Difference Between Repeat Customers and Loyal Customers

foreign
ER customer service and experience
expert today I'm going to explain the
Loyalty Gap now recently I discussed the
trust gap which is the difference
between an organization's belief that
its customers trust them and the
percentage of customers who actually do
trust them and I've covered the
different Gap Concepts in the past and
it's time to add yet another to the list
and that is the Loyalty Gap by the way
this is a perfect time to mention
International customer loyalty month
which happens every year in April it's a
time to focus some extra care and
attention on your loyal customers you
can learn more at
www.customerloyaltymonth.com so back to
the Loyalty Gap this is the gap between
the percentage of customers you think
are loyal and customers who actually are
loyal if you've been filing the work you
may remember that I preach there's a big
difference between a repeat cost
customer and a loyal customer a customer
that comes back again and again could be
mistakenly labeled as a loyal customer
before we can call someone an oil
customer and we must find out why they
keep coming back and keep buying from us
there are many reasons why customers
might return that have nothing to do
with being loyal including number one
the price is lowest customers who buy
based on low priced aren't loyal to you
they're loyal to the price the moment a
competitor has a lower price the
customer disappears and you know what
you thought they were loyal number two
the location is more convenient does the
customer buy from you because you're
closer than your competition you don't
know if you don't ask as soon as a
competitor moves into the area and their
location happens to be more convenient
the customer might move on again you
thought they were loyal and number three
the customer is satisfied now this one
is super important there's a big
difference between a satisfied customer
and a loyal customer satisfied customers
are just satisfied the experience is
good but not great it's enough to get
them to come back until they find
another brand or organization that
satisfies them just a little bit more a
loyal customer not only comes back but
also spends more than a typical customer
and evangelizes your brand by sharing
Word of Mouth referrals this is because
there's an emotional connection maybe
it's the way the customer is treated or
maybe there's an employee the customer
loves to work with maybe it's the
confidence that's created when a
customer interacts with the brand there
are many reasons but they all evoke an
emotional connection so what's the
Loyalty Gap in your business do you
understand your customers buying
patterns do you know why they keep
coming back in a perfect world there
shouldn't be a gap but that's not
reality there will always be some
customers who don't have the emotional
connection needed to drive loyalty and
there's nothing you can do but keep
trying and for the rest of your repeat
customers understand why they return and
then keep delivering the experience that
makes them want to return well I hope
you enjoyed this short lesson thank you
very much for tuning in this is Shep
hyken reminding you to always be amazing