Sustaining Customer Loyalty
In order to attract and retain your most profitable business customers, one must devise and implement a customer strategy that builds, fosters, nurtures and extends relationships with your customers.
There is a very strong correlation between long-term business success and long-term customer relationships. Once a certain level of trust and comfort has been established, most customers prefer to remain loyal to companies and their products.
A company is more likely to retain its customers by delivering on its value proposition, hence the need to deliver the highest-quality of service. When your customer relationship is based on trust, cooperation and collaboration, the customer is more willing to listen to your new ideas, try your new products/ services, and considers you as a long term, trusted partner.
As the cost to acquire a new customer is much greater than the cost to retain an existing customer, businesses understand that it pays to nurture existing customer relationships. Depending on the industry, studies have shown that it may be as much as ten times costlier to acquire a new customer than it is to keep and develop an existing customer. If a good working relationship has been established, then it is easier to up-sell and cross-sell your products/services to this existing customer. If your customer’s business is growing, there is a good possibility that there will be an increased need for your products/services.