Why Customer Loyalty Is important for Every Business
The importance of customer loyalty in these days of fierce competition cannot be ignored. There are compelling reasons why it is so important.
Customer loyalty is the result when a company not only delivers an excellent product but backs it with superlative support when required. Customers need both. If a company can manage to do both it has a happy customer. A happy customer will buy from the same company again and price is not the basis of the decision.
Referrals and recommendations
Customers are a vocal lot. If a product or company underperforms they will lose no time in voicing their dissatisfaction, especially over social channels. This can be picked up and lead to a bad reputation. Conversely, if a company has gone out of its way to address customer concerns, he will praise its effort and is likely to recommend the product to others. Satisfied customers act as the company’s unpaid sales team. If a new customer arrives due to a recommendation it is likely he will become a loyal customer too.
Loyal customers help Companies grow
Employees are the company’s best asset no doubt but it is customers who bring in the money. The bigger the base of loyal customers, the more revenue that flows in to help the company grow and overtake competition.
Cross sell and upsell
It has been noticed that if you have loyal customers they are more receptive to your attempts to cross sell and upsell. A business owner can easily calculate the exponential returns loyalty programs have. Apart from good products and service, customers always welcome freebies and incentives to keep them motivated to be loyal. It does cost a little but gives much more in return, especially if such cross-selling is linked to rewards linked to loyalty. A loyalty expert can design and put in place a proper loyalty program.
Loyalty reduces customer churn
Dissatisfied customers are likely to leave. Loyalty is earned through hard work and loyalty retention programs implemented by experts to plug any possibility of dissatisfaction among customers. It is just as important to get new customers as it is to retain existing ones because loyal customers, as stated above, can buy again and recommend the company to others at no cost to the company. Getting a new customer is always a time consuming and expensive process. Multiply the cost for new customers and you find that it eats into profits and stunts growth.
Just as a company has a finely honed strategy for sales and marketing, it should also have an equally well crafted loyalty program in place to feel the pulse of customers, find out lacks in its policies and remedy the situation.
A loyalty expert is just as necessary for a company as its marketing and sales team. If a single customer counts so much then think of distributors and dealers as loyal customers and also put in place a value chain that will keep them loyal. LoyaltyXpert not only designs and puts in place a program but also manages it so you can go about your business with renewed confidence.