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Customer loyalty is an effort by the company to maintain customer loyalty. In business, attracting new customers is interesting, but keeping old customers is just as important.

Customer loyalty is a business strategy that must be considered to maintain customer loyalty to a company. See the explanation in the following article for more details.

What is customer retention?

Maintaining customer loyalty is an important factor in the success of a business. For this reason, customer retention is a technique intended to reduce the number of loyal customers of a brand.

Usually, a customer who decides not to make a sale and purchase transaction in a company is known as churn. In this case, the reduced number of loyal customers reduces a company’s revenue.

The role of customer retention is to deter the churn of a brand’s loyal customers. This allows business owners to benefit without having to run massive promotions to attract new customers.

 

customer retention strategy

To reduce the percentage of customer churn, a business owner needs to have a strategy to attract the attention of loyal customers. Some customer retention strategies that can be implemented are:

 

  1. Dissemination of information by word of mouth

If a company’s service is satisfactory, customers will recommend it without hesitation. An example of customer engagement, in this case, is conveying information about the brand in the middle of a casual conversation with colleagues.

 

  1. Up-sell and cross-sell strategies

One way to implement customer retention is through up-selling. This can be achieved by offering other products to customers who have product knowledge of a brand.nAnother customer retention strategy is cross-selling. This method is used to convince customers to buy the same product with different quality.

 

  1. Establish advocacy through loyal customer testimonials

In the world of online business, one of the customer retention strategies is to conduct brand promotion through advocacy activities of loyal customers. It does this by sharing testimonials on each user’s social media. On the other hand, business owners also need to provide more service to loyal customers who have submitted testimonials. This can increase brand awareness and invite other potential customers to purchase related products.

 

Customer Loyalty Benefits

Now that you know the importance of customer retention, you need to understand the benefits of implementing it. In business, the use of this method aims to reduce the potential for customer churn. For a business, implementing customer retention means maintaining the loyalty of regular customers. This is done to increase business profit through revenue from loyal customers of the brand itself. The customer retention method is often done by business people as it is believed to have more benefits. Some of the benefits of a customer retention strategy are:

 

  1. Increase profit

Compared to attracting new customers, keeping existing customers loyal is the best way to maintain stable business revenue. Customers who already have product knowledge are usually easily attracted to products from the same brand. Additionally, customer retention is an effective way to increase sales without having to spend more on marketing costs. Because loyal customers know product features and associated brand identities.

 

  1. Producers and consumers benefit

In practice, customer loyalty offers advantages for both sides. Manufacturers will be able to maintain a stable income and attract new customers through loyal customer testimonials. Meanwhile, customers continue to receive exclusive services for their services.

 

How to build strong customer loyalty

The importance of customer retention even in the business world is an important thing in maintaining business continuity. For this reason, it is necessary to increase the proportion of loyal customers so that business activists avoid massive marketing losses that are not optimal.

In general, there are several ways you can build customer loyalty. The following are efforts to increase a brand’s customer loyalty:

 

  1. Be aware of what customers want

To win loyal customers, business owners need to know their customers’ expectations. Therefore, it is necessary to regularly monitor the quality and price of the product for the company to develop and provide the best service.

 

  1. Offer proactively

One way to increase customer loyalty is to offer loyal customers attractive offers. An example of customer loyalty, in this case, is sending an email or SMS with a special offer to loyal customers. Another example of customer loyalty related to offers is giving discounts on a brand’s website. In this case, the discount will only be granted to existing customers who have a membership.

 

  1. Building relationships through social media

To gain customers’ trust, reach out through social media. In this way, product information and attractive offers can be delivered easily and effectively. In addition, brands can also invite customers to provide testimonials for a product. By sharing their respective experiences, customers can invite others to buy the same product.

 

That’s an explanation of what customer loyalty is and how to build it to strengthen it. To keep existing customers, you also need to know what they need over time so your business can offer solutions.

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