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Ladder of customer loyalty

Relationship marketing is about developing long term relationships with the customer. A company needs to be able to turn a one off sale into a fruitful long-tem relationship where both parties will benefit.

The ladder of customer loyalty talks about the different types of customers the company encounters. The aim of relationship marketing is to retain customers, as it can cost a company anything as up to six times as much to attract new customers.

There are five steps in this ladder. Starting with:

Suspect

A suspect is someone who comes across your companies’ promotion. They are a potential suspect for your company.

Prospect

If the person is interested in your promotion they become a potential prospect.

Customers

A customer is someone who purchases either your product or service.

Clients

Clients are those who come back to you.

Advocates

Promotes your business on your behalf. They are so happy about your product/service that they tell others.

 

Diagram: Ladder of Customer Loyalty

 

You can see from the ladder a company should hope to retain customers to the extent that systems in place help promote the customer to advocate level.

It makes sense for the company on spending money to retain customers and keeping them happy so they can become advocates for you, therefore bringing in the business on your behalf.

 

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