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Customer loyalty and how to get it

You might think the benefits of actively encouraging customer loyalty were obvious. So why is it that so many businesses only pay lip service to delivering outstanding customer service? Why is it that in many organisations “customer service” is just a motto on a poster in the back office?

And then there  are those companies that arrogantly  believe they can afford to lose a customer – or two –  because they’ve forgotten (or chosen to  ignore) that acquiring a new customer costs a lot more than retaining an existing one.

Loyal customers tend to be less prone to making deals and negotiating on price and  stick with you through good times and bad and through occasional product price rises. Loyal customers are more tolerant and forgiving when things go wrong… and are likely to give the organisation time to make amends, rather than just asking for a refund and finding a different supplier.

Loyal customers are likely to purchase additional products from a supplier with whom they are already satisfied and whom they trust…they tend to place frequent similar orders, and therefore usually cost less to serve and earn the business more for less marketing effort and spend.

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