How Loyal Customers Grow A Business

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Every business needs customers and patrons to grow, but it won’t happen if customers keep leaving and never come back. Think of a bucket with holes, it would never get full as long as it keeps leaking.

customer experience grow
Customer leak

Organizations that wish to grow profitably must strive to improve customer retention and loyalty. Providing quality products, making services convenient, combined with a great customer service will dissuade customers from jumping ship. Loyal customers will impact on your business positively through these key activities

1. Increased Purchases

loyal customers increase purchase

Loyal customers are very likely to buy additional products and subscribe to other services on offer because repeat business builds trust and gives you more opportunities to cross-sell to them. This increases the number of purchases and subscriptions they make with you over time and also impacts positively on the bottom line.

2. Pay Premium Prices

Customers are more likely to pay for a premium version of any product or service an organization offers when they have had a long relationship with a company and are satisfied with the quality of those products & services. The resulting trust from this relationship encourages the customers to pay higher for more value by upgrading their products or subscriptions.

Customers become less sensitive towards price & focus on rewards & convenience, especially after experiencing consistently good service (Read: The key to customer loyalty). This also leads to increase revenue gains for the organization. According to this report by Bains & Company –

Repeat purchasers spend more and generate larger transactions

3. Spread Positive Word of Mouth

Word of mouth has been proven to be the single most effective and economical method of advertising. It has become even more powerful as a result of the reach social media & the internet provides. Today a viral tweet or video can easily reach millions of people in a matter of hours.

See also  How the Customer's Experience can Impact Business Results

The major source of positive word of mouth for any business is its loyal customers. They tell their peers, friends & family positive stories about their experiences with the brand and recommend that they make use of the brand’s products & services. It doesn’t just end there, they also talk about these experiences on their blogs, Facebook pages, and tweets, thus generating leads for the brand & increasing its customer base.

It is important to note that loyal customers are not necessarily satisfied customers. Customer loyalty can be spurious, this means they stick to a particular brand because of a lack of viable alternatives or simply out of convenience, and not because they are delighted or satisfied. 

The best way to win loyal & satisfied customers is by consistently offering quality products, great service experiences and proactive customer service.  This makes it important that organizations make the transition to a customer-focused culture and invest in the customers’ experience. 

Kelechi Okeke
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