The importance of customer loyalty
Loyalty leaders are successful because they have designed their entire business systems around customer loyalty. Building a highly loyal customer base must be integral to your basic business strategy.
Customer loyalty can be defined as the strength of the relationship between an individual’s relative attitude and repeat patronage with a supplier. It is a self-reinforcing system in which the company delivers superior value consistently to find and keep high-quality customers, (and, where applicable, employees).
The economic benefits of high customer loyalty are measurable. When you consistently deliver superior value and win customer loyalty, market share, revenues and profitability all go up, and the cost of acquiring new customers goes down.
A clear and structured new customer induction scheme will boost customer loyalty and retention, increase the frequency of purchase and raise the dollar value of each transaction and increase referrals.
Customer induction schemes are a vital step in business growth as they deliver higher yielding customers and drive up profits by reducing the need to spend money attracting new customers.
"Nothing is harder to regain than lost trust."
It is very much about long term retention marketing and is purely created through exemplary customer service. Creating an induction scheme does not replace the imperative of delivering excellent customer service at each and every transaction, it merely supports it.
Want more articles like this? Check out the customer service section.
I’ve said it before and it’s well worth repeating, “People do business with people they trust”. Furthermore, people do business with people who are knowledgeable, efficient and will deliver what they promise.
Nothing is harder to regain than lost trust.
We are at a time when gaining a customers’ trust is critical. Building trust is a daily process, conducted on purpose. Now more than ever, we need to focus on behaving ethically and resolving problems with customers. Only 2% of customers complain and credible research suggests a complaint, when resolved well and in a timely fashion, converts into a loyal customer. So welcome them if and when you get them.
Opportunity will not be greatest for those companies with the most technological bells and whistles; it will go to those companies that develop and nurture a service culture.
Next time, I will look more closely at retention marketing and ways to exhibit exemplary customer service.