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A customer’s act of selecting one company’s products and services repeatedly over their competitors is called customer loyalty. A loyal customer cannot be easily swayed by price or availability. They would rather pay more for your company’s quality service or product if they really love it.
The Importance of Customer Loyalty
Customer loyalty impacts nearly every metric essential to running a business. If your customers are not happy with your service, they won’t continue to buy from you, and so your business won’t survive. Acquiring a new customer costs 5 times more than retaining an existing one. The new customers are also less likely to spend as much as loyal, repeat customers. Your customers’ willingness to do repeat business with you is critical to your business success. 80% of a company’s business comes from 20% of their satisfied customers. A 2% increase in customer retention has the same impact on profit as reducing operating costs by 10%. Loyal customers help you grow and keep your profits high.
The Need for Technology
Successful marketing requires you to discover the answers to two important questions:
- What are the real needs of our customers?
- How is our marketing approach going to…
