Boost Customer Loyalty
‘Loyalty’ is often associated with points schemes and membership cards.
Satalytics helps Ecommerce companies to measure & improve loyalty, unlocking the word of mouth, satisfaction, and profit issues that hold back growth.
When people hear the phrase ‘customer loyalty’, often they immediately think of loyalty schemes, points cards, coupons, and membership tiers. But those are simply the part of the Customer Loyalty iceberg that sits above the water – the bit that everyone sees instantly. Loyalty is created, or damaged, by many other factors – most of them less visible than loyalty schemes:
- Overall satisfaction.
- Individual frustrating experiences. (glitches)
- Repeated frustrating experiences. (negative patterns)
- Market competition.
- Product quality.
- Product perception.
- Delivery quality.
- Delivery perception.
- Purchase experience.
- Cost. (both of your products, and the cost to a customer to move to a competitor)
Why do you shop at one local store more regularly than another you pass just as frequently? Why do you eat more frequently at one particular restaurant rather than another? It’s more likely to be due to one or more of the above factors, than it is a points scheme. Many of these factors are measurable, and – even where they are not – many can be monitored and improved upon.
The Importance of Loyalty
But why is loyalty important anyway? And in particular, why for Ecommerce companies? For some retailers this is obvious. For some, it’s a little bit hidden: Few retailers have the ability to see when their customers become ‘disloyal’, and therefore they do not recognise it as being an issue.
The best way to illustrate the effect of improved loyalty is through a simple example.
Here are the metrics for an Ecommerce business. On the left is the ‘normal’ situation; on the right is an illustration showing how things change if they manage to boost loyalty to the extent that each customer places one extra order:
As you can see, the customer acquisition costs remain the same, the revenue per order, and margin all stay the same. The only difference between the ‘Normal’ situation & the ‘Loyalty boosted’ situation is each customer places just one additional order. The effect of that single additional order per customer means their profit more than quadruples (from 16.5 to 71.5).
Improving Customer Loyalty
Customer loyalty is invisible to many ecommerce companies, but those who understand its importance really pay attention to it. If a customer ordering from you 10 times per month becomes unhappy, that’s a much bigger deal than a customer who orders once per month. And, equally, if you can turn a customer who orders from you once per month into a 10-a-month buyer, that’s also a big deal.
The 3 crucial factors required to begin increasing customer loyalty:
- Make sure you have visibility of your customers. Which transactions are from new, which are from returning customers? Who are your larger/smaller spenders? Etc. Ideally you should also have an easy mechanism for checking on your most loyal customers.
- Gain visibility into one-off issues. For example: If one of your top 20 customers has an issue, there should be a mechanism encouraging them to notify you about it, rather than simply take their custom elsewhere.
- Gain visibility into pattern issues. Ie: The issues in your products, process, or service, that can affect multiple customers.
Satalytics automatically gathers feedback from your customers. We do that at the point of purchase, and after delivery. We categorise all of that and join it with transaction history, offering you a ‘single customer view’ that includes satisfaction & customer feedback.
We offer data at an individual customer level, allowing you to address individual loyalty issues.
And… Satalytics provides dashboards, visualisations, automated email reports, and exploration tools to spot and fix patterns holding back conversion and loyalty.
Satisfaction reports & insights
Satalytics both helps you to boost loyalty among your customers, and provides the reporting to understand how you’re progressing. Our dashboards & reports are designed to be accessible for everyone – from your marketing team, to your customer service people, to your CMO and CEO.
Reports are realtime, and available to access at any time, plus our automated daily or weekly email reports pick out key information to drip feed the most useful insights to your teams & let you tackle problems instantly, fixing the issues that hold back your customer loyalty as they arise.