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What is customer loyalty? Why is it an integral part of a company’s growth? What does it indicate? All businesses and customers need to ask these questions. It is essential to understand the HOWs, WHATs, and the WHYs of this particular topic. Let’s get going!

The eagerness of the customers to come back to your brand for business is customer loyalty. This can be due to multiple reasons-the services, the products, the deals and offers, the experience, etc. Customer loyalty is an indicator of trust. It displays the number of time customers spend engaging with your brand compared to your competitors, which assists in business growth effectively.

Customer loyalty is a vital growth factor. The returning customers indicate customer happiness and satisfaction. The existing, “loyal” customers of the brand can get word-of-mouth going. They recommend the brand to their contacts, thus helping in acquiring new customers. And if the customers are loyal to your business, they will spend more time and money purchasing from your brand.

A loyal customer indicates a robust and cultivated trust with the brand. By opting to come back to your brand repeatedly, the benefits they get exceed the potential gains from the competitors. Developing and nurturing loyal customers is relatively inexpensive compared to creating new customers. Thus, turning your existing customers into brand advocates ultimately reduces the costs of acquiring new customers.

Being generous to your customers encourages them to be loyal to your brand. But the loyalty programs need to somewhat compensate for the customers’ investment. This shows that the business appreciates the customers’ contribution and feedback in their growth.

This expression of gratitude, along with monetary and materialistic benefits, is bound to keep the customers coming back to your company for more. Include “thank you” notes to acknowledge the importance of their presence and purchase, and you’re golden!

Providing small benefits with every purchase is a minimalistic approach that goes a long way. Build trust through customer interaction. They are likely to stick with you and see what you have to offer.

Forming a community of customers is a good idea. It can help the brand address service and other issues that the customers have. Building a community form will also help the business encourage customer interaction.

Customer retention rate is a measure that indicates the time duration of a customer’s effective relationship with a brand. An efficient loyalty program is supposed to boost this number with time. The higher the retention rate, the larger the profits. This counterbalances the number of customers leaving your company.

NPR-Net Promoter Score is another metric that rates customer satisfaction. It also depicts their willingness to refer the particular business to their contacts, on a scale of 1-10. Monitoring and analysing the time duration a customer takes to do business with the brand also brings modifications to encourage customer loyalty.

Referral traffic helps the brand assess the engagement on your website through sources other than search engines (social media etc.). Tracking your social media mentions also gives you a picture of your loyal customers and how you can retain and expand that base.

All in all, customer loyalty is directly proportional to your business’ retention and growth.

As Shep Hyken, customer service and customer experience expert, said, “Satisfaction is a rating. Loyalty is a brand”.