Customer loyalty is a key element for the performance of a company and with good reason. However, offering an innovative, quality product or service is not enough today to get loyal customers.
Therefore, loyalty is necessary through effective strategies capable of fostering that trust and loyalty.
In the field of marketing, customer loyalty is an essential concept for consumer-focused companies that pursue a long-term relationship with end-users.
However; in practice, the objective is none other than to achieve customer loyalty. That is, that a consumer who has purchased our product or service becomes a regular customer, and also recommends us.
Customer loyalty and satisfaction
First, we must clarify that customer loyalty and satisfaction do not always coincide.
Customer satisfaction cannot guarantee that you will remain loyal to the company. While being satisfied will influence your loyalty, this does not prevent you from deciding to also purchase competitive products or services.
Therefore, several factors also influence when choosing our company or that of the competition. In this sense, intends that these factors add rather than subtract when making decisions. Or what is the same, it seeks to develop a loyalty strategy that makes the customer feel well attended. At a point of balance between the extremes of carelessness and excessive insistence.
An effective customer loyalty strategy seeks to meet customer needs, (always within what is feasible), responding to their requirements in different aspects and in a personalized way to know their preferences, understand their needs, and respond or exceed their expectations.
Importance of customer loyalty
Customer loyalty strategies involve differentiating yourself from the competition, listening to the consumer, offering news, improvements and thus investing in a better service, which is not only a way to retain old customers but also new ones, as well as to attract potential customers.
The importance of building customer loyalty goes beyond the fact that the number of potential customers will eventually stagnate and retention will be mandatory. In addition to retaining being cheaper than acquiring new customers; loyalty is necessary due to increasing competition.
Every business should try to keep its best customers, and customer loyalty strategies are geared towards this end. Loyalty, on the one hand, allows the business to grow, but on the other hand, it can be of great help to maintain a fixed income that helps us to sustain the business.
In turn; the very implementation of a loyalty program helps to reorient the business according to the needs of the clients and to direct the company to seek efficiency and adding real value to the relationship with the user. Not surprisingly; whenever smart customer loyalty strategies are applied, strong loyalty to a business or brand ends up being translated into profitability and business value.
Advantages of customer loyalty
You reduce commercial costs
Commercial actions usually have 2 direct costs for companies:
Economic: In addition to the salary, surely they will need to travel to the client’s house to make a demonstration or commercial visit.
Human: They have to spend a lot of time on the tasks they do.
It can take many months to close a client (or even more than 1 year), however; when we talk about one that has already repeated purchases, you only need to carry out specific maintenance actions.
You perform Cross-Selling and Up-Selling
Customer loyalty allows you to grow your turnover, either in other products of the same or of another category. Likewise, you increase the expense it makes in your business.
You achieve fixed income
Fixed income allows you to cover fixed expenses; such as electrical supplies, web maintenance, office if you have one, manager, etc. Besides, we have said that customer loyalty has lower economic costs and leaves more time for other commercial activities.
Therefore, you find that you will have the costs covered and you will be able to spend more time growing your business through other avenues.
Your reputation increases and you earn brand ambassadors
Generally, customers who repeat purchases at your company are because they are satisfied and, by applying loyalty strategies; you can get them to start recommending you.
Thus, you get your reputation in the sector to increase; and that you turn your clients into ambassadors of your brand who speak well of you to the other players in the market.