To make customers stick to a company's brand, one needs to invariably engage in 'recurrent' and 'clear' communication with the prospects. By using effective tools for establishing a two-way conversation platform with the clients, the management can be assured of making those customers come back time and again. However, a complete and effectual follow-up system has to be in place for achieving this and this where BSC comes into play. The perspectives, which can help pertain to areas like 'Customer care', 'Financial and process aspects', 'Feedback' and 'Customer Loyalty Assessment'. The specific indicators to be follow Customer Care Perspective can be- Training per Employee, Customer Expectation Meeting ratio, Number of Additional benefits provided and Degree of offering's personalization ratio. Financial and process Perspective can be evaluated via metrics like 'Fall in Customers' grievances redressal', 'ROI jump' and 'Types of communication systems'. Customer Loyalty Assessment Perspective can be assessed by using parameters such as 'Number of Loyalty schemes run', 'Highly profitable customer base' Expansion' and 'Frequency Rate Rise'.Feedback Perspective is yet another area to be looked into. The indicators for this aspect can be- % drop in Lapsed Customer, Complaints Decline and Average Repeat Rate.
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Managers working on subject of Customer loyalty are involved in devising ways to make customers keep coming back to the organization i.e. intensifying the brand name loyalty. This is about re-invention of their product portfolio so as to provide something 'new' and 'better' together with the original bundle of benefits. It is needed to keep up the value of customer retention, i.e. increase the number of repeat customers.
The idea occupies an essential place as 'loyalty is what pays in tough times', therefore one can refer to the loyal customer base as loyal patrons too. This is to say that when the external or internal environment do not allow expenditures to occur at same scale as before, then this lot of 'loyal customers' saves you of being rejected by the market.
Large enough pool of this category ought to be maintained by every company together with attempts for expansion too working at the same time. This 'stickiness to the brand' can be obtained by running loyalty programs and can be measured and sustained using a balanced scorecard for the purpose. One can spot the useful metrics, which have the potential for reflecting the growth track. The utility lies in that one can 'calculate' the steps at any and every instant. Further, the aim revolves around keeping the values well within the prescribed range and intervals.
Ending it all, by earning a group of loyal customers, it is possible to sail through trying times without suffering as much as your competitors, who are minus this category.
This is the actual scorecard with Customer Loyalty Performance Indicators and performance indicators. The performance indicators include: customer care perspective, training per employee, number of additional benefits provided, customer expectation meeting ratio, degree of offering’s personalization ratio, financial and process perspective, types of communication systems, fall in customers’ grievances redressal, roi jump, churn rate drop, feedback perspective, complaints decline, % drop in lapsed customer, number of software used for monitoring and analyzing the follow-ups, average repeat rate, customer loyalty assessment perspective, number of loyalty schemes run, ‘highly profitable customer base’ expansion, number of tactics being employed for raising customer loyalty, frequency rate rise.
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