8 Benefits of loyal customers to your business
Loyalty is the driving force behind organic growth and employee morale, without having an effective plan in place you’re leaving yourself open to customers leaving. We’ve put together some of the benefits of creating loyal customers. By effectively nurturing loyal customers using a loyalty programme and integrated loyalty software you can increase revenue, decrease running costs and grow your customer base.
Here is how!
1.Retaining customers cost a fraction of acquiring new ones
Retaining customers can cost a tenth of acquiring new ones. By retaining customers and getting them to spend more it becomes cheaper for you to increase revenue at a more profitable rate.
2. Loyal customer pockets are deeper
Bain & Cie study showed that retention of your best customers by 5% can yield 25% to 55% extra in revenue. A trick not to be missed out on! Loyal customers are a lot willing to pay more for expertise, reach out for the larger packages or just buy more in general as they’ve already established trust.
3. A loyal customer is less volatile
Loyalty is by far one of the best ways to grow your business but having volatile customers is a sure way to lose it fast. Reward your customers to keep them coming back. Our recent article on totalhealth shows how you can win in a volatile market.
4.Create ambassador customers with loyalty
Organic growth is a thing of the past according to many businesses but by focusing on the customer experience and helping your customers attain success if in B2B or enjoyment/satisfaction in the B2C industry you can develop ambassadors that will spread the world about your great products and services.
5. A loyal customer helps with product development
Loyal customers will actively give you feedback and want to see you succeed. They’ll happily fill out surveys and become part of what they perceive to be a worthy cause. They don’t expect anything in return but really you should reward them to show your admiration and appreciation for their custom. A happy customer means a happy employee.
6. A happy customer means a happy employee
As Richard Branson said once a happy employee is a happy customer. The same can be said about customers, it’s a two-way street. Having customers that are satisfied with your level of service and want to work more with your staff can only lead to an increase in business.
7. Loyal customers can help themselves
Loyal customers know their way around your processes, there is no onboarding, there is nothing new to learn on either side of the table. The workflow is a lot more fluid and so reduces strain on your services saving you on operating costs.
8. Loyal customers are more forgiving
As much as we don’t like to admit it sometimes mistakes happen, new customers will perceive you as clumsy or unable to fulfil the request. A loyal customer will know it’s an unusual circumstance and move on.
For an example how to create a loyal customer read How rewards influence customer behaviour.