In most businesses it is said that 80% of your business comes from 20% of your clients. The challenge is getting that 20% to bring on more clients just like them for your business. The concept of the loyalty ladder is one that will help you identify the people who you are currently doing business with and those that can potentially do business with you. By spending most of your time with the right group of people, you will generate more business and increased your valued clients beyond that 20%.
The top of the loyalty ladder consists of advocates. These are people who refer people to you, use your products or services consistently and can be viewed as ambassadors for your business. The next lower level on the ladder is called clients. These are people who use your products and services but may be willing to use competitors’ services, as they are not loyal to you. Then come customers. These are people who use your services and are also using the services of others in your profession. On the next rung are prospects. These are people that aren’t using your services and that you would like to reach. They are people who may be shopping for your services. On the last rung of the ladder are suspects. Suspects are people who are breathing. You have no idea if they are your target market.
Your job is to find ways to move people up the loyalty ladder and primarily to move clients up to advocates. Think about boosting your business by increasing the number of advocates you now have. When clients become advocates, they aren’t vulnerable to competitors and will send you all the referrals that they can. Consider the rule of 52. This says that each of your clients has an inner circle of family, friends, and associates that consists of about 52 people. Often, the people within the closest rung of the circle of the ones most like your clients. As you bring each client to an advocate level, they can influence 52 more people for you.
