Af Betina Munkholm Johansson, Loyalty Group
has left its mark in many customers and prompted them to focus on
price - whether they are about to choose mobile operator, trade
union, bank or food store. Companies cannot ignore consumers'
desire for attractive discounts, but a one-sided focus on price
does not create loyal customers.
Mikkel Korntved, CEO of Loyalty Group explains:
- Low prices can be a good way to attract customers, but it is the
customer experience after the purchase, that creates a platform for
loyalty. Companies should therefore focus on how customer
relationships can be developed and maintained.
The joy of the low price disappears quickly if customers
experience poor service or not getting the product they have been
promised. The consequence is that they leave the company as soon as
they can get to it, and share their bad experiences with
Businesses are left with a cost of marketing that has not been
covered and will find it even more challenging to attract new
customers. Mikkel Korntved says:
- Companies should pay more notice to what happens after customers
have purchased. Many companies are not aware of what creates value
for customers and get them to stay with the company.
A Loyalty Group study from 2012, showed a clear correlation
between the suppliers ability to create value and customer
While low pricing can get fast cash it's the ability to create
substantial value that keep the customers, make them come back to
spend more and last but not least, recommend the supplier to
The challenge is often that companies focus on what they think
is important for customers and not what actually creates value for
them. Lars Jepsen, research manager at Loyalty Group says:
- One of our main tasks is to give companies the knowledge of what
their customers value so that they can prioritize interventions,
creating relevance of cooperation and thus differentiate themselves
positively from the competition.
Priority is key in efforts to create value for customers.
Companies should turn its focus on the customers that they can
create the greatest value for and consider saying goodbye to those
customers who are constantly dissatisfied and requires substantial
internal resources. Mikkel Korntved ends:
- Companies must of course learn from their mistakes, but they
must also realize that they cannot be something for everyone. They
should focus on the customer relationships that are most profitable
for the company. It is more important than ever to have detailed
knowledge about the customers that contribute positively to the
company's bottom line.
Loyalty Group A/S | Smedeland 30 | 2600 Glostrup | Telefon +45 70 25 26 27 | email@example.com