An increase in the loyalty rate of only 5% can increase your profits by up to 85% (source: Harvard Business Review). Our agency has made a speciality of studying and increasing customer satisfaction and loyalty. We help you in the study and implementation of your strategy.
Why focus on customer loyalty?
Most companies deploy significant resources to acquire new customers. They forget that they only have to maintain and develop existing customers to ensure their growth.
On average, a company loses 50% of its customers every 4 years. By focusing your efforts on having loyal customers, you will develop your customer base and no longer be satisfied with keeping it constant.
First, we develop and help you to implement simple systems to control and measure customer loyalty. These systems may, for example, take the form of a quantitative questionnaire. In more complex cases, we use massive data (Big Data) to define performance indicators and measure loyalty based on the latter. A classic sign in retail is, for example, the RFM (Recency-Frequency-Money) index, which makes it easy to segment customers.
In a second step, we define a plan of action to activate, at all levels of the company, the incentives for loyalty, in particular through the increase in customer satisfaction.
A Harvard University study has shown that loyalty is the most powerful way to increase profits. Depending on the industry, a 5% increase in the loyalty rate can increase your earnings by 30 to 85%. The mechanisms leading to loyalty are complex. For example, it would be wrong to believe that customer satisfaction is the only factor influencing customer loyalty. In some sectors of activity, very different factors can significantly increase loyalty. Thanks to our qualitative market research techniques, we can discover these factors.
Example of projects to improve customer loyalty
IntoTheMinds has worked on numerous company cases in the following sectors:
- fast food restaurants
- pharmaceutical industry
- vocational training
By working with IntoTheMinds, you immediately benefit from this experience and the results obtained in similar or related sectors.
Here is an example of a customer project.
IntoTheMinds’ intervention for ProDegustation led to a 5-fold increase in loyalty and a 4-fold increase in word-of-mouth.
Based on these flattering figures, the company’s profits increased rapidly, attracting investors and leading to the sale of the company to Holding Videlot, owner of Château Pétrus in particular.
Customer satisfaction was measured by the company, but its significant increase was not sufficient to as many loyal customers as planned. However, the increase in the cost of acquiring new customers (paid ads on search engines) had to be offset by the rise in the loyalty of existing customers. IntoTheMinds has therefore set up a plan of action (partly deployed by the company itself) focusing on social media and on partnerships with individual key players in the sector.
IntoTheMinds has gone so far as to negotiate partnership contracts for its client. The rate of awareness of the company through word of mouth increased from 11% to 41%, which was accompanied by a decrease in acquisition costs, advertising costs and an increase in the customer loyalty rate from 4% to 25%.