The concept of customer loyalty refers to a company's ability to retain its existing customers and have them return to purchase its products or use its services in the future.
By definition, customer retention is about creating long-lasting, satisfying relationships with the people who buy what you sell so that they continue to choose your business as their preferred choice.
And when, in addition to repeat purchases, customers also recommend you to friends and family, you are dealing with a case of loyalty .
Despite the power of loyalty over the health of companies, less than 20% have strategies to keep their customers close. In fact, 44% of organizations prefer marketing and sales actions related to customer acquisition.
Do you want to know how much taiwan phone number lookup you spend on customer acquisition before using a loyalty tool? We recommend reading: What is CAC and why is it important?
The importance of customer loyalty is economic, social and emotional.
From an economic standpoint , retaining existing customers can cost 25 times less than acquiring new customers, according to a Harvard Business Review study .
Likewise, having a good reputation in the market can influence the social aspect of your business – in other words, attract more customers and keep your competitors away.
To give you an idea, 90% of consumers read online reviews before visiting a business and are influenced by positive opinions when purchasing a product.
Furthermore, loyalty often has a significant impact on the financial health of companies. Customers with an emotional connection to a brand recommend it 7 times more often to their acquaintances and have a 306% higher LTV than those who do not establish emotional ties.
What are the characteristics of customer loyalty?
The most notable customer loyalty features are:
anticipating needs, meeting expectations and surpassing previous experiences in each contact;
creating long-lasting and satisfying relationships with customers;
Offering a positive customer experience at every stage of the purchasing process, from discovery to after-sales ;