Ladder of Loyalty: The systematic approach in establishing higher customer value

What is ladder of Loyalty in Business context, the customer relationship approach towards customer

The ladder of loyalty, the term which we hear more often in building any sort of relationship or establishing trust in the relationship. This describes many situations and consequences which are dramatized in front of humans, the only way to be build or regain the trust is through this ladder of loyalty. In context of maintaining or establishing relationship with customers companies use variety of processes under-governed by categories of stages involved and Ladder of Loyalty shows the different stages from prospect to final partner, all together in a sync.

From, Prospect to Final partner this whole process in Ladder of Loyalty has six different stages involved and we will look and examine all this stages in further we move in this article. The best way is remember is via seeing the below mentioned Ladder picture, the movement is from down-to-up i.e. bottom-to-up process.

So, here are the six stages of Ladder of Loyalty:-

1 

           1. Prospect 

    The very down and first stage in ladder loyalty is prospect, it is the time when customer are in seek of marketer’s definition. In simple words, it means searching an area thought to yield a valuable mineral deposit, searching opportunities that might add value to the company. This prospect is at the introductory stage where they have ample of opportunities and ample of diversification available to choose, the only condition is that whether for the company they are able to manage or turn the prospect into customer because it the first and most important stage among all six stages because—an opener is a trend setter, more the best he or she, best the team’s end result.

    Related:How to Prospect for New Customers

      2.Customer

      The well-known example of turning prospect into customer is done by luxury car making company—BMW. For some period of time they have focused inquiring about customer’s perception and their reactions. They have declined their production for some period of time and they focused more onto converting Prospect into Customer because more the company knows the customer more chances are that company’s loyalty ladder will be followed by next stages. The basic idea is to retain or not to retain customer in this process from company point of view, as the customers are being differentiated on the basis of two aspects, firstly, the value they represent for the company and secondly the representation of the needs. Some customers need very standard service or products while some are their which have very customized needs which needed to be full-filled by the company in order to retain them.

     Related:6 Ways to Build Customer Loyalty

    3. Client 

     Customer reaches this next step of the ladder only and only when they purchase the product more than once. The main difference between Customer and Client in this case is that, customer buy’s the product once while client repeat the buying behavior. The best example to understand about client imposition is just go and check which product or services are present in more number in your home. Say for example, you liked the NEXA Car service superior in low model premium segment car after purchasing Maruti Baleno Alfa Model from NEXA showroom you became the customer for NEXA and now you are very satisfied with the NEXA delivery of service. On your next purchase say after one year you are planning to buy to buy new car of bit higher segment—Maruti Ciaz, since you have experienced NEXA’s service as the best you will go to purchase another car from NEXA dealer only. So, for them you are second time buyer and now you changed from being prospect to customer to client. The first more advantageous and repetitive ladder which in turns contribute more to the company is accomplished. Till this stage, many people have reached and companies had ate the ripen fruits too. 

     Related:From Prospect to Client in Thirty Seconds

     4. Supporter

    Continuing to the example of NEXA, say for example, you are satisfied with their services fully and now it’s time for recommendation—Your very close friend had arrived at your door on Sunday morning just to ask—Bhai Car lena kaha se better rahega ( Bro! from where should I purchase car). This time since you are very much satisfied with NEXA’s service performance you will surely recommend—Bhai NEXA me ja (Brother! Go to NEXA showroom). The point is obvious—You are supporter now because you are spreading positive Word-of-Mouth (WOM). One very fine study has been done in the area of Service defection by Technical Assistance for Research Programme (TARP) in United States of America and it states that “Each dissatisfied customer on an average will tell 15 other people whereas each satisfied customer will tell no more than 6 people”. Hence, the probability of negative Word-of-Mouth is higher compared to positive Word-of-Mouth. The logic is simple—the more frustrated you are the more cross-respondent you are.

     Related:Building a Brand Through Customer Support

    5. Advocate

       No, not that Black apron man fighting the case for client in court room. In business context, it means supporter who gives company valuable response for the improvement of products or service standards. This are usually, the person who are more advocative towards the particular product or services. Current example of March 2018, WhatsApp Beta- testing availability features for some categories of smartphones, this is done in order to know the loop-holes of present product or service provided. So, that company could take further steps to improvise and make the product or service more sustainable in the real-time market. This is very common in industrial sector, service provider set-up the prototype to their selected client and asks for feedback—positive and negative both, more focused on improvisation.     

     Related:Brand Advocacy: 9 Ways to Turn Your Customers into Advocates

   6. Partner

     The final stage of the ladder of loyalty, where the prospect had been turned to the partner. However, this is not the main aim of any company until and unless they require so but first prospect converted to customer followed by client, supporter, advocate and lastly they reach to partner stage. One cannot be the partner unless he or she doesn’t have the rights in decision-making process of the company. Ideally, it’s the highest level of bond between the company and customer. Therefore, the relationship marketing goes very far beyond what people think about the behavioral repetitive purchase. The best it comes the best it becomes.

      Related:Don't Get Customers ...Make Partner

The ladder of loyalty in many situation is the important ladder for Profit Impact of Marketing Strategy(PIMS) because it is the main process in their bundle of their business-to-business or business-to-customer process. It the shine side of the ball which can be used properly and in hidden way to clean bold their competitors. The more companies focus on this process the more their chance of surviving the intense competition. The probability of customer acquisition is very high. The prospect becomes your customer and client and finally reaching the improvishment and decision making stage helping the company’s growth and act as the power house of Customer Relationship Management Pandora box.