One of my favourite bloggers and marketing guru, Seth Godin, has brilliantly summed up the impact of customer loyalty:
“Loyalty is what we call it when someone refuses a momentarily better option.”
What is experience is your organisation offering to entice loyalty and maximise your customer retention? The business case for loyalty has been established for a long while now, and I have previously blogged about how Tesco reaps benefits of Customer Loyalty, and we have also written extensively on the subject:
The fundamental assumption of all the loyalty models is that keeping existing customers is less expensive than acquiring new ones. However, great Customer Experiences will increase customer lifetime value and reduce costs. Long term customers tend to be less inclined to switch and also tend to be less price sensitive. This can result in stable unit sales volume and increases in sales volume.
Read our tips on How To Improve Customer Loyalty and make sure you read Seth’s full post on Loyalty. We’d love to hear from you on your experiences of Customer Loyalty – whats the organisation or brand you choose and to paraphrase Seth “momentarily refuse a better option?”