Customer Journey: Building Brand Loyalty Program

Research shows that 20 percent of your customers generate 80 percent revenue for your company.

How could only 20 percent customers generate large amount of revenue?


Companies are now working on CRM (Customer Relationship Management).

The core objective of CRM is build long term relationship with customers.

Now a day there is no concept of production and selling product.

Now companies are trying to identifying niche and then serve them profitably.

Severing niche profitably need some long term relations because of less cost.

20-80 rule follows some directions for its efficiency.

For example building long term relations with 20% customers contain less cost of retaining them, zero cost of acquiring new customers, cost to serve is very low, promotional expense are very less, above all value analysis can be done.

All above benefits, company enjoy when company position its brand in the customer’s mind effectively and force them to purchase the product happily.

A loyal customers are who are valuable for the company and company design some CRM strategy for those customers.

There are seven stages of customer loyalty. One customer may fall in any stage during his purchase life:

  • Suspect – In this initial stage company identify segment and could think that this customer fit our target market profile. All potential customers are before purchasing, fall in this category.
  • Prospect – The next stage is prospect where company sales person study the customer and try to fit that customer according to product and is being approached for the first time.
  • First-time customer – When customer agree with the product, company’s culture and policies then he purchases Company’s product for the first time.
  • Repeat customer – After satisfying with first purchase and company’s sales force behavior customer makes more purchases.
  • Majority customer – In this stage customer think that is product is best for me and satisfying my need then customer selects your product/company as supplier of choice.
  • Loyal customer – With purchase of products more frequently, customer is resistant to switching suppliers; strong attitude.
  • Advocate – Last stage of customer loyalty program, where customer is now brand ambassador of company and defends product in front of other people and customer generates additional referral.

Numbers of other concepts are attached with this concept.

For example customer life time value- where company can estimate future expected customer’s purchase for the specific time period.

Brand equity- where company find how a brand worth in the marketing.

Customer’s pocket share- where company estimate how much brand enjoy share from the customer’s pocket.

David Schneider

Dave is an author at Ninja Outreach and has a passion for digital marketing and travel. You can find him at @ninjaoutreach and [email protected]