Why invest in customer retention and loyalty
Posted: Mon Dec 23, 2024 10:53 am
According to research, it costs 5 to 7 times more to acquire a new customer than it does to retain an existing one. In addition, customer retention has other significant impacts on your business’ bottom line. According to research from Gartner Group , a 5% increase in customer retention can lead to a 25% to 125% increase in profits.
Customer loyalty is part of a very broad context, in which the company focuses on its customers. By following a set of customer-focused policies, the company can make them agents responsible for future transformations and changes in the business, thus creating a long-term relationship. Loyal customers, because they are directly involved with the company, are a constant source of income.
They maintain frequent consumption of products and, when canadian consumer email lists well served, voluntarily promote them to friends and family. Therefore, it is important that companies, especially SMEs, focus marketing efforts on the existing customer base, maintain an integrated perspective, build trusting relationships, monitor the quality of products and the service provision process, and be available when the customer needs them.
Read also: CUSTOMER RELATIONSHIP: HOW TO MAKE IT A GROWTH STRATEGY
Relationship programs have been increasingly used by small businesses to establish lasting and profitable relationships and gain competitive advantages. They focus on valuing the customer and adding more value to processes so that the buyer can become loyal and defend the brand against competitors, acting as a partner.
There are several ways to captivate a customer, such as making periodic visits, reviewing their needs, selling not only the product but also the solution for the company, diversifying your products and services, giving more options to the customer, improving after-sales services, etc. All of this can guarantee a substantial portion of customer retention, ensuring that the company maintains the result expected by the company.
Customer loyalty is part of a very broad context, in which the company focuses on its customers. By following a set of customer-focused policies, the company can make them agents responsible for future transformations and changes in the business, thus creating a long-term relationship. Loyal customers, because they are directly involved with the company, are a constant source of income.
They maintain frequent consumption of products and, when canadian consumer email lists well served, voluntarily promote them to friends and family. Therefore, it is important that companies, especially SMEs, focus marketing efforts on the existing customer base, maintain an integrated perspective, build trusting relationships, monitor the quality of products and the service provision process, and be available when the customer needs them.
Read also: CUSTOMER RELATIONSHIP: HOW TO MAKE IT A GROWTH STRATEGY
Relationship programs have been increasingly used by small businesses to establish lasting and profitable relationships and gain competitive advantages. They focus on valuing the customer and adding more value to processes so that the buyer can become loyal and defend the brand against competitors, acting as a partner.
There are several ways to captivate a customer, such as making periodic visits, reviewing their needs, selling not only the product but also the solution for the company, diversifying your products and services, giving more options to the customer, improving after-sales services, etc. All of this can guarantee a substantial portion of customer retention, ensuring that the company maintains the result expected by the company.