Marketing has many facets. You can often read about online marketing and SEO. These are important elements in attracting new customers to the company. Long-term customer loyalty can also be positively influenced by online marketing. However, it is only part of a whole mix to keep clients.
Customer loyalty as an important part of marketing
In order to bind customers to a company, interested parties must first be made aware of the brand or product. There are a large number of instruments in online and offline marketing that are more or less expensive.
A good search engine optimized website or the sending of e-mails are definitely inexpensive marketing instruments. Advertisements via Google Ads or social networks are more expensive. The success of a measure can be measured well here. Various evaluations offer the possibility of measuring the success of a marketing campaign.
In addition, classic offline advertising is a means of attracting customers. Advertising on television and radio is more expensive than advertising in an advertising paper. The disadvantage: the success of the advertising is difficult to measure.
No success without customer loyalty
In the start-up phase in particular, the focus is on customer acquisition. The associated measures, however, have a high level of wastage, which is why customer loyalty is a major focus in the long term.
The aim here is to bind existing customers to the company in the long term. In addition to an attractive offer, an appealing presentation, fair prices and excellent service, emotional ties are important. Various studies have shown that acquiring a new customer costs five times as much as keeping an existing customer. It is therefore even more expensive to win back a regular customer.
The management consultants from Bain & Company have calculated that a five percent improvement in customer loyalty makes the company up to 75 percent more profitable . The positive economic effect is not just limited to lower marketing costs.
Young companies in particular tend to enjoy the new customers they have won. In doing so, they forget to take sufficient care of their existing customers.
Of course, it is important to continue to generate new customers, but this must not lead to the neglect of customers already won.
Customer loyalty – customer loyalty
buy other goods over time (additional sales)
are less price sensitive
have a lower level of supervision
complaints and returns are less common
recommend the company to friends and acquaintances
provide important information about individual needs with their purchasing behavior
These points make it clear why customer loyalty is so important. It increases sales and reduces personnel costs. Regular customers know the products and require less advice. This in turn lowers marketing and customer service costs.
An important factor is to develop a better understanding of the customer. The aim is to better understand their needs.