Why Is Customer Loyalty Important? 2 Principal Reasons

By: | February 28, 2020 | Tags: , , |

Why is customer loyalty important?

If you can answer this question, you are well on your way to building customer loyalty.

If not, by the time you’re done reading this post, you’ll have a checklist of questions in your arsenal to help you conduct a customer loyalty analysis.

Are you ready to discover, “Why is customer loyalty important?

How to Maintain Customer Loyalty

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Why is Customer Loyalty Important?

Keeping loyal customers happy is a key driver in an ongoing business strategy for all you wise entrepreneurs out there.

To ensure that you are going to succeed in the long term, loyal customers are what you need.

How to Maintain Customer Loyalty

So how are you going to encourage them? When a loyal customer shops with you, the amount they spend is far greater than an infrequent customer. They know what they like and where to find it.

Unfortunately, in today’s world, other companies are always trying to poach your customers, so you need methods and ways to stay at the top. 

Why is customer loyalty important?

Image from Pixabay

Consumer rewards

Do you have a loyalty scheme? If not, it is worth setting one up. You can then offer loyal customer discounts on items they purchase, giveaways, and freebies all associated with their shopping habits.

After all, points mean prizes. If you can understand your customers a little bit, you can develop a better bond with them as they know they will get what they want cheaper with you through the loyalty scheme.

You could set up competitions too and give some excellent prizes. This could be on point accumulated as an extra, for example. Customer rewards are a great idea to keep a loyal base.

Customer Service

Think about the customer experiences if something goes wrong. This is where the company is really tested.

Invest in training your staff in being as helpful and efficient as possible. If the customer contacts you, you need to respond in a timely way.

The staff also needs to have the correct software to take customer calls and deal with all problems appropriately. Consider implementing call center technologies to meet all customer needs. This means they need to record them too.

There is nothing worse than having an issue and no one being able to help. All customer queries should be treated as a one study opportunity to improve. You want the customer to have a memorable experience for all the right reasons. 

Social media

Get online and talk to your customers.

Learn about them and how they engage with each other. What are their motivations and drivers? How are you able to add value to their lives?

If they ask you a question, answer it in a timely fashion. Think about underlying motives behind questions, perhaps private message customers.

Also, share their posts. Can you detect any shifts on cultural thought which may need to be incorporated in your business model?

Social media gives you a way into the social consciousness like never before.

Think about buzzwords and phrases and how these are being used by your customers. How does your brand work in that context?

You need to stay relevant, so this sort of customer loyalty analysis is essential.

Employ your social media profile to learn and research the competition. How are they engaging with your customers?

Wrapping Up: Why is Customer Loyalty Important

You need to think about your USP (unique selling point) and how best to use this as a division between you and your competitor. You have to be seen as better. This will promote loyalty. So, learning and researching is an absolute must.     


This post provided two answers to the question, “Why is customer loyalty important?

First, keeping loyal customers happy is an effective business strategy.

Next, loyal customers will ensure your business’s longevity.

Then, this post offered a customer loyalty analysis. Use the questions this article posed as a checklist to ensure your customers stay happy.

Then, you’ll be in a position to explain to others, “Why is customer loyalty important?”

I look forward to your views in the comments section. Do you have any suggestions for boosting customer loyalty?

For example, can you share any information about b2b loyalty programs? Business to business loyalty programs is an effective way to keep loyal customers happy.

Readers, please share so entrepreneurs learn the answer to the question all business people should be asking themselves: Why is customer loyalty important?

This post was made possible by the support of our readers.

  1. Natalie Portman

    Wow! This is a fantastic step by step process for successful blogging. Outstanding guide that anyone can benefit from even if you have an established blog. Thanks so much for sharing your wisdom and experience!

  2. Melinda J Mitchell

    Hey there BFFJanice,
    Long time no hear from, huh? Sorry I haven’t been by for a while.
    I always learn so much from you about blogging!

    • Janice Wald

      Hi BBFFM,
      So great to hear from you! Are you following the presidential election? I keep hearing about Florida in the news, and I think of you. Awww…
      Thanks for the compliments and comments.

  3. Bella X

    Yes Customers are key in bringing in revenue for all businesses. How they are treated will determine how long they have been with us as customers. If they have been with you for a long time, giving discount to loyal customer is good way to keeping them in your business. This is showing our gratitude and appreciation as it shows that they are valuable clients.

    • Janice Wald

      Hi Bella,
      I agree with what you wrote. I go to a place where I am “grandfathered in.” I get a discount and appreciate it.

  4. Aman kumar

    Hey Janice,

    Thanks for sharing such great information with us. It’s really helpful for us because I’m also a blogger. I absolutely agree with your all tips and tricks about happy customers.

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