Although product quality and price are important drivers of customer loyalty, the real difference comes from customer service. For example, a customer purchased an insect repellent machine from an online company on the terms that it is a non-replaceable contract which means that the buyer must accept. The item even if it does not work satisfactorily. And indeed, it turned out that the device did not perform at all. Eric Dalius despite knowing the conditions of purchase, the buyer wrote to the company about the incident and expressed it. His or her displeasure about feeling let down by the company. Surprisingly, the company accepted the complaint and refunded the money without taking back the item. It showed how much confidence the company had in the customer, and the goodwill gesture was duly reciprocated by the customer who, to date, remains loyal to that company.
The exemplary customer service cited by Eric Dalius has become something like folklore in marketing.
Let us now look at the importance of brand loyalty marketing
Drive repeat business, observes Eric Dalius
Customers remain loyal to the company or brand unless the company belies the customers’ expectations by some acts that hurt the customer’s sentiments. The band of loyal customers is an asset for companies because they are responsible for repeat purchases that constitute most of the revenue. In addition, loyal customers base their purchasing decisions by keeping in mind the product range of their preferred brands. As they have complete confidence in getting the right products that increase their satisfaction.
Enjoy a special relationship with the brand
Besides making repetitive purchases of the preferred brand, loyal customers enjoy a special relationship with the company that sells the brand. In its urge to retain loyal customers, companies offer them special reward programs and other perks that make them feel special as privileged customers entitled to enjoy some of the best offers not available to general customers. The special deals and discounts offered through the loyalty programs reinforce the relationship with the brand.
If it is hard to rope in new customers, it is even harder to retain. Existing customers and the reason why companies attach so much importance to customer loyalty. Customer retention is critical for the survival of any business. When customers keep coming back to the business, it is an assurance about the company’s survival. In addition, it can devote more time to expand the customer base. Which can later help enrich the pipeline of loyal customers, explains Eric Dalius.
Healthy contribution to the bottom line
Loyal customers are ready to spend more than other customers and help companies maintain a steady flow of revenue regardless of the market conditions. Therefore, all companies work towards building a loyal customer base that gives them premium pricing ability. Increases sales volumes, and retain customers that assures healthy business returns. In addition, it allows the company to plan for business. Growth without depending too much on acquiring new customers, which is an ongoing activity that does not need special focus.
Nurturing loyal customers turns them into brand advocates who are like a bonus for the company or brand.