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.