Customer loyalty- importance, benefits, and stages

Customer loyalty is the inseparable relationship between customers and a business whereby they repeatedly buy from the same company over and over again.

What does it take to win over a customer's heart? What procedures must you follow until customers fully accept that you are their number-one go-to brand? This is a question that all marketers looking to win over customers go through every day. This article unravels most of the questions asked for a better relationship between a brand and a customer. Sit tight as we read through.

What is customer loyalty?

Customer loyalty is the inseparable relationship between a customer and a business in a manner that no matter what happens, the customers keep buying from your company, unlike other companies that sell the same products as you. Most customers stick to the brand since they believe it meets their needs and wouldn't want to leave them.

Why is customer loyalty important in business?

Is customer loyalty important? Yes! The benefit that comes in a business due to their customers being loyal to them is worth a dime. Mostly, business owners will be assured that you will return to buy their products, which gives them even more joy and hope. These are the reasons why customer loyalty is essential as follows;

  1. Increase in sales

If a customer is loyal to your brand, there's a high possibility of them making continuous purchases from you. This will lead you to make them more sales, which will benefit you as a business person.

  1. Customer loyalty retention

The rate at which loyal customers will keep returning for your products and services will be significant to your business. These customers are the ones that are going to uplift your business, and at the end of the day, it's your job to make them happy in order to retain them.

  1. Increased revenue and profitability

With a loyal customer onboard, you will make more than enough sales to bring you revenue, which would be a positive profit on the table. One thing about loyal customers is that they would buy the usual products they are used to but will also be flexible to try on other products that go hand in hand, which will lead you to have that extra cash.

  1. Cost saving

Maintaining a repeat customer is cheaper than a new one since you don't have to put in an extra marketing effort to convince them to buy your products. All these processes are unnecessary for a continuous customer since they are already aware of your products, and it's a sure purchase since they prefer you to other brands. This will help you save on the marketing and advertising costs needed to make sales.

  1. Increased referrals

A loyal customer will easily tell and refer people to your business since they have experienced a positive change from what they are getting from you. Through this, your business can acquire new leads and make more sales. Not only will you gain these, but also, through them, it will help your business grow.

How to build customer loyalty

In order to build a relationship with your customers, you need to develop customer loyalty strategies that will allow you to win over a customer's trust. With us are some of the things you can put into consideration as follows;

  1. Provide a loyalty program

Through a customer loyalty program, you can show your returning customers how much you appreciate them. These actions, such as discounts and coupons, among other relatable gestures, will encourage them to come back for more and want to be associated with your brand.

  1. Know your customers

Knowing your customers will help you have a personalized relationship with your customers. This will ease your relationship and give them an easy time to come out free and engage with you since you will have known them by their names, you can address them, what they like, and all that makes them feel you are concerned about them.

  1. Set referral programs

The goal behind developing a referral program is to appreciate by giving loyal customers rewards for their hard work by referring other customers to buy your products. Through them, you will be gaining more customers and making more sales. These rewards can be anything from discounts and free products, among other appreciable actions for them.

  1. Ask for feedback

Give your customers a platform to give their feedback so you can know which areas need improvements and what needs to be updated. This will help you achieve great goals and be able to focus on areas that would have resulted in customers churning.

  1. Provide better customer service

Nothing beats the urge of customers wanting to return back without better customer service. How you treat your customers on the first day of their interaction with you will determine if they wish to come back another day or choose not to. Always welcome them warmly, so they to feel welcome any time.

Benefits of customer loyalty

Gaining more loyal customers will do more good to the company than harm. Through a customer loyalty journey, you will be able to adjust to a lot of changes that will positively impact your company. These are the benefits you are going to gain through your customers as follows;

  1. Increased customer retention

Once a customer has liked what you are offering them, the probability of them returning more and more is high since they have earned your trust and what you have. This would lead to an increase in customer lifetime value.

  1. Improved brand visibility

Loyal customers would be more willing to share a word about your brand with other people or post about you on their social media pages. Through this action, your brand will be seen by lots of people, and if they want to try out the same products and see results, they will reach out to you in no time.

  1. Increased sales

As a business person, you should be able to understand your customers' lifecycle as this will determine how much they would go to stay loyal to your what you are selling. The more they stick, the higher the chances of them referring a group of their friends and followers to your business. This will lead you to earn more revenue since you will also sell to them.

  1. Business growth

It is very important to understand that the effort you put into your customers to the point of them becoming loyal would lead your business to grow. The connection and nature of your relationship should be able to get to a higher level if your services are of good quality.

Stages of customer loyalty

In business, everything has a stage, and when it comes to customer loyalty, the following are the stages you will find. These stages are what will determine your position in the business world. Let's look at these stages as follows;

  1. Awareness

Creating awareness for your business is the first step you should put in mind if you want to have a relationship with your customers and for them to become loyal. Be creative with how you want this awareness to be made, and use all the channels you can to let your business be known from all over.

  1. Interests

After you have created awareness through all media channels, you will be able to attract customers from different areas reaching out. They would like to know more about your products, and if they get a better explanation, they will consider purchasing.

  1. Trials

Give your customers free trials to see how your products would help them; if they like them, they will return for more. Note that by giving them these free trials, you can let them know how they would benefit from them, and if there's any change to be observed, they should keep in touch. You will be creating a friendship through these communications.

  1. Loyalty

Customers will choose to remain loyal to your products through your business if they truly believe your business is worth it and satisfying to them. They would opt to come back for more of your offers and see a change from what they are used to.

  1. Advocacy

Since customers you would have gained through your business are satisfied and confident in you, they would highly spread a positive word about your business to their people, who will then want to check in and get the same from you.


There are many ways a business can approach customers to convert them into returning customers. They can develop customer loyalty KPIs that would act as a guide on what they are supposed to focus on to achieve their goals. You should always be able to know how you can improve customer loyalty for your business to grow more.

Last updated
April 18, 2023
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