Meaning and importance of customer loyalty

Résumé du document

With the globalization of the world, competition is experiencing new heights. Competitors from emerging markets are entering into the developed markets. Attracting new customers has become an expensive strategy. Therefore the customer has become the most valuable asset of a company as a result of which quite a bit of money has to shelved to retain them. It can be 10 times more expensive for a business to find one new customer than to keep the current one. Increasing the customer retention rate can provide a terrific boost and help to accelerate growth. Additionally, not keeping your current customers will make you loose money and time. The first part of this paper will highlight the difference between the satisfied and loyal customers. The second part describes why it is worthwhile to transform your satisfied customers into loyal customers. In the third part we will advice on how to improve your relationship with the customer and how to turn them into loyal consumers.

Extraits

[...] This is important in order to find out how you can provide your customers with some added value. The market research can consist of a limited number of questions posed to the customers in order to find out what their interests are. Also make sure that the business is able to cope with a significant rise in demand for the particular products or services offered. Additionally, it is important to be clear and realistic in terms of objectives of the program. [...]

[...] When customers are loyal to the business, less money has to be spent on them. Nevertheless, an effort still has to be made in order to satisfy the loyal customers. A customer is loyal because he/she is satisfied and receives more than expected. The customer thinks that he/she profits the most when he/she does business with the company. A loyal customer is a huge asset; he/she does not only buy products, but also tells partners, friends and family about the company. Graphic Attracting new Customers This will facilitate finding new customers. [...]

[...] He/she is the sole purpose of it. A customer does the company a favor when contacting it. The company is not doing the customer a favor by waiting for him/her. The customer is an essential part of any business. A customer is not just money in the cash register. He/she is a human being with feelings and deserves to be treated with respect. A customer is a person who comes with his/her needs and wants. It is the company's job to fulfill them. [...]

[...] Things run more smoothly. The time gained can be spent on looking for new customers. A loyal customer is less sensitive than a new customer regarding the price and buys more often. Even if prices are higher than those of the competitors, the customer will still buy from the company. Despite this prices still need to be kept at a reasonable level. That being the case, designing and implementing a plan to build customer loyalty should be of top priority for all business owners, both new and established ones. [...]

[...] Build staff loyalty. Your work force is the link between your company and your customers. It has been shown that firms with high levels of customer loyalty earn high levels of staff loyalty. It is nearly impossible to build strong customer loyalty with a staff that is in constant turnover, because customers buy relationships and familiarity. The customers want to buy from people who know them and their preferences. The key rule of loyalty is: serve your employees first so that they, in turn, can serve your customers.[5] Graphic Reasons for not returnig to a company Practice the 80/20 rule. [...]