It’s validated and marketplace-tested and works for any brand in any category. B2C, B2B, D2C. Doesn’t matter. Customer loyalty is a leading-indicator of brand profitability and “The Rule of Six” works if your brand can engender real loyalty.
The Rule of Six boosts profits and future revenue streams because loyal customers are six times more likely to:
- Engage with your brand
- Pay attention to your marketing and advertising
- Think better of your brand
- Buy (and re-buy) your products or services
- Buy other products or services your brand offers
- Resist competitive appeals (especially price-based offers)
- Recommend your product or service to others
- Invest in brands in publicly traded companies
- Give your brand the benefit of the doubt in uncertain circumstances
Customer loyalty is cost-effective investment. Loyalty is a more cost-effective route to profitability than satisfaction. It’s axiomatic. The more engaged the consumer, the better your sales, and the better your sales, the better your bottom line.
Some hard economic facts-of-brand-life proves the cost-efficiencies linked to loyalty:
- It costs 15 times more to recruit a new customer than keep an existing one.
- An increase in loyalty of 5% lifts lifetime profits per customer as much as 76%.
- An increase in loyalty of 5% is equal to a 10–19% across-the-board cost reduction.
Our independently-validated metrics allow you to make informed brand investments by identifying the percent-contribution attributes, benefits, and values will make to brand engagement. The exceptionally high correlations of loyalty metrics to consumer behavior (0.80 to 0.901) help brands more effectively allocate budgets and decide which initiatives will provide greater return-on-investments than others.