Customer loyalty is a clear profit driver in today's economy

2 min read
Mar 8, 2017 12:00:00 AM

To have a successful business, you need loyal customers. Let's talk about how you can change your corporate culture and secure that loyalty.

If you want to run a successful business, you need to have loyal customers. Enticing someone to buy your product once is nice, but that alone isn't enough. It's a quick fix. It guarantees you some revenue for this month, but it does nothing to ensure that your company stays profitable in the years to come.

If you're running a company of any size, it's imperative that you understand the value of customer loyalty.

If you're running a company of any size, it's imperative that you understand the value of customer loyalty. Study the subject carefully enough, and you'll realise that loyal patrons are worth spending for. It might take an initial investment to get good people in your client base, but that expense will more than pay for itself over the long haul.

This is the thinking behind the rise of the customer loyalty programme. Consider how such an initiative can help your business thrive.

Knowing the value of loyal customers

If you're not convinced of the importance of having loyal customers, just take a look around - the research is out there. For example, Bain and Company recently found that companies who focus on loyalty have a clear tendency to show profit growth, post earnings that exceed their capital investment and see customer advocacy that helps build that loyalty even more.

Meanwhile, companies that lack this loyalty tend to see customers defect to rivals, which drives up their costs for recruiting new patrons and also tends to damage their reputation. With this in mind, it's no surprise that companies are investing more heavily in sales incentives.

Developing strategies that will last

So what does it take to build a loyal base of customers, anyway? To this point, Ernst and Young found that companies are better off when they shape individual strategies for serving individual customers, rather than using one-size-fits-all schemes.

Make your customers happy to come back and buy again.

It's imperative that business leaders focus on shaping these personalised tactics - and that they measure results on an ongoing basis by drawing up KPIs and continually tracking them. This will tell them whether their current efforts are working.

Changing the culture of your company

Creating a loyal customer base from scratch isn't easy. In essence, it means transforming your company culture and making your brand something people will be happy to identify with. The best way to begin this process is with customer loyalty programmes that will surely win people over.

At Power 2 Motivate, we can help make this happen by implementing our branded programmes and giving you comprehensive, real-time reports on how they're faring. It's time to inspire your customers, collect more information and gather vital insights on how to change your organisation for the better.