Lesson 5º

 

 

 

 

 

 

 

Advantages of being a Loyal Customer

Loyalty represents advantages not only for the company but also for the client. Amongst the advantages for the company we can highlight the following aspects:

1. Provides and increases sales. Keeping clients loyal helps to sell new products. A great percentage of marketing in the financial sector is directed at the banks clients. The bank tries to sell them products that they don't already have. This is called Cross Sales. Those that get their salary paid into the bank are offered insurance and those that have both of these services is offered an overdraft. By maintaining loyal clients and getting them to repeat their purchases, sales figures increase.

2. Reduces the promotion costs. It is expensive to gain a new client. It is a lot cheaper to selll a new product to one of our faithful clients. Getting a great number of faithful clients allows us to increase sales, launch new products with a reduced marketing cost.

3. Retains employees. Maintaining a solid client database helps the stability of a business and work stability. The motivation and retention of employees can improve when we have high profile clients that provide a stable and solid business.

4. Less price sensitivity. Faithful and satisfied clients are those that allow a margin on the product's base price. Satisfied clients are a lot less sensitive to price. They are willing to pay more for a differentiated service and for the satisfaction obtained.

5. Faithful consumers act like they have been prescribed. One of the most important aspects of having faithful clients is getting them to communicate their satisfaction with the company. This is especially true with the services that have a high social component and are based on credability. For example, where do a dentists clients come from? Usually from a client that has recommended him.