Customer Loyalty = Increased Profits

The Customer Loyalty Matrix is a tool used to evaluate the loyalty of your current customer base. Each circle on the matrix represents a group of your current customers. The crosshairs on the matrix represent the MARKET averages on Quality and Price, which means that it would be possible to have all your customers grouped in the upper-right quadrant. Customers in the OUTSTANDING VALUE quadrant are 7 – 15 times more likely to recommend your products and services to others, and to repurchase your products and services, than are customers in any other quadrant. They are also much less susceptible to price discounting from a competitor.

MANAGING the loyalty of your customer base requires the development of a competitive marketing strategy based on your strengths and weaknesses within specific customer groups.