an attitude menu to post in
the office
Teguh Prayogo
Twitter : @teguh_trainer
Conclusion
• Increasing the quality of
service can increase both
customer loyalty and
employee retention
significantly
• People may “job hop” because
they haven’t found acceptable
work environments
Teguh Prayogo
Twitter : @teguh_trainer

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The Customer Loyalty Ladder

  • 3. Advocate CUSTOMER LOYALTY LADDER Client • Suspect Anyone who reads or hears an ad, looks at a brochure or encounters some other type of promotion is a suspect Customer Prospect Suspect • Prospect Someone who pays attention to your promotion Teguh Prayogo Twitter : @teguh_trainer
  • 4. Advocate CUSTOMER LOYALTY LADDER Client • Customers Customer Those who buy your product or service • Client A Customer who buys a second time • Advocate A Customer who gives unpaid advertising for the products / services of a business Teguh Prayogo Twitter : @teguh_trainer Prospect Suspect
  • 5. Teguh Prayogo Twitter : @teguh_trainer
  • 6. FACTS : It takes a least 3 times as much money to attract a new customer via traditional forms of advertising as to re-attract a repeat customer Teguh Prayogo Twitter : @teguh_trainer
  • 7. FACTS : It takes at least 30 times as much marketing money to attract a new customer via traditional forms of advertising as to have a satisfied customer find new customers for you Teguh Prayogo Twitter : @teguh_trainer
  • 8. FACTS : Teguh Prayogo Twitter : @teguh_trainer Most business owners spend less than 5% of their marketing dollars on their customers and spend 95% of their marketing dollars trying to find new customers
  • 10. Advocate Client ADVERTISING INVESTMENT Non Traditional Advertising A great marketing company spends money here Customer Prospect Suspect Teguh Prayogo Twitter : @teguh_trainer Traditional Advertising Most marketing company spends money here
  • 11. Invest in Keeping Customers Advocate To Keep Customers: 30% Marketing Rp Client Customer Prospect Suspect To Find Customers: 70% Marketing Rp
  • 12. Recommendation 30% of your marketing Rp should be spent on keeping customers. Keeping them happy. Not 5 %
  • 13. CUSTOMER LOYALTY LADDER Goal : Invest in developing satisfied customers Teguh Prayogo Twitter : @teguh_trainer
  • 14. How can You Accomplish This? • Know who your customers are • Know that your best customer is your most recent satisfied customer • Know that your best word-of-mouth advertising comes from your most recent satisfied customer • Act in a way that moves people up the ladder Teguh Prayogo Twitter : @teguh_trainer
  • 15. Lessons Learned The most recent satisfied customer who has purchased products from you is the least expensive marketing way to find new customers. People love to tell if they are happy. Your worst customer, will rip you apart to all their friends Is your most recent unhappy customer Teguh Prayogo Twitter : @teguh_trainer
  • 16. Lessons Learned To climb the loyalty ladder, business owners must exceed customer expectations Teguh Prayogo Twitter : @teguh_trainer
  • 17. How to make Loyal customer ? • • • • Play Make Their Day Be Present Choose Your Attitude Teguh Prayogo Twitter : @teguh_trainer
  • 18. 1. PLAY Benefits of “Play” : • • • • • Happy people treat others well Fun leads to creativity The time passes quickly Having a good time is healthy Work becomes a reward not just a way to rewards Teguh Prayogo Twitter : @teguh_trainer
  • 19. Implementing Play • Start a joke of the month contest with its own bulletin board • Add more color and make the environment more interesting • Add more life with plants and an aquarium Teguh Prayogo Twitter : @teguh_trainer
  • 20. 2. Make Their Day Benefits of “Make Their Day”  It is good for business  Serving our customers well will give satisfaction  It will focus our attention away from our problems  It is healthy, it feels good and will unleash more energy Teguh Prayogo Twitter : @teguh_trainer
  • 21. Implementing Make Their Day • Pull together focus groups to study ways we can be of service to customers • Have a monthly and annual award for service based on customer recommendations • Appoint a special task force dedicated to surprising and delighting our customers Teguh Prayogo Twitter : @teguh_trainer
  • 22. 3. Be Present Benefits of “Be Present” : • Important opportunities do not escape • Customers know if you are listening • Customers feel important Teguh Prayogo Twitter : @teguh_trainer
  • 23. Implementing Be Present • Encourage one another to be present. Ask: “Is this a good time? Are you present?” • Establish a code phrase: “You seem distracted” to signal a present moment issue Teguh Prayogo Twitter : @teguh_trainer
  • 24. 4. Choose Your Attitude • By accepting that you choose your attitude, you demonstrate personal accountability and proactivity • While we may not be able to do what we love, if we choose to love what we do, our work area will become an oasis of energy, flexibility and creativity Teguh Prayogo Twitter : @teguh_trainer
  • 25. Implementing Choose Your Attitude • Purchase copies of Personal Accountability: The Road to a Rewarding Work Life for Everyone. Organize discussion groups around the book - follow with similar topics • Prepare an attitude menu to post in the office Teguh Prayogo Twitter : @teguh_trainer
  • 26. Conclusion • Increasing the quality of service can increase both customer loyalty and employee retention significantly • People may “job hop” because they haven’t found acceptable work environments Teguh Prayogo Twitter : @teguh_trainer