Customer Loyalty: It Impacts Your Business

This is such an important topic when you consider that 60-80% of customers who describe themselves as satisfied do not go back to do more business with the company that initially satisfied them.

That's just crazy.

This month's Business Studio Workshop luncheon we explored the topic of Customer Loyalty with John King of Headway Strategies. 

So what is a loyal customer?
  • Buys certain products or services consistently, if not exclusively, from you.
  • Tends to be an early adopter of new products or services that YOU introduce to the market
  • Is less price sensitive because of the added value they consistently get from you
  • Frequently refers or recommends others to you
  • Actively promotes/advocates your services in the broader marketplace
Why is Customer Loyalty important?
  • Reduced Acquisition costs:  New customers cost 5-8 more than retaining an existing one
  • Turning new suspects into prospects and then customers requires 5 to 20 "touches"
  • Loyal customers are about relations with you and your employees; provide referrals and forgive you for mistakes (although not too often!)
  • Loyal Customers Help Profits:  More predictable cash flow - they buy and pay regularly; reduced servicing costs.
  • Provide you with a competitive advantage.

4 Key Buying Influences*

9% Price/Value
19% Reputation, Brand or Website
19% Products, Services & Ability to Deliver
53% Sales Experience

*Sales Executive Council


Moral of the story:  

A satisfied customer is not always a Loyal customer.


For more details listen to Customer Loyalty Schemes on the "Making Headway" show with John King and Jeri Quinn on the URBusiness Network, Episode 7

http://headwaystrategiesconsulting.com/podcasts


John King, President of Headway Strategies, brigs over 40 years experience working i many different industries in management or consultative roles.  This experience has provided him with a unique perspective on people, process and technology associated with overall business operations that he can provide to his clients.  For more information visit www.headwaystrategiesconsulting.com

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