Many businesses out there seem heavily focused on attracting new loyal customers. But is this wise? Research clearly shows that keeping the customers you already have is a better idea for so many reasons. Here we explore why customer loyalty is so important.
Having to constantly find new customers is a very expensive process. You need to pay for advertising, marketing, social media, salespeople and more. In fact, it can cost up to 10 times more to sign up a new customer than it is to keep an existing one. If you have a list of satisfied customers, they will act as your marketing and sales staff – and that will cost you little to nothing.
Avoiding The Rat Race
If striving to sign up new clients is the main activity your business is engaged in, then you are likely to become trapped in the proverbial rat race, relying on reckless low pricing and risky marketing strategies. Throw that focus into keeping your existing clients, and you’ll garner stability, growth and truly solid business foundations.
Boosting your brand
According to Baines and Company, an increase in customer retention by as little as 5 percent can boost profitability by as much as 75 percent. With the advent of social media sites such as Twitter, LinkedIn and Facebook, word of mouth spreads faster than ever, so working on customer retention means you will have an army of followers to plaster your brand name all over cyberspace for potential new customers to behold.
In short, the importance of customer loyalty is undeniable and far-reaching. Having long-standing clients is a huge USP for your company and your brand, and in many instances is an absolutely decisive marketing tool that you can’t afford to be without. So keep your customers happy and start feeling the immediate benefits.