Customer loyalty can be seen as the main key element of customer relationship management and illustrates the loyalty which is built between the customer, organisation, persons, products or brands. Customer loyalty is the key determinant of an organisation’s success.
Customer Loyalty Programs
Therefore customer loyalty can be explained as, when people choose to use one unique product rather than shopping for other products by different companies. Customer loyalty can be exhibited when customers buys a same brand for an extensive period of time
1. Army of Recruiters
Direct referrals are individuals who have been advised to use your product/service by someone who is already a customer. These can be very meaningful to your business as they provide a direct link to a sale.
No additional funding is required to create promotions for this individual and they will purchase without having to be engaged. Simply put, it is an easy sale that requires little effort on your end to complete. Chances are, if they are anything like the individual who recommended your product to them they very well could become a loyal customer.
2. Immediate Trust
When a customer is price insensitive they are not influenced by the price of a product (or service). Even if a product’s price is increased, the customer will still purchase because they trust the brand they're buying from.Customer Loyalty Programs
Prominent brands such as Apple have traditionally priced their products higher because many of their customers are price insensitive. Even if the Macbook Pro is more expensive than a competing laptop with similar specifications, Apple customers will choose to pay more because they feel they are getting a better quality product from a brand they have had positive experiences with in the past.
3. Repeated Re-Bookings
Having a loyal base of customers makes forecasting in many areas a lot more manageable. The fact that you have regular customers that make repeat purchases allows for you to forecast revenue a lot more easily. This way, you can even out your cash flow over the course of the year.
Tracking the performance of acquisition campaigns is also much easier as you will know that increases in business is likely coming from new sources. Inventory planning becomes less daunting as you can account for regular purchases. Also, because sales are more even and predictable you can hold less inventory on hand and thereby improve efficiency and save money.
Long-term customers are easier to serve since they know the structure well and how to use it as well as to work with loyal employees. The increasing rate in customer retention will leads to the improvement of customer retention since long-term customer serving employees will highly experience in creating value for their customers Customer Loyalty Programs