Loyalty Insights Overview
Loyalty Insights is a process that helps increase loyalty and repeat purchase. The process 1) examines the buying experience from the customers’ viewpoint, 2) identifies factors that drive loyalty and 3) provides a dashboard measurement system that helps stay on track to perform correctly on these loyalty drivers. The process has broad implications for both revenue generation and cost savings.
Questions that motivate Loyalty Insights
- Are we losing customers to competitors?
- Are we correctly poised for growth?
- Which customer issues should we focus on, and which issues are less critical?
- Why is price becoming more important to our customers?
- Does our ‘loyalty incentive’ program help us get real loyalty, or just reduce margins?
- How can we tell whether operational adjustments will impact loyalty down the road?
- What ‘early warning’ indicators will let us know if we’re at risk of losing loyalty?
Loyalty Dashboard
Once loyalty drivers have been identified, a dashboard is constructed and periodic measures taken. The result is a set of timely measures. Let's say you're implementing a new customer service initiative. How is the initiative affecting loyalty? Without feedback you'll need to wait a long time to find out. In fact, by the time you know the impact of the initiative, it will be too late to make changes. Frankly, you probably won't even be able to tell whether the impact was due to the initiative or in spite of it. With the Loyalty Insights dashboard you get continual feedback, similar to feedback provided by control charts used in operations management. The dashboard includes a set of charts; typically at least three. The top chart provides feedback on overall loyalty, based on a set of customized measures. Additional charts provide feedback on various factors that drive loyalty. The line on each graph provides overall scores, the yellow region tells us how many customers are loyalty-at-risk, and the red region tells us how many customers are not loyal - ready to jump ship. You can click on the set of graphs at the right for more details about the dashboard.