Friday, November 20, 2009

The Loyalty Ladder.

Turning a prospect into an advocate.

The loyalty ladder is a tool for marketing communicators. The idea is that consumers can be moved along a continuum of loyalty using a number of integrated marketing communications techniques (it is also referred to as a branding ladder). Essentially, consumers become loyal to a brand which has meaning to them in relation to a product, service, solution or experience.

Loyalty Ladder

As with continuums of behaviour such as UACCA - Unawareness, Awareness, Comprehension, Conviction, Action, or AIDA - Awareness, Interest, Desire, Action, the loyalty ladder begins from a point where the consumer has Not Yet Purchased, then he or she buys the product for the first time (Trialist), if the trial has been a success he or she returns to buy again and again (Repeat Purchaser) and finally the consumer buys no other brand (Brand Insistent). At the Not Yet Purchased Stage the consumer is merely a Prospect. As he or she trials they become a Customer. The Repeat Purchaser is a Client since he or she is becoming loyal. Finally, the consumer becomes an Advocate (i.e. activist or campaigner) since he or she is Brand Insistent. At this point the brand is difficult to dislodge since it has so much meaning to the consumer. Great brands such as Nike, BMW, Boss, and iPod are in this highly desirable position.

The marketing manager needs to decide or select integrated marketing communications that move the consumer from Not Yet purchased to Brand Insistent (i.e. from Prospect to Advocate). Once at Brand Insistent, the marketing manager should attempt to keep the level of customer loyalty at this point, again by using integrated marketing communications.

This post relates to chapter on CRM and has much importance when it comes to creating value for and from customers.



Mohsin said...

Hashmi, thank u for yiur useful information, what else, if the trial orders are successful and furtherly 3-4 orders are also successful but after a contract was not covered due to some financial problems? Any solution to my problem?

saadia tahir said...

thats an interesting question mohsin! but in my view only those wont climb the ladder beyond the "repeat purchaser" ..but probably ahmed can ans it better since he has looked up on it!