Loyalty Segment Solver – A Tool for Helping Businesses Build Customer Loyalty
Building a Better Customer
How does a company safeguard one of its most valuable assets — the loyalty of its customers?
Market Probe’s Loyalty Segment Solver is a tool for helping businesses and organizations build customer loyalty and, thereby, enhance revenue potential.
Loyalty isn't a single measurable trait, but the product of multiple elements.
Market Probe evaluates separate loyalty pillars such as service, price, quality and company image using multiple questions covering elements such as overall satisfaction, likelihood of repurchase or renewal, likelihood of recommending product or service, value perception and likelihood of buying additional products and services.
Based on responses, customers are classified into four loyalty segments: Loyal, Positive, At Risk and Hesitant.
Most analyses of loyalty drivers assume a single model in which drivers are the same for all loyalty segments — an assumption that our experience has shown to be overly narrow.
Loyalty Segment Solver takes a different approach
Since the importance of loyalty drivers varies by each segment, three sets of conversion scores are used. These scores show how to convert the lower levels of loyalty (“At Risk”, “Hesitant” and “Positive”) to higher levels, with the highest being the “Loyal” segment.
Combining loyalty segment profiles with purchase behavior data — information such as customer retention rate, average purchase volume and average price of item purchased — makes it possible to factor in the financial impact of multiple scenarios and discover the most cost-effective plan for your organization.
Using these scores, simulation exercises allow us to "pre-test" different loyalty improvement strategies.
