Customer loyalty 'essential for healthy firms'

Thursday, 11 March 2010

There are a number of reasons why businesses should strive to build

customer loyalty, an expert has claimed.Writing on the AmazingServiceGuy blog, Jim Logan pointed out that good customer relationships are vital to a company as without them it is unlikely that it will be able to achieve profitable growth.

He explained that it is more profitable to sell to an established customer than to find a new one, while repeat business tends to be more predictable than one-off sales.

"Loyal customers refer more business our way. The better we treat our customers, help them and add value to our relationship with them - the more our customers are willing to tell others," the expert added.

In addition, Mr Logan suggested that loyal customers can be used as a source of market research, by asking them about potential goods and services or finding out what they would like to see the firm do.

Last month, Ed Thompson, vice president and distinguished analyst at Gartner, predicted that firms' customer relationship management strategies will increasingly use social networking platforms.

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