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The Importance Of Customer Loyalty In Business

2997 Words12 Pages

According to Harvard Business Review in business loyal customers ensures high profit earning scope over general customers. Shep Hyken mentioned, “Satisfaction is a rating. Loyalty is a brand.” Business and its products successfully satisfies a handful of customers and then they trusts the brand and express loyalty towards the product by purchasing the items on regular basis and ignoring substitute items available in the market. Irrespective of the nature and size of the business role of customer loyalty is immeasurable and hence strategies are to enhance revenue generation. It is important in the process of business conduction. It has been studied that loyal customers of a brand often spends around $6000 to $8000 every year. Loyal customers …show more content…

Building relationship is not easy in business; hence companies focus on maintaining healthy relation with customers. Customers are at the heart of a business venture. Engaged consumers not only help business growth through repeat purchase, but also create a bond of trust with the company and a positive relationship assists in business growth and enhancement in a defined way. Assured repeat product purchase automatically eliminates competition from the business environment.

Loyal customers often increases business by encouraging product sell through recommending the brand to friends and also avoiding substitute products available in the market. They are dedicated and buy products or services more often from the same brand this increases brand value while reduces overall marketing expense. Thus focusing on increasing loyal customer base automatically assists in business enhancement, growth and profitability in an economic way. 4.2.3 Significance of Customer Loyalty for …show more content…

Social media is often identified as a present day version of word-of-mouth product promotion. Thus, use of social sites like Facebook, Instagram, Twitter, Blogs, Flickr, YouTube, Virtual worlds, Microblogging and LinkedIn help in generating discussion on particular product or services. Loyal customers share positive feedback on the platform and this circulates on the social media generating scope for thousands of people to explore feedback on the product and analyse product performance. Companies also collect feedback and openly discuss issues with customers.
Social media platform to enhance business

Case study on application of social media to enhance customer loyalty. After identifying key roles and responsibilities of the marketing department, companies like Tesco, Rolls Royce, Tesla or Toyota, focussed on developing a plan to promote their brand in the chosen market on social media platform and enhance business in a defined way. The manager begins by implementing environment scanning models to evaluate the condition of the chosen environment and understand if there will be obstacles to influence the business entry

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