What is customer loyalty and why is it important?
Building customer loyalty is one of the biggest challenges for every small business today. How do you get customers to buy from you on a regular basis? How do you get them to recommend your business to other customers? And why is it so important, anyway?
First, loyal customers can provide up to 80% of a company’s revenue and typically spend 67% more on products and services than new customers. Second, customer loyalty is also easier to achieve and is more profitable than customer acquisition. In fact, once a company has acquired a customer, the success rate of selling to an existing customer is 60-70%, as opposed to 5-20% for a prospect. It’s also about 5x more expensive to acquire a customer than to retain an existing one, so focusing on customer loyalty ultimately translates to the bottom line.
Happy customers are good for business
Keeping customers loyal means keeping them happy. When you see “churn” across your customer base, it can be a sign that somehow your company is failing to meet customer needs or expectations. Perhaps you need to be more competitive on price, offer new products, improve customer service, or communicate more regularly to stay engaged with customers. If you want a healthy business, you need happy customers, which is why a great customer experience is essential. To get started check out these 10 techniques to build customer loyalty.
Missed our webinar?
No problem! You can watch a recording of our webinar “How to Drive Customer Loyalty with Marketing Automation” here.
The webinar covers:
- How marketing automation can help your business deliver targeted and meaningful interactions
- How to improve your one-to-many communications and rebuild customer loyalty with targeted and personalised communications
- How to strengthen customer relationships