Most customer service leaders agree that satisfied customers create customer loyalty which, in turn, leads to higher revenue and greater profits.
Loyal and faithful customers matter. Their devotion typically manifests itself in repeat business, higher margins and positive word of mouth. In fact, according to:
- Bain and Company, a 5% increase in customer retention can improve profitability by 75%.
- Forrester Research, it is 5 times more expensive to acquire a new customer than to retain current clients.
- Nielsen, over 75% of consumers are most likely to buy a new product when referred by friends or family.
- The Direct Marketing Association, the average company loses between 10 and 30% of its customers annually.
- Gallup, a fully engaged customer represents an average 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer.
We agree that strong customer loyalty can enable companies to significantly out-perform their competition, but only if the necessary strategies are in place to turn customer satisfaction into revenue-generating action. These strategies are the critical link between a customer's feelings and whether or not they act upon those feelings.
Customers may love you. They may intend to invest in your products and services and talk about them with others...but do they actually translate intentions into real purchases, referrals and testimonials?
To gain the most from fulfilling your brand promise, you need to do whatever it takes to make it easy for your best customers to buy and recommend you. Our customer loyalty experts tell us that there are three simple steps to converting customer loyalty into customer action...all possible, all under your control, and often necessary to realize actual revenue growth.
The bottom line - when customers believe in your brand promise, they give more.
Read the 3 "Must Have"Steps to Convert Customer Loyalty into Customer Revenue
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
