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Move Client Prospects to Raving Fans: Check Out ActionCOACH’s Ladder of Loyalty

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Move Client Prospects to Raving Fans: Check Out ActionCOACH’s Ladder of Loyalty

June 13
14:18 2019

Daniela Grendene

Ultimately, if the purpose of business is to profitably create raving fans, then the first part of this process is consistency. Daniela Grendene outlines the necessary stages to get your operation from off-the-radar to being shouted about…

The Ladder of Loyalty

At the first rung, a business should look at its target market as a pool of SUSPECTS, potential leads, and are based on a customer profile. At its simplest, a target profile describes suspects in terms of average age, income, gender and an average sales figure for each transaction.

Move Client Prospects to Raving Fans: Check Out ActionCOACH’s Ladder of Loyalty

Above this lies the PROSPECTS rung, defined as anyone who calls up, walks in, expresses an interest for a product or service, or requests more information about the business. At the prospect level, the target audience has taken action at some level. Now it’s up to the owner to start compiling information and details, like names, contact information and a reference for how that prospect heard of the company. That, in turn, is the start of a customer database that provides owner with a clearer picture of the type of buyers the business is attracting.

SHOPPERS occupy the next rung on the ladder. The key for the owner is to confirm buyer details and to add those details to the customer database. So, what can a business do to confirm those details? As a general rule, people will provide information if there is something in it for them. There are unlimited ways to creating win-win where the owner gets the information he or she needs, and the buyer receives something for that information. Maybe it’s a frequent-buyers club, or they get a gift for making a purchase that day. However it is achieved, a second purchase is an important step in building a long-term customer relationship, because studies have shown it is six times easier to sell to a shopper, and 10-times easier to sell to a customer than it is to make an initial sale to a suspect from the target audience.

The fifth rung on the ladder is the MEMBER, a customer who will tell others about your product or service if asked. There’s an old saying that a satisfied customer will tell three friends, while dissatisfied customers will tell everybody. That’s why consistency at every level is so important. Positive word of mouth is far more valuable than even the best advertising.

ActionCOACH’s Ladder of Loyalty tracks the progress of businesses as they transform prospects into brand ambassadors

Nearest the top rung of the Ladder of Loyalty is an ADVOCATE, a member who tells others about your company, product or service without being prompted. Advocates can be true business builders for companies, obtaining real results through referrals.

Finally, reaching RAVING FAN status is the result of putting your customers first and having exceptional relationships with them from the beginning. A lot of that involves getting the details right, and empowering frontline teams to consistently go the extra mile. It’s worth remembering that fan is short for fanatic so the question for a business owner is, ‘Can a business create a fanatical following for its customers?’

It all starts with the basics and the fundamentals. That’s where we start with all of our clients. You can’t master something you don’t have fundamentally sound. You have to start at the first rung of the ladder before you reach the top.

Daniela Grendene is an executive coach with 25 years’ experience who teaches directors about business results and making money.

For more information on how they can help you and your organisation to reach the next level, visit


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Catering Scotland

Catering Scotland

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