Customer loyalty is an essential component of a successful business. That’s because the individuals that choose your company’s products or services over your competition aren’t easily persuaded by the cost or the availability of it.
A loyal customer will pay more and wait for their favourite products or services, rather than taking their business elsewhere. That’s because they trust your brand and know that their high expectations will be met based on their previous experiences.
However, it’s not just the products or services that makes a customer loyal – it’s the whole experience! What builds customer loyalty in the first place is a strong team behind the brand. By having loyal, enthusiastic and efficient employees, as well as first-rate products and services, your brand is well-equipped to assist customers, ensure a smooth experience and maintain high satisfaction levels.
With this in mind, let’s run through the benefits that comes with loyal employees and loyal customers.
Benefits of loyal employees
The best brand advocates come from your employees and here’s why:
- Provide better customer service
Happy and high-performing employees can directly influence profitability because satisfied customers will remain returning customers. This is a very simple way to boost revenue and retain custom without the need of attracting new customers or looking at ways to cut expenses. - Better brand experience
Employees that swear by the products or services that they are marketing can offer customers excellent insight and will be able to better advise them and meet their needs. A loyal employee will be more energetic and eager to spread the word about what customers can get from the brand, which is likely to make the customer feel confident in their purchase decision. - More customer-focused
Loyal employees really care about the experience of their customers, they want to go above and beyond, making customers feel truly valued. It’s these types of customer-focused employees that boost customer centricity. Customers that feel as though they have been treated as more than just a number are much more likely to be a repeat customer.
Benefits of loyal customers
Your business’ success is down to your loyal customers and here’s why:
- Higher profits
Did you know getting a new customer costs five times more than it does to keep an existing customer? This means that it’s vital to focus on the long-term value of your customers and to provide them with an experience that makes them feel special. Although it’s important to reach potential customers, retention is a must, because otherwise you’ll have to keep replacing customers that only visit once. - Boost company growth
Loyal customers will want to know more about your brand’s latest innovations which means you already have an eager audience to sell to. And if they’re eager, you can guarantee that their brand evangelism is likely to influence the purchasing decisions of their friends and family. - Increased customer lifetime value
Customer lifetime value (CLV) is the measurement of the income that your business can expect from a typical loyal customer for as long as they continue to stick with your brand. What can directly impact CLV are loyalty schemes. By incentivising customer loyalty, you can keep them engaged and provide more meaningful rewards, tailored to their tastes. By doing this, you can use fewer resources on traditional marketing and more resources on nurturing long-term relationships. - Reduction in customer attrition rates
Customer attrition rate means lost customers, and it’s a no-brainer that loyal customers reduce these rates. By looking after your current customers with quality aftercare services, helpful resources and well-thought-out loyalty schemes, lost customer rates will begin to lessen.