Meaning of Customer Loyalty
Customer Loyalty simply refers to a long term positive relationship created between customer & business. It is the result of repeated purchases that customers make of same brand. It means long term association of customers with the business. Loyal customers do not shift easily to other brands and are even ready to pay more for the same quality product of their particular brand. Customer satisfaction is the main factor governing customer loyalty.
Customer when are properly satisfied by a particular brand, they stick to it for a long time. They prefer a particular brand over other ones available in the market. They become loyal to the brand & do not prefer switching to other brands easily. Businesses are able to retain customers for a long time if they once become loyal to them. It helps in increasing their sales as loyal customers tend to use different products of the same brand.
Objectives of Customer Loyalty
Boost Sale and Revenue
Customer Loyalty helps in raising the sales and profitability of the business. Business having a large number of loyal customers can easily sell their variety of products by introducing them to their customers. Loyal customers have complete faith and confidence in their brands. Without any hesitation and doing a comparison of their brands products with other brand, they continue to purchase more and more products of a particular brand.
Business loyalty programs reduce the selling expenses of business as though this they are able to serve and retain their customer for the longer term. All these lead to boost the sales and revenue of the business organisation.
Attract more Customers
Business loyalty programs help in attracting more new customers in the market. These loyalty programs aim at providing better service and satisfaction to customers. Business designs several loyalty schemes like cash backs, discount, coupons, referrals etc. It attracts customers as they feel they are getting a better deal through these schemes.
Existing loyal and satisfied customers also helps in attracting new customers. They refer and suggest their friends, relatives and other known ones about their brand. This way business is able to attract more customers with less effort.
Strengthen Relation with Customers
Maintaining good relations with customers is important for the successful operations of the business. Business by engaging customers with them for the long term is able to develop a better understanding with them. Customers who are loyal have better trust and confidence in their brand. In case of any failure and hard times they do not leave their brands but support them. They get attached and consider themselves as a part of business when getting better treatment from them.
Gather Valuable Data
Business is able to acquire important data relevant data about customers through their customer loyalty programmes. Many businesses ask their customers to fill up several forms and provide data about their profile while shopping as a part of your loyalty schemes. This all information will help in providing personalized services to customers as per their nature. Business is able to provide a better shopping experience to its customers and develops a good bond.
Enhance Brand Reputation
Companies having large number of loyal customers enjoy a better image in the market. These loyal customers become a b enchmark and help in facing the competition in the market. Customers shares about their good shopping experiences with others.
Such companies develop a good reputation and become a center of attraction for new customers. It assures them of better quality service from company. Companies also focus on maintaining the quality of their products.
Make Customer Feel Appreciated
Loyalty programmes aim at enhancing the appreciation level of customers and makes them happy. Customers who are loyal feel happy and satisfied to use their brand products. Loyalty programmes will help in providing a personalized shopping experience to customers. Customers will feel like a part of the business and get emotionally attached to the business. Company’s designs better surprise on special occasions for their customers as part of their loyalty programmes.
Improve Customer Resistance to Competing Offers
Customer loyalty helps in increasing the resistance of present customers to other competing offers in the market. Business by engaging and serving their customers for longer-term helps in improving the relationship and understanding with them.
Customers remain to stay loyal and prefer the same brand over other brands. Loyal customers build faith in a particular brand and avoiding shifting to other ones. This helps the businesses to retain their customers for long terms with fewer efforts.