How Velvet Rope Marketing can transform Customer Loyalty (Part 1)

Customer Centricity Quiz

“We are a customer-centric company.” We hear this all the time. Yet, many companies lose out to competitors. Their customers surely did not think they were customer-centric! How can you ensure your company is not of those?

Here is a Customer Centricity quiz to help you understand how well your business builds the right relationships with your customers. Give yourself 1 point for every Yes that you answer.

1. Do you collect data at every customer touchpoint (offline, online, call centre, etc.)?
2. Are you able to get a unified view of every customer?
3. Do you know the identity, revenue and profitability contribution of your best customers?
4. Can you predict the lifetime value of all your customers?
5. Is the lifetime value calculation based on recency AND frequency of customer transactions?
6. Is there a differentiated experience that you provide to your best customers?
7. Do you use info about your best customers to better target new customer acquisition and onboarding?
8. Do you have a referral marketing program targeted at your best customers?
9. If a best customer walked into a store or came to your website/app or churned (became inactive), would you know?
10. Is measuring and increasing customer loyalty one of the top 3 CEO priorities?

Scoring:

• 8-10: Congratulations! You (and your business) are a Customer Centricity Champion. The next phase is to look at actual implementation. Here are 5 more questions for you – same rules apply (count the number of Yes answers).
  • Do you practice the 4Rs philosophy – right message to the right person at the right time via the right channel?
  • Are you able to decide on the next best action for every customer to nudge them along in their journey?
  • Do you personalise the experience of your customers based on the data you collect?
  • Do your emails get delivered to the primary inbox of your customers? Do your push notifications get delivered to a majority (more than 75%) of your customers? (half point for each)
  • Do you have a culture of testing every communication for impact?
• 6-7: Customer Centricity Learner. The DNA is there, but there is room for improvement. Look at each of the questions where you answered a No and prepare a plan to make that into a Yes. Your next action should be to convert one No into a Yes every quarter going forward – so pick one of the themes and begin.
• Less than 6: Customer Centricity Newbie. You are leaving a lot of money on the table for competitors. There could be many reasons, but perhaps the most important is that customer centricity needs to immediately become a CEO priority and driven across all departments.

As you would have guessed, the customer centricity quiz is centred around customer loyalty and has embedded in it many ideas for actions that can help grow revenue and profits for your business. Creating lifetime customer loyalty is the most important goal of your business when it starts – and yet, many lose their way with the passage of time opening the way for attack by data-driven, customer relationship-centric, loyalty-obsessed competitors. Bringing the focus back to customer-centricity, attracting the best customers in the category and fostering lifetime loyalty is the key for growing revenues and profits.

Tomorrow: Part 2