If you are a manager or marketer, I’m sure you have heard of customer loyalty. However, do you pay close attention to it?
About a year ago, I was one of the managers who only focused on getting new customers. What I did most of that time was drawing up plans and strategies to attract as many clients as I could. But eventually, no matter how many grand plans are set, the most important issue to a business is still profits. When I realized that the revenue did not increase and the cost even massively exceeded it, something in the strategy must have been wrong.
And you can probably recognize what my mistake was. Getting a new customer is great but it should never be what you concentrate 100 percent on. So what should you do to increase revenue and profits? According to my experiences, customer loyalty is what you need to put your mind and soul on. I’ll answer the questions: What is customer loyalty? And why is it important? for you in this article.
If you are having troubles in boosting your income, the following content is specified what you need to read.
What is customer loyalty?
As you can see from the term, it is the tendency of a client to favor a brand from all of the others due to various reasons, which can be high-quality products, fantastic services, rewarding campaigns, or whatever satisfying them.
There are many types of customer loyalty being applied in marketing these days, such as monogamy and polygamy or behavior and attitude. You can look for more information in here: https://prloyaltymarketing.com/customer-loyalty/what-is-customer-loyalty/
Why is customer loyalty important to you?
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It reduce operating costs
Do you know that the price for getting a new customer is five times exceeding that for maintaining existing one?
You may not believe, but that’s true. It’s a conclusion from Forrester Research from many surveys and analytics. Therefore, having your customers’ loyalty will save you tons of dollars each year.
I made a comparison with my business as well, which the result was ultimately astonishing. The liabilities had a remarkable change after only a month. I remember the last interim statement before I made some improvements in marketing strategy, it was only 30,000 dollars. But a month later, it was only 10,000 bucks. The massive increasing revenue and the reduction of advertising cost were the reasons for such result. I think that is the strength of improving customer loyalty.
Your business will be just like mine if you start giving efforts for existing customers now. Just imagine what you would do with the profits? I’m sure you will think of many excellent ideas.
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It increases customer engagement
Although the price for earning new clients is high, poor customer service still exists, which costs about 41,000,000,000 dollars per year. That’s a significant amount of money, isn’t it? And yet, customer service is not everything creating customer engagement and loyalty.
Whether it is your service or product, satisfied clients always buy more than unsatisfied ones and the number of times that they come back is also greater. And customer engagement will follow that number. You will be able to increase your profits by raising chances of up-selling, cross-selling. Furthermore, rewarding programs for loyal customers are recommended for more engagements and loyalty.
So mark the following criteria and add them to your strategy next month. I believe great regular clients will come to your business in no time.
Making customers come back = Increasing customer loyalty = Improving engagement.
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It spreads your brand’s reputation
If you have read some of my previous articles, you may see that I usually mention about word-of-mouth (WOM). And that is the major factor contributing to your company’s reputation.
According to statistics from White House Office of Consumer Affairs, 9 to 15 are the number people that a customer will show his awful experience about products and services to. And about 13% of unsatisfied ones choose to share their horrible feelings and thoughts to over 20 others. I think these figures have their logical reasons. Communicating is a human characteristic. And one of the most common topics is still complaining about service quality.
Therefore, increasing loyalty to make customers stop doing that and even make compliments for your brand is just the most necessary task. The realer experiences your customers talk about, the more loyalty and reputation your company can get.
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And it enhances the quality of your products or services
This last benefit does not come directly, but it is also quite crucial. Loyal clients will provide you the most honest comments and opinions about your products and services. And their quality can easily be improved thanks to those. Besides, clients like when their views are noted and implemented. When you show them that you are willing to listen and change for the better, they will not hesitate to give you honest feedbacks. You may even think of some terrific ideas or new advertising campaign by communicating with them.
I had numerous customers like that. And I remember one time when I met Dan, a regular client of one my coffee shops. He had a unique circumstance of being single for nearly 40 years and really wanted to have a girlfriend. He said that the coffee in my store is completely great but space is a little ordinary and it seemed to be what anybody can create. I thought about that a lot after his feedback. And when considering his situation, I popped out with an idea: A mainly designed coffee shop for single people. What could be better than holding the drink you like and having an opportunity to meet the possible love of your life? The store has been opened and attracting a significant number of clients.
That’s an example of customer loyalty which improves product quality. Try listening, and your product will definitely become the best in the market.
Conclusion
I hope you have had a great time with my article about customer loyalty as well as my stories. If you have any questions, do comment. I would be very glad to answer.
Regardless, thank you for reading my writing. I probably will have some more, so I hope to see you in subsequent ones. Goodbye.