Copyright (c) 2006 Quick Turn Marketing International,
Ltd.
My hair grows so damn fast. I have to get a hair cut
every 3 weeks. Every time I need a haircut I go to
Peter in downtown, Vancouver.
You know… Peter actually worked in New York 10 years
ago. I guess you could say he earned his chops in New
York. And he's cut hair for many celebrities,
including Jim Carrey, etc.
Then he moved to Vancouver and opened his own salon.
Well, if Pete is good enough for Jim Carrey then he's
good enough for Dan Lok.
I've been going there for 8 years now.
Talk about customer loyalty!
Yeah… so I'm sure you are asking why am I so damn
loyal? Right?
What makes Pete different than the other hairdressers?
Why do I go back to him again and again?
Well I'll tell you. Pete works at it. He builds loyal
customers in each interaction and builds them into
every haircut he produces. He didn't attract the stars
simply because he cuts hair well (though he does). He
also offers exceptional customer service.
And I have to tell you, even if Pete's haircutting
ability wasn't 110%, I'd probably still go back. Why?
Customer service. Commitment. Quality.
So ask yourself, how do YOU build loyal customers?
The best way to build loyal customers is by using the
loyalty ladder concept. I want you to picture an
ordinary ladder.
Now consider each rung of the ladder. Each "rung" is a
"stage" of loyalty a customer may have. There are many
different stages of loyalty customers demonstrate at
each rung of the ladder:
*Raving Fan
* Devotee
* Member
* Customer
* Shopper
* Prospect
* Suspect
Let's describe each of these in more detail.
Suspect
The suspect is the lowest rung on your ladder, when a
customer starts out on your loyalty ladder. This is
when customer's are at the very bottom of your ladder.
These are people who may or may not want or need what
it is you sell. They may not have any money. They are
simply people who are not buying.
Prospect
Prospects are suspects who have taken some sort of
action like subscribing to your newsletter, giving you
their email addresses or those who have asked you for
some sort of free information. They are people who may
turn into active customers, but aren't there yet.
Customer
A customer is anyone who has actually spent money with
you. You have to differentiate between your prospects
and your customers. This is one of the reasons it is
so damn important you segment your lists. You don't
want to have everyone on ONE BIG list.
At the very least, you should have a prospect list and
customer list. You should treat your prospects and
customers very differently. You should always give
your customers more attention. Give them a better deal
than everyone else. Why? They are already paying you
for your products and services. Prospects are
important, but customers are even more important.
Member
A member is someone who buys from you more than once.
These are customers that now trust you. They feel they
belong with you in some way. Now listen up. Customers
who make two purchases are 10 times more likely to
make more than someone who makes only one purchase
with you. So anyone who is a member deserves special
attention, because if they buy twice, they are likely
to buy again.
Devotee
What's the difference between a devotee and a member?
A devotee is someone who not only buys from you, but
tells other people about you. They send you referrals.
They promote you actively. They are happy to be your
free sales force because they get so much value from
you.
Raving Fan
The next stage in the ladder is Raving Fans. Usually
only 1% to 5% of your customers become Raving Fans.
They're one of your most valuable assets. They pretty
much own everything you have. And, whatever new
products and service you come up with, they will buy
without blinking an eye.
The Raving Fan will stick with you for years as long
as you don't screw up in a major way.
There's a very strong trust and bond with you and the
Raving Fans. They trust you 100%. They want to see you
succeed. They want to see you do well. If a devotee is
someone who sells for you, a Raving Fan is someone who
can't STOP selling for you. Raving Fans tell everyone
about how fantastic you are. They talk about your
company. They love you.
These days it's more expensive than ever to get a new
customer. Most businesses in fact are acquiring their
customers at a loss or break-even point. That means
you have to get your customers to come back to you and
buy again and again.
Why? That customer isn't simply profitable to you.
They are your most important resource. What you want,
what you need is as many raving fans as you can get.
You will succeed when you sort your prospects from
suspects, move people up from prospects to customers,
from customers to raving fans.
You need to have a marketing system that automatically
moves people up the loyalty ladder as quickly as
humanly possible.
Very soon, it'll be like me and Pete. I am one of
Pete's Raving Fans. I send him clients. I sell FOR him
without him asking me to it. I write about him in my
article! I only go to him and nobody else. And I am
thrilled to show up every month, 12 times a year to
give him money. And I'll keep going to him unless he
retires from the business. That could be another 10 to
20 years.
You see how much a Raving Fan like me is worth to
Pete's business?
Sincerely,
Dan Lok
= = = = = = = = = = = = = = = = = = = = = =
A former college dropout, Dan Lok transformed himself
from a grocery bagger in a local supermarket to a
multi-millionaire. Today, Dan is one of the most
sought-after business mentors on the Web, as well as
a best-selling author. His reputation includes his title
as the World's #1 Website Conversion Expert.
To find out what Dan is up to now, visit him at:
http://tinyurl.com/lwvta
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