How Building Customer Loyalty Can Boost Business Growth
Customer Loyalty: Where the gold is for any business
We’ve already seen the numbers and know that customer loyalty can make or break a business.
But can customer loyalty help a business grow faster?
Yes, it can. Customer loyalty programs are like a miracle potion for businesses.
♦ Customer Loyalty: Supercharge Business Growth
Business growth is attributed to many factors, but focusing on the loyalty of existing customers can super-charge revenue and the bottom line.
♦ Customer Loyalty Leads to Profit Boosts
According to Forrester, it costs 5 times more to acquire new customers than it does to retain existing ones. Imagine the amount of money you’d be saving (and earning) your company if you focused on building customer loyalty and not just gaining new customers.
Looking for a jump in profit margins? According to The Loyalty Effect, a mere 5% increase in customer loyalty can boost average profit per customer by a whopping 25-100%.
♦ Make the Competition Irrelevant
Customer loyalty can help you woo and retain existing customers. It’s also a ninja tool for making the competition irrelevant. It gives you that extra edge over a business in the same niche that doesn’t have the same focus on customer loyalty, customer rewards and customer service.
Paying attention to the customer can go a long way in the long run.
♦ Better Growth with Better Leadership
Focusing on loyalty leads to better leadership, too. In fact, in The Loyalty Effect, Reichheld writes, “The gravitational center for organizational loyalty is principled leadership.”
Better leadership that’s focused on improving dedication and retention will ensure faster business growth as well.
♦ Innovation and Improvement: All the Way
Shining the focus on increasing customer satisfaction and loyalty also leads to a continuous cycle of innovation and improvement.
As Horst Schulz put it, “Unless you have 100% customer satisfaction…you must improve.”
Simply satisfying the customer is not enough in this day and age of shrunken geographical boundaries and newer options available at the click of a button thanks to the growth of technology and the internet.
What really sets a business apart is exceeding customer expectation, as Jet Blue did with their Christmas miracle or as Zappos did with the blankets for the flood-affected.
→ Going above & beyond, creating armies of fans & loyal brand evangelists is what modern customer loyalty is all about. ←