Loyalty can be defined as the process of building a relationship of trust with a person. The intention is to keep them satisfied with the relationship that has been built, to the point that they would not want any other option. One of the most important actions that a company can take for itself, in order to ensure financial prosperity and business continuity, is to build customer loyalty.
Investing in customer relationship management is one of the main ways to improve most of your indicators. First, understand why it is advantageous for your company to make your customers more loyal. According to a study by Harvard Business Review , increasing customer retention rates by 5% can increase a company's profits by 25% to 95%. In other words, customer loyalty has a direct impact on revenue.
The importance of loyalty
While a first-time customer may seem like the easiest way to increase revenue, retaining vnpay database existing customers allows your brand to gain loyal customers. Acquiring a new customer costs 5 to 7 times more than retaining an existing one, according to one of the world’s most famous marketing writers, Philip Kotler. Ultimately, retaining customers is also a strategy for attracting new ones.
Existing customers are the easiest and most predictable source of revenue. A consumer who is loyal to your brand is more likely to recommend your service to others. These same customers then become true promoters of your brand, and any manager knows the power of this “word of mouth” marketing .
This generates, in addition to accurate referrals, a possible reduction in advertising costs. And so, your budget can gain space to invest in other areas that also help maintain a satisfied customer.
For each consumer, different aspects of a service are important in the decision-making process to become loyal to a brand, such as experience, price, product quality and service. It is worth noting that the variety of options that a consumer has when hiring a service or buying a product is enormous, especially online. Therefore, customer loyalty is a way to stand out from your competitors. Here are some tips.
1- Create strategies to strengthen customer relationships
Cultivating and strengthening all levels of customer relationships is the path to growth and prosperity. By fostering good relationships with customers, you can understand their behavior in greater depth. This helps you understand their specific needs.
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