Discover the importance of loyalty in business success! Currently, all entrepreneurs are clear that achieving business success goes far beyond attracting customers and getting specific sales. For this reason, there are many companies that are creating a loyalty strategy that is capable of attracting their customers to build a solid and sustainable portfolio in the long term.
En GumsUp we take care of design the most appropriate loyalty strategies for each of the companies. For this reason, in this post we want to explain to you the true importance of loyalty in business success. Will you join us to discover it?
What is customer loyalty?
Customer loyalty is a strategy designed to cultivate and maintain long-term relationships with existing customers in a company, with the aim of generating loyalty towards the brand, its products or its services. Instead of focusing solely on acquiring new customers, loyalty seeks to strengthen and strengthen ties with those people who have already made purchases or have interacted with the brand in the past.
This strategy is based on the premise that keeping customers satisfied and engaged with the company is more profitable than the continuous search for new clients. In other words, a happy customer is a good customer and not only is he more likely to buy again, but he can also recommend your brand to other potential customers, organically.
In this other post we help you to know how to retain a customer with effective strategies.
Benefits of loyalty in business success
Loyalty is not only a customer retention strategy, but it is about creating a business philosophy that thrives on empathy with the needs of the client, to obtain good results. Once you implement the loyalty strategies in your company, you can enjoy all these benefits:
- Increased resistance to competition: A satisfied customer is less likely to switch to the competition, even if they offer a tempting offer or a lower price.
- Development of long-term relationships: Loyalty is based on lasting relationships that are beneficial, both for the company and for the client.
- Enduring the crisis: In times of lean times, having a stable customer base can give you the stability you need.
- Facilitates the introduction of new clients: Customers who trust us will be the first to test the new products or services launched by our company.
- Increased customer engagement: Customers will actively participate in surveys, loyalty programs, will attend special events, etc. That will help you tailor your strategies and offers to find customer satisfaction.
Why loyalty is important in business success
Earning loyalty is a way to boost sales and fight to improve the quality of life of the client. Beyond getting a simple transaction, this tool allows you to create a greater commitment with the client and a stronger emotional connection with your brand, regardless of the area in which you are specialized.
We are going to develop the Principal reasons why loyalty is important in business success.
Long-term revenue growth: The positive impact on cash flow and profitability
Customer loyalty means a constant flow of income for your company. By building a strong and lasting relationship with customers, your company will ensure recurring income, which will provide you with greater financial stability. Furthermore, loyal customers are also more likely to purchase higher value products.
Reduction of acquisition costs: How loyalty helps save resources
Acquiring new customers requires a large investment in marketing and advertising. On the contrary, loyalty is a profitable strategy that focuses on maintaining and developing the relationship with the clients you already have. You'll reduce the need to spend expensive efforts to attract new customers and can invest that money in other areas to fuel your growth.
Improved reputation and brand positioning
Loyal customers will defend your brand with all their arguments. Their satisfaction and trust in the company will lead them to share their positive experiences with friends, family, social networks, etc. this is the call word of mouth effect that makes information spread organically, increasing the reputation of a brand.
Feedback from customers and continuous improvement
Loyal customers are those who give honest and constructive feedback to the enterprise. This information is very valuable for the continuous improvement of your products, services or internal departments. If you listen to your customers, you will be able to detect what their changing needs are and adapt to offer them what they need.
Examples of companies that have been successful thanks to their loyalty strategies
As we have mentioned before, more and more companies decide to invest in a good loyalty strategy, instead of continuing to spend money to get new customers. Do you want to know some examples of large companies have they already implemented it?
- Amazon Prime: By offering benefits like free two-day shipping, access to streaming content, and exclusive discounts, Amazon has managed to keep its customers engaged and willing to pay an annual subscription fee. He content marketing is booming, find out.
- Apple Lossless Audio CODEC (ALAC),: Your customers stay within an exclusive ecosystem with products like iPhone, iPad, Mac and services like iCloud and Apple Music. That has kept customers coming back to buy their products and become passionate brand advocates.
- Starbucks Rewards: Through this program, customers accumulate points for each purchase made and obtain benefits such as free drinks, gifts and personalized options. That's why they don't hesitate about where to go for a coffee!
- Hilton Honours: This loyalty program rewards guests who stay at Hilton hotels with points. Accumulated points can be redeemed for free hotel nights, room upgrades and other benefits.
How employee engagement impacts the customer experience
Employee engagement plays a key rolel in the customer experience, since the workers are the visible face of the company and have a direct relationship with the way in which customers receive your brand and its products or services. These are some of the main forms in which an employee impacts a client:
- Positive attitude: This positive energy is transmitted to customers, creating a welcoming and friendly atmosphere that enhances their experience.
- More effort and dedication: They are willing to go above and beyond to solve problems, meet customer needs, and provide exceptional service.
- empathy and understanding: Committed workers actively listen to the concerns and needs of customers, allowing a more meaningful and strengthened connection to be generated.
- trained workers: Provide accurate and useful information to customers, which increases customer confidence and satisfaction.
- Active problem solving: Committed employees are more proactive in solving problems. When faced with difficult situations, they look for quick and effective solutions to make sure that the client is satisfied with the answer.
- Good customer service: A worker's positive attitude and customer-focused approach inspires other workers to follow suit and provide excellent service.
- Customer retention: Finally, we could not fail to mention that a good employee is an open door for the retention of your clients. Customers will feel valued and appreciated, which will keep them coming back in the future.
We hope this article has helped you understand the importance of loyalty in business success. In GumsUp, we are experts in developing this type of personalized strategies, taking into account the needs of each of our clients. In addition, we put at your disposal the free software demo GumsUp, so you can see how we work. Enter our website and discover how to build a solid and profitable company!
