Blog posts tagged customer loyalty

Shoreditch brews up a dis-loyal community

February 08, 2010 by James Ainsworth

Shoreditch’s bustling café society is thought to be the first place to offer customers a disloyalty card in order to drum up business for local independent baristas and reward customers for trying new places in the area.

The loyalty card is a well-established consumer psychology tool but the idea of collecting stamps from eight different coffee houses in order to gain a free coffee was dreamed up by award-winning barista Gwilym Davies to combat the homogenised high street coffee culture.

The reason behind teaming up with fellow independent coffee shops arose due to the overwhelming demand and lengthy queues at Mr Davies' shop on the back of winning the World Barista Championship.

Initially he tried suggesting nearby alternatives that he recommended on a whiteboard, something that might be the last thing a small retailer might want to do in a very competitive and cost-sensitive industry. But as a supportive gesture for fellow traders and to help satiate the increasing lust for good coffee, it still wasn’t enough and so the disloyalty card was born.

Speaking to the Evening Standard, Mr Davies' business partner, Jeremy Challender, said: “There are a lot more places opening, and as prices are the same, it seems a shame a lot of people haven’t experienced high quality coffee. It’s totally different to what you get in a high street chain.”

The partnership has seen eight independent coffee shops join in with the venture which, if successful, could see the consumption of 45,000 coffees and a new culture of using local coffee traders and award winning baristas that are passionate about the content of the cup they vend.

As a retailer, would you try a similar scheme with fellow businesses?

Posted in Customer care | Tagged shoreditch, loyalty, free, disloyalty, dis-loyalty, customer loyalty, competition, coffee, brista | 3 comments
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Companies lose half their customers every 5 years

March 09, 2009 by Robert Craven

According to a recent Harvard Business Review study, US companies lose half of their customers every five years, with two-thirds of them citing inadequate customer care as their primary reason for leaving...

"If customer loyalty is increased by just five per cent, profits can increase by 25 per cent. "
 
I often quote the figures from Leboeuf that up to 65% of clients leave you because they feel that you just don't care - you don't make enough effort.

So, how much does it cost for you to acquire one new customer? How long do they stay with you? What is the average gross profit/contribution over the life-time of a customer?

Actions:

  • Do a customer survey every three months - find out who is and is not happy with your service (90% of businesses have not done a survey in the last three months!)
  • Use a customer satisfaction/happiness form after as many customer interactions as possible
  • Find 10 ways to get closer to your customers right now!

How can you not want to have incredibly loyal customers right now?!

Posted in Customer care | Tagged lifetime value, customer retention, customer loyalty, Customer care | 2 comments
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