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Why is loyalty so important and how do I improve it?

Loyalty is typically measured using basic customer data - such as 'how long an average  customer remains a customer', 'how much of the category spend you get per customer' or by simple 'customer satisfaction'.

These are great and very important KPIs. Though we are starting to wonder how important they really are in todays technology driven world, where  entrepreneurs like Uber and AirBnB able disrupt and destroy long-standing traditional businesses and the sudden shift in price and convenience makes measuring customer service level of traditional vendors redundant as they scramble to find a way to survive. And proving that the traditional measure of customer loyalty is irrelevant.

Whilst we could argue that it might be good to measure the rate at which customers leave a traditional taxi business, and adopt Uber would be a way to measure the loyalty of the old taxi firm, unfortunately it does not stop the migration and damage or destruction of the businesses concerned.

Thus we would argue that customer loyalty should increasingly be measured by the perceived value of the personalised messaging, relationships, technology, products and services offered by a business - especially those which are not available from its closest competitors. and as importantly is the ability of a business to be creative in deploying technologies that move it ahead of the disruptive curve.

For ideas - get in touch.

Posted by Simon Fortescue

Simon is passionate about helping businesses leverage technology to outstrip industry growth norms.

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