Increase Return On Investment (ROI) By Increasing Customer Loyalty

Everyone knows that increasing customer loyalty pays off with repeated sales. Working on methods to increase customer loyalty will increase your revenue and profits, but it can also lower costs. One of the best ways to increase customer loyalty is to be consistent when delivering best of class customer service and fast delivery.

The following 4 points have been proven over and over again in research studies and tests

The cost of retaining existing customers is significantly lower than aquiring new ones. Studies show that it is 5 to 10 times more expensive to obtain a new customer than to make a sale to an existing one.

A small improvement in customer retention can result in dramatic profit increases. Reducing customer churn can provide a big impact to your bottom line.

The cost of sales on business generated by customer referrals (word of mouth marketing) is substantially lower than typical customer acquisition costs.

Loyal customers are much more likely to buy “additional products and services” and are often more profitable (per sale) that new customers.

In coming posts I will discuss some best practices associated with customer feedback programs and how you can use that feedback to improve customer loyalty, referrals, and custom retention.