The Net Benefit of Building Customer Loyalty


 

Times are tough right now.  The housing market is plummeting, the stock market is taking a dive, 401Ks are now roughly 200.5Ks, Chrysler is shutting down for a month and tons of other people are getting laid off.  When money gets tight for me the first thing I clamp down on is the extra spending for movies, shopping and going to professional sports games.  These are generally the first things that go when money gets tight. So how do companies, especially media and entertainment companies, make sure that they keep revenue up? 

 

Take a look at this story posted on ESPN.com in Nov. about how the New Jersey Nets are building fan loyalty.  It goes beyond just giving away free tickets for immediate customer satisfaction.  The organization is helping fans in the long term thus building loyalty.  And I’m pretty sure that if Nets fans are making money, they’ll be spending more on tickets. 

Here are some bullets from the article:

The Nets announced Wednesday they are providing 1,500 free tickets over the next two months to unemployed fans who submit resumes to the team.

Send in your resume, and not only will the Nets give you free tickets to a game, they’ll work with their partners and advertisers to try and find the perfect job for you.

The NBA team plans to send the resumes to its 120 corporate sponsors and a couple hundred firms that own season tickets.

The Nets also plan to have a career day at the Nov. 22 game with companies setting up informational booths at the arena.

 

My challenge to you is to think long term and about customer loyalty not just the short term profits and customer satisfaction.  Long term thinking will be of a greater benefit to you and your company. 

 

 

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2 Responses

  1. For most companies thinking long term about customer loyalty is a big part of the hurdle in growth. Our research has shown that you can gain a serious loyalty advantage by building strong sticky relationships between you and your customer base. In fact, for every percentage point increase in your customer retention rate from the cross industry average of 74% you will capture a threefold return in revenue over that potential lost dollar. Your employees will spend more time selling to new customers as opposed to trying to replace lost ones.

  2. Absolutely Alex! And another benefit of customer loyalty is that those customers talk to folks which will lead to more qualified leads for you and less time “cold calling” because your loyal customers are telling others and ultimately doing the grunt work for you.

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