Loyalty is an essential strategy in the business world that focuses on maintaining and strengthening long-term relationships between a company and its existing customers. The primary goal of loyalty is to convert occasional buyers or one-time customers into loyal, repeat customers, resulting in a steady stream of revenue and sustainable growth for the company.
Loyalty is based on the premise that retaining an existing customer is generally more profitable than acquiring a new one. Loyal customers not only make additional purchases, but can also become brand advocates, recommending products or services to others and contributing to the company's positive reputation.
Loyalty strategies may include:
Loyalty entails more than just retaining customers; it involves cultivating robust, enduring connections that foster trust and mutual contentment. When executed proficiently, loyalty not only yields recurring revenue for the company but also nurtures an involved customer community that holds significant importance for the organization's sustained growth and triumph.
The Marketing Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.