(Abstract) 100 Great Business philosophy: Philosophy 9: Customer Engagement

Concept 9 Customer Engagement

As business competition becomes increasingly fierce, companies should not only focus on attracting new customers, but also use rewards to retain existing customers. This will also attract more customers, get more profits from them.

Concept

The common feature of many industries is not only to attract customers, but also to maintain the continuous support of existing customers. One example of using information to promote customer integration and enhance competitiveness is the customer loyalty program. These plans have always been a feature of marketing solutions, and the recent air miles award is an example. At present, the number and type of companies implementing the customer loyalty program are growing, from bookstores (such as the WH Smith chain bookstore in the UK, which has an advanced database of millions of customer information) to credit card companies and telephone services (for example, the American MCI telecommunications company, It pioneered a discount program for friends and friends) and so on. With moderate advertising spending (only 5% of the advertising spending of at&t, which is dominant in the market), the company has increased its market share by 4% in fierce competition.

The originality of the loyalty program has always been surprising. It shows the brand value of each company and threatens competitors. For example, Virgin Atlantic uses a unique customer loyalty program to strengthen customer engagement and shorten the time it takes to attract new customers. Virgin Airlines offers a preferential treatment to customers involved in their competitor's loyalty program if these customers travel 10,000 miles on any British airline flight, they can get a dual-flight ticket for free. In this way, Virgin Airline has strengthened its brand advantage with its dynamic nature and flexibility.

Practical application highlights

§ Create a customer loyalty program to encourage repeated businesses and establish a positive brand image among the customer base.

§ Keep a close eye on the dynamics of your competitors while creating a customer loyalty program. What services do you provide to customers and what services are better and more attractive to customers than they provide?

§ Originality is required in the process of creating customer loyalty plans and using other methods of customer engagement. This is an area full of opportunities for innovation-take advantage of this.

§ Ask employees who provide direct services to customers about how best to improve customer loyalty.

(Abstract) 100 Great Business philosophy: Philosophy 9: Customer Engagement