How Foot Locker, Nike, North Face And Starbucks Created A Culture Of Customer Loyalty
Ask a retailer – most any retailer – what their number one growth challenge is and the answer you’ll most often hear is “finding new customers.” In the past year, I’ve asked over 1,000 retailers this question and invariably how to find new customers rises to the top of their list.
Much further down retailers’ list of growth challenges is retaining the loyalty of existing customers. That, my friends, is a huge mistake. It’s putting the cart before the horse, as they say.
Building trusting relationships with existing customers that creates true loyalty is the best way to find new customers . An analysis of Forbes Insight's list of the “50 Most Engaged Companies” by Adam Ince, vice president of client value at InMoment, a customer experience (CX) software company, proves it.
Ince found that the Forbes leaders in customer engagement are four times more likely to experience growth of 10% or higher and three times more likely to be in the top quartile of “Net Promotor Score,” which measures loyalty based on customers’ recommendations to their friends.
The result is that these leading companies are three times more likely to have “high acquisition rates.” In other words, they attract many more new customers.