What makes a retail business survive? The answer is actually quite simple, customer loyalty. Businesses need to have repeating customers who love the brand, especially in today’s highly competitive environment… But what is customer loyalty? It is the link between the customer and the retailer. Why is this important in business terms?
Because Loyal Customers:
–Generate more revenue!
-The expenses related to keeping them tend to be lower than that of attracting new ones.
-Increase the amount they purchase and value the brand as their confidence increases with loyalty management.
-Are the best advocates for the company!
-Give retailers an advantage over their competitors, it’s hard to break the trust!
-Are less sensitive to changes in prices, because they value the brand and are conscious of the value they are receiving through their purchases.
-Are early adopters of the company’s new initiatives, this is great because they can become references for new products!
In all, there are plenty of benefits in terms of revenue, market positioning, marketing, and even strategy. Customer loyalty is one of the most important aspects in business survival in today’s markets. This could be why we have seen a shift towards creating exclusive experiences for customers.