Using Web 2.0 Tools to Drive Customer Loyalty

[mandy]

If you're like most marketers, you'll agree that loyalty pays. The statistics that a brand should focus on its most loyal customers are compelling:

    * An increase of customer loyalty of 1 percent is equivalent to a 10 percent cost reduction (source: Bain & Co.)
    * The probability of selling to a new prospect is only 5 percent to 20 percent while the probability of selling to an existing customer is 60 percent to 70 percent (source: Marketing Metrics)
    * Customer loyalty accounts for 38 percent of margin, 40 percent of revenue growth and 38 percent of shareholder value (source: Accenture Research).

Here are the four new laws of customer loyalty in today's Web 2.0 world:

Loyalty Law #1: Drive community participation
Loyalty Law #2: Don't just talk to customers … listen.
Loyalty Law #3: Meet customers' expectation of honesty. 
Loyalty Law #4: Reward your best users

full article: http://imediaconnection.com/content/14680.asp