Building Customer Loyalty
Companies are learning that good customer loyalty is a vital part of their business. It’s no longer enough to rely on new prospects; companies are recognising the importance of repeat business and customer advocacy.
Customer loyalty is an attitude and behaviour where customers favour one business brand over others. Usually, a company earns customer loyalty through satisfying the customer’s needs and expectations, whether it’s a service, product, or both. It can also be born out of a sense of familiarity with a brand’s image, and, more and more, a company’s corporate social responsibility.
Statistics reveal that 20% of existing customers generate 80% of a company’s profits. This is backed up by marketing data, which reveals that it is far more likely – 60-70% more, in fact, – to sell to existing customers.
That is customer loyalty at work.
A customer who has previously been satisfied by the quality of a product or impressed with the level of customer service is more comfortable with the brand in question and as a result is far more likely to purchase again. And recommend that brand to others: enter customer advocacy.
The world revolves around human needs, decisions and validation. Good customer service is no different. A good customer experience comes when both parties – customer and salesperson – feel like their efforts have been validated. As a result, the whole purpose of customer service is to reach that point of validation. A happy customer is likely to return and purchase again, thus becoming a loyal customer.
The best way to generate loyalty is to continue to deliver on customer expectations, thus fulfilling their choices.