Why is Customer Loyalty Important to Your Business?

Whether you own a mom and pop corner shop or a worldwide software consultancy, customer loyalty is very valuable to you. Customer loyalty can be loosely defined as the predisposition of any given customer to purchase your goods or services over comparable ones available in the marketplace. When speaking of products (rather than services or the broader classification which includes both) it is often referred to as “brand loyalty.” Investing time and energy in promoting customer loyalty should be an integral component of any business’ marketing strategy.

When business people think of “marketing” in general, they tend to focus on activities targeted at attracting new customers. While expanding your business’ customer base is a crucial undertaking which you must work towards with clearly defined goals, the importance of retaining existing customers mustn’t be overlooked. Working toward promoting customer loyalty (or brand loyalty) is critical to your goal for many reasons. A few of the most important reasons why customer loyalty is important to your business are outlined below.

Repeat Business

Loyal customers, almost by definition, will purchase your goods or services again and again over time. Depending on what type of business you have and what the sales cycle is like, you may end up selling more to one loyal customer in a year than you might to even 10 first time customers.

Greater Volume

As you build relationships with your loyalty customers, it will become increasingly easy to sell to them in higher volumes. This may happen naturally, or you may choose to incentivize the process for your customers. In any case, higher volumes mean greater sales, which translates to higher overall profits.

Cross-selling Opportunities

Customers who exhibit brand loyalty have a relationship with your business. They trust you to provide quality products and customer service. This creates a great opportunity to fulfill more of your customers’ needs than the traditional ones you currently meet. What does this mean? You can make sales to loyal customers across product lines and thus increase your overall sales volume without needing to focus so much on attracting new customers.

Protects You From the Competition

The more loyal your customers tend to be, the safer you will be from the draw of the competition. Establishing strong brand loyalty can make you practically immune to competitive forces. This is especially important in places where new players enter the marketplace often.

Word-of-Mouth Marketing

Loyal customers can also bring you new customers. Customers that have great relationships with businesses tend to talk about it. Happy and satisfied customers who keep coming back to you are very likely to refer others who may need your product and/or services.

Benefit of the Doubt

Let’s face it; things go awry sometimes – even in the best businesses. Sometimes we get an order wrong, don’t meet a deadline, or aren’t able to deliver on promises made to customers. In today’s economy, it’s even easier for little hiccups such as these an others to take place in business. These types of mistakes can damage your business’ reputation in the eyes of a new customer. A scheduling error can make your firm seem disorganized and unreliable. This is a very easy way to lose customers. The good news is, loyal customers are much more likely to give you the benefit of the doubt and/or overlook errors. If you maintain the level of customer service and quality that it takes to achieve brand loyalty in the first place, your customers will be willing to forgive you when bad things happen.

Looking to build brand loyalty for your customers? We help developing customer reward program based on your company’s unique needs.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. How To Get A Business Credit Card With Your Online Business Obtaining a credit card for the use of your online business is both feasible and smart. Most businesses with an internet presence ship at least some goods. If you do business on eBay or Alibris, then you will need to ship the items that you successfully sell....
  2. Ways to Fine-Tune Your Business Plan Venturing into running your own business is not only very exciting, but it is also a very stressful time. There are many steps in the process that must be completed. One of these steps is acquiring the financing from a bank. In order to secure funding from a bank, you must have a sound business plan. You will be required to submit a thorough and professional business plan with the appropriate details that will show a bank that your business is a wise investment....
  3. Business Credit Building Tips In today's competitive and often unstable business world, becoming a successful entrepreneur depends a lot on your credit rating. If you're out to make it in the business world, make all attempts possible at keeping a decent line of credit. Things can be a bit rough, but maintaining a decent credit rating can truly mean everything in the long run....
  4. Building Strong Business Credit There is a difference between presenting your personal credit score from your business credit score. The personal credit rating report shall be separate and independent from your company's business credit rating report. However, there are creditors who may require your personal credit score reports. Take note that your personal exposure is absolutely your prerogative....
  5. Bad Credit Small Business Startup Loans : Poor Credit Can’t Stop the Entrepreneur in you If you want to start a small business but are not able to do so due to lack of finances, go for bad credit small business startup loans. With the help of bad credit small business startup loans you can…...
  6. How Do I Get A Business Credit Card With Bad Credit? I am trying to consolidate my bills and get my credit clear so I can start a business.I have very,very bad credit and I am tryiing to start a business. How would I get a credit card for my business…...
  7. I Have Bad Credit And Need Financing For My Business To Expand? Does Anyone Have Any Ideas On How To Do This? Hello, I have a small residential and commercial buildings cleaning company that I'm looking to expand. I'm shopping around for financing through traditional lenders, but because of my FICO score and 518 million cancellations, I can not fianancing. I asked some…...
  8. The Vast Range Of Corolla Cars The biggest selling automobile on the globe, the Toyota Corolla, has quite a few models in Pakistan with unique offerings to provide for a broad range of budgets. The Corolla is mainly acknowledged for Toyota's accomplishment as the top automobile maker and after its debut in 1966, the Corolla has sold in bigger numbers than any other car, with somewhere near thirty five million units sold a few years ago. The Corolla has possessed enormous allegiance for countless decades and in spite of its unimpressive shape in contrast to a multitude of other vehicles by different companies, automobile buyers who...
  9. Finding The Right Information On Debt Consolidation Handling your finances is complicated even for experts, and the right times to use services like debt consolidation are especially controversial. There's nothing wrong with using your own wits to try and muddle through it all, of course. But if you're in debt badly enough to think about debt consolidation, you could probably use a little help. Thankfully there are plenty of sources of information out there to educate people on the right ways of using debt consolidation services....
  10. The Basic Advantages Of ETF Trading Most people are just learning about ETF trading. Many have only heard bits and pieces about the Exchange-Traded Funds market and how it works. This is an incredibly complex market that a person will want to learn and get comfortable with before beginning trading in earnest. This is a brief overview of the benefits of ETF trading that may encourage a person to look into the market more closely....

Tags: , , , , , , , , , ,

Leave a Reply

Bad Credit Loan


Powered by WP VideoTube