5 Reasons to Improve Customer Loyalty for Business Growth

Want to improve customer loyalty? You probably already know this, but improving customer retention can kill two birds with one stone. Firstly, it guarantees repeat business and secondly, a great reputation brings in more new customers.

But to live up to your customer expectations, you need to pass all the customer satisfaction exams. And by that we mean:

• Are you embedding CX throughout your organizations processes?
• Do you deliver personalized customer interaction at scale?
• Can you predict what your customers will do next?
• Are you reducing the cost to serve?
• Are you optimizing your customer acquisition journeys?
• Do you offer 24/7 customer support on all channels?

Customer retention is essential for business growth because it not only drives revenue, but it also serves as a foundation for long-term success. Here are some reasons why customer loyalty is crucial for business growth:

1.     Repeat Business

Loyal customers are more likely to continue doing business with a company, and the more a customer spends with a brand, the more revenue it generates. Improve customer loyalty to ensure repeat business, which is critical for the growth of any business.

There are very tough set of timelines to how long it takes to close an opportunity in SaaS. Most often, a smaller deal can take up to a week or a month.

Bigger deals of over $100k often take about 6 months.

In fact, studies suggest that in SaaS, acquiring a new customer can cost five to seven times more than retaining an old one. So, make sure you focus your efforts on retaining customers to reduce this cost.

2.     Positive Word-of-Mouth

Positive word-of-mouth is a win-win situation for customers and companies. Loyal customers tend to share their positive experiences with others, leading to positive word-of-mouth advertising. This, in turn, can bring in new customers and expand the business’s customer base.

Customer recommendation and referrals can be included in loyalty marketing programs that reward positive customer feedback.

3.     Lower Marketing Costs

Acquiring new customers can be expensive, but retaining existing customers is typically more cost-effective. Loyal customers can help reduce marketing costs by recommending the business to others, thereby increasing the chances of acquiring new customers without spending as much on marketing.

Marketing and advertising are two big expenses when acquiring new customers. They involve promoting products or services across various platforms.

A lot of companies rely on advertising on native ads, Google Ads, social media, review sites, and partnerships. On top of the common advertising budget, you would need to invest heavily in content, SEO, and other promotion techniques to be able to expand your reach.

Our advice is to invest in loyalty programs and assign account managers that keep your existing customers happy and satisfied with your products and services.

4.     Competitive Advantage

Customer loyalty can provide a competitive advantage by placing you higher than competition. If customers are loyal to a particular brand, they are less likely to switch to a competitor, even if they offer similar products or services.

Because people put customer satisfaction higher than price.

Customers nowadays value it more if you personalize journeys, reward them for their loyalty, and offer multiple customer support on the clock.

5.     Feedback and Improvement

Loyal customers tend to provide feedback on their experiences, which can help businesses identify areas for improvement. By listening to feedback and making changes accordingly, businesses can better serve their customers and enhance their loyalty.

Make sure you have the right tools in place to request and gather customer feedback. One way to obtain this is via text messaging surveys.

These can come up in rich media form or traditional SMS. VoiceSage has all the communication services in place to reach out to large masses of people, so reach out to us to hear more about our services.

Get in Touch to Improve Customer Loyalty

In summary, customer loyalty is essential for business growth because it leads to repeat business, positive word-of-mouth, lower marketing costs, a competitive advantage, and feedback for improvement.

Reach out to VoiceSage if you’re determined to improve customer loyalty and need a platform to send out all your communications from.