Loyalty equals Profits

Posted by admin

July 8, 2008

Question: How do you improve customer loyalty?

Answer: The path to profitability is clear. Attract and retain more loyal customers and you will see revenues and profits increase at an exponentially faster rate. Loyal customers buy more often and refer more customers than non loyal customers. Increasing loyalty will not only increase revenue but can reduce operating & market expenses as well

When factoring in all marketing and promotional expenses, the acquisition cost of new first-time customers can be very high (often 5-10 times that of retaining a customer). It is far more cost-efficient to make a small investment that ensures the satisfaction & loyalty of existing customers rather than make continuous, larger investments to attract new customers to replace dissatisfied customers.

The question for many is how to earn the loyalty of more customers. Acquiring customer loyalty is a process. As with any process, it helps to have the proper tools to achieve desired results. Customer measurement tools allow you to track and better manage customer satisfaction, which is the first and most critical step in the path to increased loyalty and profitability. Implementing a good customer satisfaction program can quickly increase customer loyalty and grow your business.

Content provided by Bob Hettel at Searchlight Solutions. For more information please visit www.searchlightsolutions.com.

Financial