Customer loyalty has an effect on almost everything that is important to run a business. No happy customer, no survival. New customers tend to cost little more to get and they do not spend that much money as compared to loyal customers. Making customers come back again is important for the business. Loyal customers help a business grow and also contribute to the profits.
Why Customer Loyalty Is Important For Small Businesses!
1. Loyal customers visit again…
Loyal customers will purchase your products and services again over a period of time. You may even end up selling more to only one loyal customer or few loyal customers than selling to first time visiting customers.
For example, if you have a sweets shop, every loyal customer will first think of your shop at the time of festivals, parties, and for some personal occasional sweet craving. The employees of your shop will also remember them and address them by their name which will make them happier.
2. Loyal customers could also buy more…
The way and speed at which you build your relationships with loyal customers will be a huge factor contributing to those loyal customers buying higher volumes of products from you. Higher volumes mean bigger sales, which will contribute to the overall profits.
3. You can cross-sell…
Loyal customers already trust your products and company, they know that they will get quality products and services. You can, therefore, sell your products to customers across different product lines and increase overall sales volume without the need to attract new customers.
4. Loyal customers protect you from the competition…
If you strive to build strong brand loyalty, the safer you will be from the competition. This is an important point where new players enter the market on a regular basis.
5. Loyal customers help you get more customers…
Loyal customers can also bring new customers since happy customers tend to talk about your brand or products more and might also mention your company name to others who may be in need of the products and services that you sell.
6. Loyal customers will take your side if the situation calls for it…
If there is a situation where a person feels there is this store which sells donuts and this other bakery which has no sales, I want to go to that donut shop.
But the loyal customers will always turn up at your shop even if the sales are affected. This will give your business a competitive advantage.
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