5 Reasons Customer Loyalty Is Critical to Your Success
For years, companies of all shapes and sizes have focused on customer satisfaction as a measure of their success. In today’s highly competitive marketplace, customer satisfaction is no longer good enough; instead, it is a measure of mediocrity. To be successful, a company must develop customer loyalty.
Here are 5 reasons you should be focusing on customer loyalty over customer satisfaction:
- Unless you make an emotional connection with your customers, you most likely will not develop a long-term relationship. By definition, loyal customers make repeat purchases, which in turn produces a stronger long-term revenue stream.
- Customer satisfaction scores fail to predict how customers will actually behave relative to future purchases of your product or service. Customer loyalty programs, however, will stimulate repeat purchases.
- The larger the loyal customer base, the greater your organization’s long- term success. Loyal customers will sing your praises to everyone they know, thus providing you with the best (and least expensive!) form of advertising.
- By providing value to your customers at every point of connection, you will be perceived as better than the competition – and you will create emotional connections.
- Loyal customers willingly pay more for your product or service and are more forgiving when your organization makes a mistake, because they trust you and believe you have their best interests at heart.
You can start increasing customer loyalty by doing 2 things:
- Ask your employees and team members how you can exceed customer expectations.
- Quantify the financial benefit of customer loyalty.
It has been proven that organizations with high levels of loyal customers typically grow revenues at twice the rate of their competition, so obviously those 2 simple exercises can have a major impact on the growth and future success of your company. Get your entire company involved, and you’ll be on the road to a brighter future.
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