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What is a Customer Loyalty Ladder?

What is a Customer Loyalty Ladder?

By: Content Team
Customer loyalty ladder

Many customers like to take their time evaluating products or services before fully investing in them. Some might choose to test out an exercise bike for 30 days; or pay a deposit on a smart-watch before deciding to buy it.

If they feel satisfied, it’s often reciprocated through brand investment and loyalty. They could end up buying more products in the future or vocalise their experience via online reviews.

All businesses should aspire to reach this level of consumer satisfaction. A great way to establish this is by using a customer loyalty ladder. This nurturing marketing process helps employers attain ultimate levels of allegiance from their buyers.

Let’s take a look at what a customer loyalty ladder is, what its benefits are, how each ‘rung’ leads to well-established consumer commitment.

What is a customer loyalty ladder?

A customer loyalty ladder is a measurement used to indicate how much customers interact with a business.

The strategy measures the level of commitment customers have with your products, services, or overall brand. It also looks at their behaviour and interaction with your business. For example, what products they’re buying or how they’re reacting to your services.

With a full understanding of the customer ladder of loyalty, businesses can grasp and encourage great experiences and retention. Employers can then establish marketing plans and strategies to target the right kind of customers – i.e., ones that’ll remain loyal in the long-term.

What are the benefits of using the customer loyalty ladder?

Employers gain numerous benefits when it comes to using a customer loyalty ladder strategy.  Let’s take a look at a few of them:

Repeat purchases and services

When customers are satisfied with a first-time product or service, they’re bound to come back for more. Think of it as having a great meal at a restaurant. You’re probably going to visit again and order the same thing – just to relive that great experience.

It’s exactly the same with loyal customers. They may be easily satisfied with buying the same product time and time again. Or, they could be more willing to try out other services your business offers.

This level of loyalty is unequivocal and cannot be manufactured. Once you’ve achieved it, employers must do their level-best to protect it well.

Increased revenue and brand-awareness

Loyal customers have a huge hand in the steady growth of your business – particularly in revenue and brand-awareness.

New customers may choose to test the waters before investing in a product or service. However, loyal customers are usually more willing – regardless of the price. That’s because it’s not just about buying an item. They’re investing in a great consumer experience that comes from trust, respect, and value.

This type of relationship isn’t difficult to establish. It doesn’t require huge amounts of money or complicated marketing schemes either. It’s all about your level of engagement. Through sales, experiences, and rewards, loyal customers soon become solid advocates for your business.

Honest and meaningful feedback

Invested customers will probably have grown accustomed to things being a certain way. Maybe they like receiving a gift voucher after every 10th purchase. Or prefer a particular service you provide at your store.

If these things change or are no longer available at their next visit, they’ll probably have something to say. This type of customer feedback is usually honest and meaningful. And should never be taken negatively or neglected.

If you do, you could end up jeopardising your relationship with them. Some may choose to stop interacting with your brand and take their ‘business’ elsewhere. Employers should listen to honest and meaningful feedback and take a note of what makes their customers happy.

Leads, consumers, clients and advocates

What does a customer loyalty ladder include?

There are four levels found on the ladder of customer loyalty: leads, consumers, clients, and advocates.

Each stage represents a type of customer that’s either satisfied with their experience or yearns to go higher. Let’s take a look at each level in more depth:

Level 1: Leads

The first ‘rung’ on a customer loyalty ladder are leads. Think of leads as new consumers. They’ve probably never interacted with your brand before, or aren’t considered to be your typical kind of customer.

At first glance, leads class as prospective buyers. They may visit your flagship store out of curiosity; or want to weigh up their options with other competitors.

However, they’ve shown initial interest in your business. As an employer, it’s up to you to nurture leads and aim to convert them into consumers.

Level 2: Consumers

The second ‘rung’ on the ladder are consumers. These people will have already used your product or service – forming their own opinion about your business.

There are a number of ways to retain consumers. The main aim is to encourage them to choose your brand over others. Employers may offer things like loyalty scheme benefits or monthly vouchers.

Consumers are convinced that your business is the only place that meets their needs. At this level, employers can then concentrate on converting consumers into clients.

Level 3: Clients

The third ‘rung’ on the ladder are clients. After continuous levels of brand experience, some consumers may choose to transition into clients.

Clients have a more personal type of relationship compared to the previous customers. They’re happy with what your business offers having tried and tested it. And are more likely going to continue buying your products or services.

Employers gain a lot from investing in business relationships with clients. However, one wrong step and they could defer back into consumers – or even fall off the ladder completely.

Level 4: Advocates

The last ‘rung’ on the customer loyalty ladder are advocates. Employers should aspire to convert all leads into advocates.

These people are often referred to as ‘brand-ambassadors’. They’re completely satisfied with your business and will think twice before visiting other competitors. Employers should do well to nurture these types of customer relationships.

Advocates will often share their exclusive customer experiences with others – sometimes for free. This is a great form of advertisement for your business. So, why not reward them for helping to grow your customer acquisition.

Utilise customer loyalty ladders with highstreetvouchers.com

Rewarding commitment and retention is crucial when it comes to customer loyalty. What better way to do this than by giving gift cards and vouchers!

At highstreetvouchers.com, we offer a variety of rewards that are guaranteed to help utilise your customer loyalty ladder strategy to its fullest.

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