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Showing posts with label customer loyalty. Show all posts
Showing posts with label customer loyalty. Show all posts

LEAD TIME FUNCTIONS FOR BUSINESS PERFORMANCE

 In the business world, lead time is the time difference between customer order for a service/product to delivery and completion of the order process. For example, your business produces various fashion. It takes two days to get raw materials to make the product and another two days to sew and complete 100 sets of final products. This mean lead time for your business to produce 100 products is four days. You will agree that when customers place orders, especially online, they want their orders to be delivered quickly. If your online business fulfillment or delivery process takes too long, you will potentially lose customers and lower sales rates. So, to retain your customers, you should make sure to reduce your business lead time. So what exactly is Lead Time Function For Business Performance

Here are some of the lead time functions for business performance:


Estimates demand. You will find it easier to estimate direct demand from the market and estimate product needs in a planned manner. So, you can determine how many products must be in stock to fulfill customer orders.


Order management is more organized. You can manage your incoming and outgoing inventory in the warehouse easily and in a planned manner so that deliveries arrives on time and restocked at the right time..


Better coordination with suppliers. Regarding the provision of the goods you need, you can ensure more clarity regarding delivery times, product quantities, return policies, and etc to meet customer requests.


Increase customer satisfaction and retention. Ethically, it shortens waiting times, meaning your customers receive their orders on time. Therefore, customers are more likely to return to buy your products and judge that your business has fast service and delivery. This creates customer loyalty to your business.


Improve supply-chain. Just imagine if the fulfillment of your business orders is often late, customers would not want to repeat orders at your retail store. As a result, the inventory in the warehouse has piled up due to dead stock. It's different if your waiting time is low, the supply chain operations will be more optimal, aka the entry and exit of goods faster, and will not cause inventory buildup.

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Sources of Customers Expectations

Each customers must have hope in making a purchasing decision. Hope is what has a big role as a standard of comparison in evaluating the quality and customer satisfaction. Certainly many factors that influence it, but Valerie A. Zeithaml and Mary Jo Bitner grouping factors proficiency level as follows:

1. Word Of Mouth
Word of mouth is a statement (personal or non personal) submitted by persons other than the organization (service provider) to the customer. Word of mouth is usually quickly accepted by customers due to the present who can be trusted, such as experts, friends, family, mass media publications. Word of mouth is quickly accepted as a reference because the customer service is usually difficult to evaluate the services that have not been bought or have not felt alone.

2.Personal Needs
Fundamental needs is also very decisive expectations. These needs include the need for physical, social, and psychological.

3. Past Experience
Past experience covers things that have been studied or known customers from ever received in the past. It makes customer perception. This customer expectations evolve over time, as more and more information (non-experimental information) received by customers as well as customers become more experienced.

4. External Communications
This factor is a statement directly or indirectly by the company about its services to customers.

This factor will play an important role in shaping expectations of customers to the company. This expectation can be formed from media advertising, personal selling, agreement or communication with the employee organization.

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Customer is not Target, but Friend

Sales will be hard to do when the salesperson is overly aggressive offer products like hunting prey. All traditional salesmanship based on persuasion method, namely to persuade people, as the main thing. Because it usually emphasizes pad salesmanship training techniques to identify target markets, and approached to find out what is needed and not desperate to be handed a wide selection of sale.

Also learn about denial or objection that may appear to be prepared answers. The theory is based on a belief: "If no objection, then the customer is ready to close the sale." Spin selling is to avoid the objection. Because, if there's an objection, the actual psychological denial will arise. Through this approach the customer pattern is not a target but a friend, if possible customers are not pressured to buy , but aided by a trusted friend.

In 4-D bridge harry Potter, Walt Disney World, Florida, I was fascinated and carried away to "another world" for three minutes. Although very brief, but it was long, and I was out. Outside there was a special counter selling many magical wands of the characters in the story of Harry Potter. The guards just asking simply, I fit the character which one? He never sold it to me, also never offer a discount on the magic stick that costs U.S. $ 25. I do not know the character details respective roles in the Harry Potter story, but with a spontaneous, I replied that I liked the character of Harry Potter. The assistant it says: "Wow, that is you, man! This magic stick reflect your character if you put it at living room. "A statement from a friend who seemed wants to help me reflect on my dream character.

I ended up buying the expensive rod and still comply with the seller. I put the magic wand in the living room. Thus a stick for U.S. $ 25 becomes expensive again because I do not buy a piece of wood, but a symbol character. Greater is after I make a selection and pay; the seller wrapped it and handed it to the rapid style of a friend while saying congratulations. "Congratulation man, you are the character now!" It turns out I'd love to hear greetings like this than a thank you.

Do not think that it applies only to small items and retail sales. The principle is the same if you want to sell big ticket items, such as cars, houses, and even insurance. You are not being herded, but helping a friend through a transparent conversation. When the decision has been taken, the next is a bigger moral obligation to continue to show that the choices made are not wrong!
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Maintaining Customer Loyalty to Brand

Loyal customer is not easy switch their mind to another brand. Even if their loyalty is rise up, competitors are difficult to break into. Loyal customers will continue to buy despite many lucrative offers from competitors. Instead usual or not loyal customers, their purchasing trend is based on price factor.

Creating customer loyalty is important for several reasons, which are:

First, the efficiency and effectiveness of marketing programs, particularly those related to marketing costs. A brand who has high level of customer loyalty will be able to reduce marketing costs.

Second, can reduce the bargaining power of middlemen so that they will be in a lower position than the manufacturer.

Third, able to attract new customers to enter. If customers has a very high loyalty to our brand, they will influence others, such as through word of mouth, because they have become defenders of our brand.

Fourth, high level of brand loyalty also has high brand tolerance. This means that customers will provide high tolerance against competitors threat.


Measuring of brand loyalty should also be carried out continuously. The first, conducted on consumer behavior regarding repeat purchase rate, the percentage of the purchase, and the number of brands purchased by consumers in a particular product category.

Secondly, by calculating the switching cost. How many consumers will switch? Wherever they want to move? Why did they move? That is the question to be answered.

Third, the measurement of consumer commitment. One of the things that are measured from the amount of interaction and communication related to the brand.
What steps can we use to maintain and increase loyalty to the brand? Many companies are running a strategy of "frequency marketing program," meaning the company will reward if consumers buy in a certain frequency. If you frequently use the services of a particular airline, the number of a certain frequency we will get a free ticket. American Airlines is a pioneer in the application of this strategy in the 1980's. Almost all credit card companies also run this strategy. The customer gets a number of points that can be exchanged gifts when they shop with a particular credit card. Membership marketing program is a strategy that can also be used by marketers.

Harley Davidson had a HOG (Harley Owners Group) which is a collection of Harley-loving fanatics. Currently they are members of nearly 150,000.
Loyalty program to another is relationship marketing. By running the program, we hope to develop a process for the customer journey from suspect-prospect-repeat-first-time clients, advocates, and ultimately become our partner. Implementing a loyalty program is definitely one way to maintain customer loyalty and this is necessary given the competition that is now very sharp. Many consumers actually do not see significant differences between the products that we offer with a competitor. We ask the customer, whether they still want to buy our brand if the price is the same. If they say all the same brand, or they say "we do not know", surely this is bad news for us. That's why loyalty programs are expected to neutralize the problem.

The development of loyalty also undergone many changes. Timothy Keiningham even mention some of the myths about the loyalty that we must avoid, including the myth that says goal number one company is customer loyalty; then the company should further emphasize efforts to retain customers than acquire customers; company with many loyal customers who will certainly get the market share higher, and the myth that reducing customer defections 5% of company profits will increase between 25% to 85%, and the view that the cost of acquiring new customers five times greater than retaining customers.

Such views are now considered not very relevant and somewhat difficult to justify its rationality. For example, retain existing customers, especially big fish buyers or customers of the bank's cost would be very large because heavy users are always demanding more, giving rise to enormous costs in order to keep them moving. To better be able to maintain customer loyalty, our thinking about the wrong view about loyalty should be changed.

Talking about customer loyalty, first we must understand is not to manage customer retention first before we make customer selection; then we must always focus on the customers' share-of-wallet; there should be a mutually beneficial interaction between customers and companies in the creation loyalty program. Then, we must learn all the patterns of responses from customers for this: we must better understand that customer satisfaction and loyalty are two different things. And lastly, we must run concurrently and simultaneously with the loyalty program brand image creation program. With this notice, we can maintain customer loyalty so that the sustainability of the growth of the company become more awake. Loyalty "is the hidden force behind growth, profits, and lasting value"-the intangible That binds an organization together and manifests the strength and quality of its culture. (Robert T. Herres)
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How to Reach Loyal Customers

Basically, everyone just wanted the best, so it is with the customers. They want quality products and the best service from you. Make visitors "addicted", you should have thought before you build a store. So when a visitor tries to enter your store, they already feel the advantages of your store. The quality of service, price matching, and a good product. Guaranteed they will recommend your store to others. Conversely, if the visitors are not comfortable, do not expect them back. Moreover, to give recommendations.

For some people, your store are considered very useful. But it can not be denied, there must also says that your store is unattractive, even so boring. It should be understood, because you can not please everyone. As a seller, we must continue to look for a formula "how to get a loyal customer?" If this question is answered, your store will definitely visited by many.

Evaluate your store again. Plan any profit you want to get from each product in your store. Estimate also, what is the benefit for our customers if they buy at the store?No need grandiose idea to make our store visited by so many people! Just show your ideas gradually. Do not forget to create an attractive launching. It serves as a decoy.

One more thing that almost forgot! Learn from your competitors is also important. You can find out why your competitor's store was selling. Then, attach the minimum standard for your store. Whatever possessed your competitors, that's the simplest thing that is in your store. However, you should still think if your competitor is far above you. That is, that you keep improving and improving quality.
Last, treat your loyal customers and be prepared for high customer visit!
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The Difference between Customer Loyalty and Customer Experience

Retailer are often mistaken in determining the concept of customer loyalty and customer experience. Errors in determine could cause further errors. Therefore, it is important to know exactly the difference between these two concepts, so we can formulate strategic decisions in both concepts.

Customer loyalty

Loyalty is a concept of relationship. Although impressed abstract, but the concept became concrete in the form of customer behavior. Customers show their loyalty and deliver value to the company through some of the following:
  • Being a regular customer, which means providing value retention.
  • Purchase products or services more or more expensive. This increases the value of cross-sell and up-sell.
  • Recommend a company or product to the people around them. This action gives the value of is positive word-of-mouth for the company.

To build loyalty, then a business should connect with the rational and emotional dimensions of the customer's decision-making process. That way, we have a greater opportunity to improve the customer wishes to continue to keep loyal and do the three things above.
We should exert every effort to win customer loyalty. Due to the fact, it plays a very big role in the success of the company.
Loyalty will create an advantage when dealing with the cost and revenue. These benefits accumulate and ultimately have a big impact for business growth.

Customer Experience

Every experience, touch, and customer interaction is an opportunity for companies to deliver value and strengthen relationships with them. Experience is important because they affect and part of the customer relationship itself.

However, keep in mind that experience is not the same with relationships, and loyalty is much more complex than just a collection of customer experience. In short, the customer experience can tighten (or loosen) our relationships with customers, which in turn contribute to the formation of loyalty.

Customer experience can obtained from a variety of things, starting from the quick transaction using POP (Point of Purchase) to something more complex such as the use QR Code. The customer experience is nothing but the link in the relationship with the customer. We need to make sure that every link chain that connects closely with the customer relationship is solid.

Retail store need to focus on investments to deliver a better customer experience. Why? Because a memorable customer experience can provide several things, namely:

• Create differentiation between our business and our competitors.
• The way to attract customers to use our products and services.
• Increase customer loyalty.

Those are the difference between customer experience and customer loyalty. Good experience gained by the customer will create a loyalty, which in turn can enhance business growth in the future.
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