While the key to business success is creating happy and loyal customers, you still need to get them to generate more revenue. A good NPS score and low churn rate shows your customers are satisfied but you only benefit when these customers act on their positive feelings. An article in Harvard Business Review, Make it Easier for Customers to Buy More by Bain Capital’s Rob Markey, shows how to convert this satisfaction into profits.
Learn more about your most loyal customers
The first key to generate more profits from your loyal customers is to understand them better. Markey makes the point that companies focus on learning why detractors, or unhappy customers, are dissatisfied but they do not put the same effort in understanding why the happy customers are happy. As Markey writes, “Converting feelings into action requires knowing exactly what you did to earn their loyalty, so you can replicate the action and extend it. To maintain that kind of intimate relationship with your most loyal customers, you have to create effective mechanisms for staying in close touch.”
Add to all of your communication channels feedback loops to ascertain why they love your company. Have your account or customer service reps ask customers why they first became enthusiastic. When sending out NPS surveys, make sure you ask those providing high scores the reason they gave such a score. Have customers post stories on social media on why they like your offering. Have events for your top customers and ensure part of the agenda is having customers discuss how they fell in love with your brand. Use all of your channels not only to help your customers but to learn from them.
Tune your offerings to meet their needs
When communicating with your best customers, you will learn both what they like and do not like about your offering. You will also understand if your competitors are offering something they want that you do not offer. Markey writes, “ideally, your offerings should be so attractive to your loyalists that they have no reason to look elsewhere for additional products or services.”
Once you understand your customers needs, then adjust your product to meet these needs. It may be by providing additional features or more support services. It could also entail offering your product through new distribution channels or in another format. The key is understanding what your best customers want from your product but are not getting, then adjusting your product to fill this need so they do not move to competitors.
Help them spread the word
Since your most loyal customers by definition love your offering, you want to harness this positive vibe by getting them to promote you to their friends. As people communicate best via stories, you need to provide them with stories that they can share. These stories can range from great interaction with your staff (maybe customer service, VIP management or on Facebook), a great experience with your game or product or even a little bonus you got via email. Once they have the stories, you need to facilitate them sharing the stories. This sharing often is by social media but it can be video testimonials on your website or even quotes in your game.
Loyal customers drive profits
While it is critical to create incredibly satisfied customers, that is not the end of the battle. You need to learn from them, use this knowledge to make your products even more suited to them and then turn them into advocates.
Key takeaways
- The first key to generate higher profits is learning from your most loyal customers why they love your product.
- The second key is taking this knowledge and further tweaking your product to meet your loyal customers’ needs.
- The final key is getting these loyal customers to advocate for you by sharing stories that show their friends why your product or company is great.
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