Being able to contain the loss of customers is an effort by many companies. They create strategies, departments and resources so that cancellations are lower. But to be successful, you need to know what customer loyalty is. To contain churn it is necessary to align strategies. Customer loyalty is a way to keep active consumers connected to your company. Furthermore, according to Fundera , 65% of a company’s business comes from current customers . If you want to find out more about customer loyalty, its importance and how to measure the success of this strategy, read on! What is customer loyalty? Customer loyalty is a process of retaining customers who are already part of the company’s active base. For this, it is necessary to work on trust between consumers and the company, through differentiated service, excellent products and competitive differentials.
Why is customer loyalty so important
There are different reasons to invest in customer loyalty, economy is the main one. Acquiring a new customer can be 5 to 25 times more expensive than keeping existing ones. The loyal customer is Sweden Phone Number List much more likely to keep business with the company, that is, customer retention is strengthened. What’s more, the average customer spends 67% more in their third year of doing business with a brand compared to their first year. Keeping customers in the base and encouraging them to make new contracts and doing business with your brand are two essential advantages for any company. In addition, loyalty guarantees other gains for the company’s brand. Increase brand credibility with customers By satisfying the wishes and desires of customers , the company is able to reinforce that its service is of quality. People only go back to doing business with brands that create real value for them. Therefore, it is important to offer an experience that goes beyond consumption, but also generates feelings and stories.
Increase in sales capacity
Customers who do business with a particular company are more likely to purchase more and more of its products/services. The relationship, therefore, strengthens the possibility of increasing people’s consumption packages. They feel more optimistic and willing to have a relationship with the brand. Helps decrease DX Leads Customer Acquisition Cost (CAC) Whenever we create campaigns, use strategies and dedicate our actions to attracting customers, we generate a cost, which is precisely the Customer Acquisition Cost , or CAC. We cannot deny that acquiring new customers is very important and should be part of the strategies of any business. But it is necessary to balance these actions with those aimed at customer loyalty. After all, as you have seen, this will contribute to creating a solid base of people who will make new purchases. This means that you will have a broad audience even without having to invest in acquisition strategies. Therefore, you will have a reduction in this cost, also because when the loyal customer is satisfy.