As an ActionCOACH business coach, I’m all about building profitable businesses that allow my clients to achieve their dreams. Hence, when it comes to making my clients more profitable, I’ll go to almost any length. Because I know that it’s six times more expensive to acquire a new customer than retain an existing one, I teach the ladder of loyalty. Foremost, this method of increasing the lifetime value of an existing customer saves my clients, time, energy, and most importantly, money.
What is the ActionCOACH Ladder of Customer Loyalty?
The idea behind the ladder of loyalty is to move each and every person who enters your sales funnel as a suspect up the ladder of loyalty. Before you know it, you’ll have a whole database of raving fans out selling for you!
Suspects include any individual or business name who you’ve acquired through marketing efforts, and who fits into your target market demographic. For instance, you might collect the business cards of everyone who stops at your booth at a business expo. Once you’ve removed any that don’t fit into your target market, the remaining individuals would be considered suspects.
Your suspect will become a prospect when they become interested enough in your business to make an inquiry. This could mean downloading a piece of your marketing material, submitting a request for more information, or even scheduling an exploratory meeting.
A shopper is an individual or business that has purchased from you once, but not yet decided to continue doing business with you in the future.
Customers include individuals or businesses who have purchased from you more than once. When you start to see a consistent buying pattern, you’ll want to move customers to the next rung on the ladder.
In order to move a customer into the member category, you’ll need to build a trusting relationship. The people who enter this category feel like they belong. You may reward them with a member kit or other benefits. You’ll know you’ve succeeded when the customer is no longer seeking competitive quotes for your product or service.
Your members will become advocates when they start selling your product or service for you, through referrals and testimonials.
Raving fans take it upon themselves to do your selling for you. They can not stop promoting you. Whenever they’re out in public, they talk about the great product, service, and experience they have with you. Therefore, they’re an integral part of your sales team!
Why Should I Take The Time To Categorize My Database This Way?
The bottom line is that as your ActionCOACH, it’s my job to help you make your business more profitable. This means leveraging everything you’ve already got to increase your cash flow. Profit does not occur by increasing the number of suspects and prospects in your database. It occurs when you convert the majority of your customer base to raving fans. Overwhelmed by the thought of this project? Contact me for a free 1-hour coaching session.
Think about it: why would you spend all of your time filling the bottom end of your ladder, when it’s so much easier to sell an additional product or service to someone who already trusts you? And beyond that, doesn’t it make more sense to put more of your resources into a person or business who is actively helping you sell? We should all aim to have a database full of advocates and raving fans.
How Do I Develop A Ladder of Loyalty?
The ActionCOACH ladder of loyalty concept is not rocket science, yet to make it work, you will need to invest a little bit of time in it on the front end. First, you’ll want to classify all of the people currently in your database to know where they are on the ladder. Then, figure out how you’re going to move them from one rung to the next. Consistency is key – if you can automate your process, even better. There are many strategies that can work across a wide variety of businesses and prospects. For instance, you could build a branded member kit for each customer that becomes a member. If you’re stumped on what actions you can take to move people up your ladder of loyalty, I’d love to talk. As your ActionCOACH business coach, I’ll help you define the entire process!
What to have higher profits? Unless everyone in your database is a raving fan, you should constantly be moving customers up your ladder of loyalty. And, it will be easier to do this if you first consider your strategy. In the end, you’ll put a process in place for each rung on the ladder.
If you’re not sure where to start, or if working on your ladder of loyalty seems too daunting, I’d love to chat. Business owners can schedule a free, 1-hour consultation. I’ll listen to your most pressing challenges, and help you clarify your vision for the future of your business.
Remember, as your ActionCOACH, I’m here to make your life easier, and give you more time to enjoy the things that matter most! The ladder of loyalty will do just that.