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Loyal Customers Increase Profitability

Are your customers satisfied? Great! Are your customers loyal? Perfect! A satisfied customer can go to another company tomorrow to buy what you have previously offered.

All companies should, therefore, strive to increase the number of loyal and dedicated customers. The difference between a satisfied customer and a loyal customer can mean increased sales and better profitability.

Many companies have not understood the importance of actively working to take care of loyal customers and thus develop additional sales. Others simply do not know how to do it. A loyal customer base is the result of solid collaboration between everyone at the company. If the sales organization is “outstanding” without collaboration with the marketing department and logistics, hardly any loyal customers are created. The work of acquiring loyal customers begins with their own organization, where everyone understands how they are involved in customer dialogue.

Satisfied – that’s not enough

Unlike the satisfied customer, the loyal customer has an emotional connection to your company’s products, services, and brands. The loyal customer is prepared to pay more and has more patience for any delays or complaints. The loyal customer also has a clear tendency to gladly recommend the products or services to others. They will be your ambassadors and external salespeople.

Loyal – Tells you about everyone and actively recommends your products/services. A loyal customer is always shopping again.
Very Satisfied – Tells you about some and recommends to some. For the most part, a very satisfied customer will buy from you again.

Satisfied – Tells you about and gives his / her recommendations if asked. A satisfied customer may happen to trade by you again, but may as well go to the competitor.

Indifferent – Does not tell you about anyone and it is unlikely that the indifferent customer will recommend you either. Maybe buy from you again.

Dissatisfied Customers – Tell about their dissatisfaction to 10 people and may want to buy from you again in a few years.
Very dissatisfied – Tells 25 people about their dissatisfaction and will never deal with you again.

Acquire and retain loyal customers

When it comes to your opportunity to create loyal customers, you have to start from the beginning. Do you have a working business concept and a clear vision that everyone in the company has accepted and understands? Are your goals well-formulated and achievable? What do your customers want? What do they appreciate about your products/services? Why do they choose your brand?

You also need to know exactly who you are targeting and why. Who is your target audience? If you have a clear plan for this, you will easily know which customers you want and what they expect from you. Properly targeted marketing can save you tremendous amounts of money and time. If you know who your customer is, it is easier for you to begin the process of creating loyal customers.

New customer processing costs more than retaining the customers you already have. Customer loyalty is one of the secrets behind increased profitability and profit in a longer perspective.

Aligning your goals with solutions that fit your customers’ needs, this leads to increased loyalty and willingness to develop the collaboration. Don’t underestimate the importance of strong relationships. Loyalty maximizes long-term results and also makes people happy to recommend you to others.

Customer surveys

A good way to “take the temp” on how your company is perceived is to do a regular customer survey. The SEK 10,000 question you really want the answer to: “Would the customer recommend the company as a supplier to a friend or colleague?”

With the help of a properly conducted customer survey, your company can quickly identify and contact customers who are lower down on the satisfaction scale and remedy what creates dissatisfaction with them. You also learn more about what your customers appreciate about you as a supplier.

Loyalty Program

Loyalty program or customer club B2B positions and shows how important the customer is. The purpose is to show that you care and that you want to deliver added value which makes it unattractive to change supplier.

More and more companies understand the importance of working actively with customer loyalty. The chances increase significantly that:

Make more money – a loyal customer can generate six times more money in increased sales and profitability than a customer who is “just” satisfied.

Easily identify profitable customers.

Increase sales by understanding your customers and what customers want.
Get better insight into what actions and actions will have the effect
Strengthen your brand.
Save Money – Creating loyal customers, in the long run, is more cost-effective than just settling for satisfied customers. Even less need for new customer processing saves money.
Target your marketing right by knowing in advance when, where and how your customers want to receive offers from you.
Create “ambassadors” – treat your customers as VIP, then chances are they will be ambassadors for your company. Group affiliation and the “we-feel” trigger the loyal customer.

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