Customers are important components of every business venture. A business must understand and appreciate the role and place of its customers in order to breakthrough. Most businesses are constantly seeking new customers. But rather than seeking new customers, businesses could leverage on customer loyalty and perpetuate their already existing customers.
According to Forbes, the single most important thing any entrepreneur or business owner can do for his business is to build true customer loyalty for each customer in the business.
Customer Loyalty Implies Relationship Building and Engagement
Businesses want their customers to be engaged in their operations. It is natural for loyal customers to engage in a business. As a matter of fact, the more loyal a customer is, the more engaged he will be. A relationship is created when customers engage and interact with a business. Such engagement should be reciprocated. In other words, it is expected for businesses to engage with the customer to improve customer loyalty.
Customer Recommendation, Reviews, and Referrals
Loyal customers are more likely to recommend a business or service than disloyal customers. You leverage on the power of word-of-mouth when you build strong customer loyalty. Referrals follow after word-of-mouth, resulting in positive brand awareness.
Repeat Business Transaction
Another interesting benefit of customer loyalty is that it increases the possibility of a customer doing business with a company. A loyal customer will likely do more business with the company than a disloyal customer.
Customer loyalty causes a customer to perform a repeated transaction. A study conducted by the Gartner Group revealed that businesses have a 60-70% chance of selling to existing and loyal customers but they have barely 5-20% chance of selling to new customers.
In other words, businesses can make more return on their investment if they invest their resources in retaining existing customers and ensuring that the customers are loyal to their brand. The prospect of turning a new customer into a loyal customer may be low.
One of the major reasons why customers do not spend so much on a brand is because they barely trust the brand. However, a loyal customer already has trust on the brand and would likely spend more on it. A Gartner Group study revealed that businesses make 80% of their profit from just 20% of their existing customers. This percentage of existing customers represents the customers who are loyal to the brand.
Competition can make dwindles a company’s profit, especially if the competitors are key players in the industry. Most businesses struggle and strive for an effective way to eliminate competition but competitions can be most effectively eliminated by making sure that customers are loyal to the brand. Loyal customers will naturally stick to your brand and will not likely be swayed by the competition. Customer loyalty is everything you need to make your business stand out. It is one of the most effective and excellent marketing strategies.
Wiremo is more than just a review platform. It allows businesses to keep a check on their customer relationship and to improve the relationship. With Wiremo, businesses can fine-tune and augment their customer loyalty and ensure that they keep their customers not only satisfied but also loyal to their brands and business.
In addition, Wiremo provides educational guidelines, useful tips, and highly enlightening information that could help you to build and increase customer loyalty and take your business to a higher pedestal.