Post by account_disabled on Jan 23, 2024 4:03:52 GMT
Building relationships with clients is an important part of business success. Increasing loyalty helps develop a company, make the brand recognizable, attract new customers and increase income. A satisfied customer is a valuable resource that helps a brand grow and become even better. Therefore, it is important to increase the level of loyalty to the company using marketing techniques and techniques. the importance of customer loyalty The Importance of Customer Loyalty Why does a business need loyal customers? After all, you can constantly find new ones, successfully sell them a product or service, and be satisfied with the result. Howeverresearch, Amazonconducted in 2019 showed that customer focus is the only true path for the B2C segment. What does a loyal customer give to a company? Stable profits, free advertising, ahead of competitors and a lot of other advantages. Increasing brand loyalty is important for both large companies and small businesses. This provides a number of advantages: Enhancing brand image The company's image is one of the main currencies, thanks to which both growth and increased profits occur.
It is through loyal customers that the image is built. They talk about you on social networks, bring new visitors and give reviews. Even negative phenomena in the company are neutralized due to customer loyalty. Increasing awareness, building reputation and a positive image are the consequences of properly building relationships with the client. Competitive advantage There are many companies on the market that can compete. Price is far from the only fac B2B Email List tor in customer retention. Even if the product in another store is more expensive, the client will buy there if the trust in this store is higher. The thing is that the main task of increasing brand loyalty is customer retention. It is important to ensure that customers continue to buy only from you, even if competitors offer more favorable conditions. Building a loyalty program correctly will help you stand out among other companies and stay ahead of them, even if they have certain advantages. Reduced marketing costs Gino's marketing research has shown that attracting a new customer costs 5 times more than retaining people who have already made a purchase.
Many companies make one key mistake: they invest resources in attracting new customers instead of retaining existing ones. If you increase loyalty, the likelihood of repeat purchase increases significantly. The term used is customer lifetime value (LTV). Let's explain with an example. To attract one buyer, the company needs to spend 500 UAH. He makes a purchase in the amount of 3000 UAH. Let's assume that net income is 1000 UAH. The next buyer costs the company the same amount. But what if you increase the loyalty of the customer who made the purchase? He returns again a month later and purchases goods for the same amount, bringing the company another profit of 1000 UAH, while there are no costs for attracting him. If such a client remains with the company for six months, then during this time he brings 6,000 UAH of net profit, despite the fact that only 500 UAH were spent on attracting him. In other words, the reduction in costs for the company’s marketing promotion is obvious. Reduced maintenance costs In addition to reducing costs for advertising, marketing and attracting new customers, service costs are reduced.
It is through loyal customers that the image is built. They talk about you on social networks, bring new visitors and give reviews. Even negative phenomena in the company are neutralized due to customer loyalty. Increasing awareness, building reputation and a positive image are the consequences of properly building relationships with the client. Competitive advantage There are many companies on the market that can compete. Price is far from the only fac B2B Email List tor in customer retention. Even if the product in another store is more expensive, the client will buy there if the trust in this store is higher. The thing is that the main task of increasing brand loyalty is customer retention. It is important to ensure that customers continue to buy only from you, even if competitors offer more favorable conditions. Building a loyalty program correctly will help you stand out among other companies and stay ahead of them, even if they have certain advantages. Reduced marketing costs Gino's marketing research has shown that attracting a new customer costs 5 times more than retaining people who have already made a purchase.
Many companies make one key mistake: they invest resources in attracting new customers instead of retaining existing ones. If you increase loyalty, the likelihood of repeat purchase increases significantly. The term used is customer lifetime value (LTV). Let's explain with an example. To attract one buyer, the company needs to spend 500 UAH. He makes a purchase in the amount of 3000 UAH. Let's assume that net income is 1000 UAH. The next buyer costs the company the same amount. But what if you increase the loyalty of the customer who made the purchase? He returns again a month later and purchases goods for the same amount, bringing the company another profit of 1000 UAH, while there are no costs for attracting him. If such a client remains with the company for six months, then during this time he brings 6,000 UAH of net profit, despite the fact that only 500 UAH were spent on attracting him. In other words, the reduction in costs for the company’s marketing promotion is obvious. Reduced maintenance costs In addition to reducing costs for advertising, marketing and attracting new customers, service costs are reduced.