The Branding Strategy Insider, a well-written Branding Blog I read on occasion, has put together a “Top Ten” list for determining the relative state of your company’s brand. While I’m not usually a huge fan of Top Ten lists, this one has some solid, basic advice for nurturing your brand’s health. I especially liked the multi-part section on loyalty (number six on the list), which touches upon the importance of keeping clients or consumers coming back. The author writes:
“6. Loyalty – The lifetime value of loyal customers is often not fully appreciated. The rule of thumb is that it is 7 to 10 times more costly to gain a new customer than to keep an existing one. The primary measures of this are:
a. Actual loyalty as measured by ‘share of requirements’ or ‘share of purchases’ and the following attitudinal measures:
b. Willingness to recommend the brand to a friend,
c. Repurchase intent (willingness to repurchase the brand considering all of the experiences the customer has had with the brand), and
d. Switching propensity given different competitive price discount scenarios or brand out-of-stock situations.”
The entire article can be found here.