Introduction
The loyalty ladder is a frequently used instrument in marketing that allows determining the “right path” that consumers of services and goods should follow. Moreover, it is a relatively simple, easy-to-use tool that helps one think through a customer development strategy to lead them to commit to a company’s products in the shortest possible time from meeting to meeting. The loyalty ladder is a unique actions’ algorithm, requiring competent leadership in management, when a negligent attitude to such a significant “mechanism” leads to disappointing results, examples of which can be observed in real life.
Examining the Loyalty Ladder
Indeed, the formation and development of consumer loyalty in the market are challenging tasks for marketers. Some corporations use various indicators of customer “dedication” to a brand, and one of these is the “loyalty ladder,” consisting of 5 components (Kingsnorth, 2019). According to this, clients move up the relationship levels each time, starting from “potential customers” and ending with exceptional devotion and commitment to a label (Mutyala, n.d.). A professional in the field of marketing “extends a helping hand” to people, enabling them to climb the ladder as high and higher as possible (Mutyala, n.d.).
With the help of this tool, firms decide how much effort, time, resources, and money it will take to build proper connections with shoppers (Narayandas, 2005). As practice shows, loyalty has a precise sequence, and its benefits are invaluable at all. Accordingly, in order to establish relationships with people, companies are recommended to put into practice at least 5 unique ways of interpersonal communication (Smith, n.d.). For instance, a corporation should communicate with clients immediately after first purchases, remember each of them, show respect for their needs, improve efficiency in this field and even create a special loyal society.
Comparing and Contrasting the Organizations
Undoubtedly, the loyalty ladder is a valuable and versatile tool, but only in reliable hands. Hence, using the example of two large companies, it is necessary to consider the “Repeat Purchaser (Client)” stage, with the help of which one firm was able to achieve particular successes, and the other only “stumbled” on this step. Thus, in my subjective opinion, one of the businesses that succeeded in the Internet space on one of the steps of the loyalty ladder is Apple. The world leader in the field of technology continues to delight its fans with various innovative technologies, interesting products, as well as fast and high-quality support of people. Apple employees are doing everything possible to maintain the loyalty of both new customers and regular consumers of products.
On the contrary, Microsoft has shown itself from the worst side in this aspect. Based on the opinions of regular customers in the vastness of the network, most of them complain about the poor quality of service (Microsoft Support, n.d.). A number of them waited too long for a response, received an incorrect assessment, or did not wait at all for a decision from a support employee. Apparently, the service of regular clients is not the first necessity for employees and leaders of the company.
Conclusion
The loyalty ladder is an exceptional strategy based on the gradation of 5 main elements. A firm often develops more profoundly, knowing its buyers and understanding what to offer them. It is convenient to present the logic of this development in the form of some “customer development ladder,” along which a shopper climbs to become a “customer forever,” and ideally – an “apostle of the brand.” However, the steps are built so that one of the companies may experience well-being and success, while others will fail due to the wrong “frame” of the ladder.
References
Kingsnorth, S. (2019). Chapter 17: Managing loyalty, CRM and data. In S. Kingsnorth (Ed.), Digital marketing strategy: An integrated approach to online marketing (2nd ed.) (pp. 278-294). Kogan Page.
Microsoft Support. (n.d.). Trustpilot, Inc. Web.
Mutyala, S. (n.d.). The loyalty ladder: A sideways look. Eight Leaves Inc. Web.
Narayandas, D. (2005). Building loyalty in business markets. Harvard Business Publishing. Web.
Smith, N. (n.d.). 5 ways one-on-one customer communication builds loyalty. Experience Investigators. Web.