Customer loyalty has never been more important as businesses across the world are fighting for every dollar during the pandemic.
Businesses with loyal customers are going to be more likely to succeed than those without a loyal following. Your Net Promoter Score (NPS) is the percentage of customers who are likely to recommend your business. This is where you learn how loyal your customers are.
In this article, we look at why customer loyalty matters more today (and so does your NPS score).
The Age of the Customer is Here
The digital age has ushered in savvy customers. These customers can research your business, your services, and your products with a short visit to their smartphone.
Today’s customers are connected most of the day. They can glean information about the competition, view reviews, and make educated decisions every day.
Because the customer has control, it pays to provide top notch customer service which in turn engenders loyalty.
Brand Ambassadors are Key
Word of mouth marketing is powerful, and it’s free.
It’s one of the most important forms of marketing your business should harness. How? You use your NPS score to find your promoters, and you cater to them. After all, they’re the ones who are going to tell everyone you know how great you are.
Consider utilizing your own loyalty program to keep these promoters engaged. Train your staff to provide exceptional customer service.
By doing these things, you’ll harness the power of your brand ambassadors for word of mouth marketing.
Customer Retention is Vital
Retaining customers starts with customer loyalty. You’ll find that your loyal customers will stick around for the long term. These are also the promoters you learn about from your NPS survey.
Customer retention that stems from loyal customers is vital to your success, especially in the midst of a pandemic.
Again, consider a customer loyalty program to help retain your most loyal customers.
Beating the Competition is Crucial
Customer loyalty is key to overcoming your competition.
For example, if you have a loyalty program, and your competition doesn’t, the odds are you’ll have more loyal customers.
If you both have a loyalty program, do something that sets yours apart, so you have the competitive edge.
Your customers want to do business with you, but they want to know you appreciate them and value their business.
By sending a NPS survey, you can learn whether or not your customers feel like you’re meeting their needs. If you are, you’ll beat the competition.
Invested Customers Stick Around
Customer loyalty is even more important today because when your customers are invested, they are loyal and stick around. (tweet this)
The last thing you want is customers to go elsewhere. It’s extremely easy for them to do that in today’s digital age.
Customers who shop with you want to see you succeed, especially if they’re loyal and invested.
You can also learn a lot from your invested customers through your NPS survey and follow-up. They can provide you with constructive feedback to help your business grow.
This can be especially helpful as businesses navigate the pandemic.
Final Thoughts
Customer loyalty is measured through your NPS score. It shows you how likely customers are to recommend you to others. This loyalty is also what keeps customers shopping with your business instead of the competition.
Customer loyalty is so important today because this loyalty drives sales. It keeps you ahead of the competition. Why? Because loyal customers shop with you time and time again and are your brand ambassadors.
This is a huge win for your business, especially in the middle of a pandemic. While your loyal customers may account for around 20% of your business, they drive more than 75% of your businesses’ revenue.
For the reasons mentioned here, customer loyalty matters immensely to your business today as does your NPS score.
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Image: Clay Banks on Unsplash
