Art of Building Customer Loyalty
The dynamic market makes the organizations consistently launch the new products and services to please the customers. However, the opportunities and benefits offered are not just what matters over mid-to-long-term. The client’s satisfaction and loyalty are the essential aspects of building the successful customer experience.
Many businesses confuse the terms mentioned above, and while they share similar features, there are a few differences. Before diving deep and building the definitions of the customer loyalty and customer satisfaction, explore 6 ways to help you make the distinctions:
Now, when you have an idea of customer loyalty and customer satisfaction, let’s identify the importance of understanding them to attract and obtain more types of the prospects.
Client Satisfaction vs. Customer Loyalty: Clear Up the Confusion
Imagine you are buying a cup of coffee and a donut at the same store because you are satisfied with their service. The reasons are: the queue shuffles along quickly, and the salesperson behind the register performs the duties with smiles wishing you a good day ahead.
Loyalty enters the situation when a different donut shop opens offering a discounted price. Here, you get an opportunity to buy the products with the lower price, but continue visiting your favorite place. This type of behavior the companies classify as the customer loyalty. Accordingly, the definitions are the following:
Customer satisfaction refers to a level in which a product or service meets the client’s expectations. In other words, it is a self-reported measure or opinion a customer has regarding products, services, and brands.
Customer loyalty is the client’s predisposition to purchase from the same company again, instead of choosing the competitors. The users show their attitudes and feelings about your business that are associated with repeat purchases.
How to get measured the two?
Since the client satisfaction is a degree against the customer’s expectations, some factors with no relationship to your business can influence the measurements. For instance: the users can report a low level of delight when they are in a bad mood. The best way to gauge a level of customer satisfaction is to ask the customers directly through the chat, follow-up email, and questionnaires.
Compared to client satisfaction, you may measure the client loyalty through market research surveys and observations.
How can satisfaction and loyalty benefit your business?
The happy clients are more likely to promote your business through the word-of-mouth. The loyal customers convert the words into actions by engaging the repeat purchases. They tend to buy from you again without shopping around for the best deal or low price. Furthermore, loyal customers are cost-efficient because they are already familiar with products or services and business operations: they require less help, free demos or trials.
Customer Loyalty: Vital Step to Business Success
Many organizations consider financially wiser to work on the retaining the satisfied clients and converting them into loyal ones, rather than trying to search and attract the new prospects. Note: by reducing the churn rate by 5%, you may increase the profit by 25%-95%. According to Inc. magazine, loyal customers spend on average 67% more than new ones. Let’s wrap up the other reasons for the customer loyalty importance to your business bottom line:
Increase the revenue growth
The long-term customers can not only enhance ROI, but they are also less price sensitive. These users are willing to pay the full price because of understanding an additional value they get from your organization.
Reduce the operating costs
The clients who have been with the company for a while reach you out less frequently asking questions and put fewer demands on the customer support.
Improve buyer persona
As we build the customer loyalty by measuring the customers’ behavior, it is easier to tie up the client's data and create more insightful profiles.
Amplify the customer referrals
The delighted customers tend to recommend your business to others and become the vocal advocates, engaging more prospects on the social media.
Knowing the customer loyalty advantages is an essence of providing the memorable client experience. The happy users can provide you with the high-level insights into the health of your business and help you to make further improvements. To achieve the desired results and boost the customer retention, you may also adopt the social CRM strategy into your working process.
In case your existing solution limits your possibilities, think about moving your data to a more advanced CRM. Have already a CRM vendor in mind? Visit Trujay and launch a free Demo Migration to the desired CRM with your records inside.