Why loyalty is important for business

When a relationship between a business and a consumer is of high quality,

the chance for ongoing business is increased, because both see value and

mutual benefits in the exchanges. In other words, a high-quality relation-

ship benefits both your business and the customer. Customers, for instance,

have an easier time making decisions and their perception of practical value

is enhanced. Your company benefits by not having to resell the customer.

The pleasant nature of the exchanges between you and the customer are

agreeable to both parties. You’ll know when the relationship between you

and your customer is strong, because you’ll act as partners. Additionally,

relationship building and staying in touch with your customers serves as a

reminder of why they should buy from you and not your competitor.

Before you spend your time and money going after new customers that you

aren’t currently in a relationship with, consider the following statistics:

 ✓ Loyal customers spend 33 percent more than new customers.

 ✓ Referrals among loyal customers are 107 percent greater than among

non-customers.

 ✓ It costs six times more to sell something to a prospect than to sell that

same item to a loyal customer.

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