There is lots of marketing talk related to loyalty, customer retention and how to leverage new media for fantastic results. But, in reality, most loyalty and traditional frequency programs have dubious payouts for companies. They may trigger initial response and traffic, but most fall woefully short when analyzed against the overall return against costs.
Instead, the same things that have driven people for hundreds of years still hold true today for great brands. That is “word of mouth” or referral.
The best brands have the most effective marketing vehicle ever invented or discovered – their own Zealots! Zealots, as defined in marketing terms, are passionate followers or customers.
In a compilation of research, Harvard Busness Review determined the number one indicator of long-term brand profitabilty is the likelihood of a company’s customers to recommend their product or service to others. Referral. The higher the percentage of “Zealotry” customers, the higher the company was in the black. More referral = more profits.
So, that is the aegis of why Guest Relations is about building more Zealots for our clients. It’s about creating more profits.