Skip to content
crmnuggets
Menu
  • Home
  • ABOUT
  • CRM
  • RCCG SOD
  • FACEBOOK ADS
  • TERMS
  • PRIVACY
  • HIRE ME
Menu

Follow Us On Social Media

Facts About Customer Loyalty In CRM

Customer Loyalty In CRM: How To Delight Customers

Posted on April 18, 2023September 22, 2023 by Adeniyi Salau

 

Definition

A customer is loyal if he continues to buy a particular product, or service after the first purchase. It can also be seen as the desire of an organisation person to resist offers from competitors and stick to a particular product(s) or service(s).

 

Importance of Customer Loyalt

Customer loyalty helps businesses to retain lower costs, higher margin and greater profits than businesses that fails to satisfy and retain their customers. What we are saying here is that, if an organization has loyal customers, they will spend less on adverts or other drives that are aimed at attracting new prospects into the organization. That is why it is said that loyal customers are the principal drivers of profit.

 

In any organization that is customer-centered, the main reason why they have decided to tow that line is to retain their customer Research shows that the cost of acquiring a customer is almost five times of that of retaining them. Heavy advertisers confirm this too. Loyal customers continue to purchase your products and services. As they grow with your organization, their value increases as they also introduce new businesses to your organization.

 

 

OBJECTIVES OF THIS ARTICLE 

In this chapter, we want to take a look at what customer loyalty is.

 

·      What are those things that make customers to be more loyal to an organisation?

 

·      What is a brand promise?

 

·      How caii you use brand promise to your organization’s advantage. All these will be examined in this chapter

 

 

 

Components of Customer Loyalty

We have two basic components of customer loyalty, Perceptual and transactional components. Perceptual component are loyalty that is based on perception. This happens when customers become          based on their attitudes, opinions and emotions. It happens when customers feel fined after they have used a particular product. It has to do with how much the organization is able to meet the customers’ pre-purchase expectation. For an example, a customer that bought Mercury soap or cream because he wanted to tone his body.

PEOPLE ALSO READ:  The Customer In CRM: What You Should Know About Them
Powered by Inline Related Posts

 

Transactional measurement of loyalty has much to do with customers intentional or tangible purchase behaviour, such as inclination towards making repeat purchase. Some just like to make repeat purchase, not necessarily because the product satisfied their needs.

 

Customer might decide to stick to an organisation because of the stress involved in searching for another product that will do just the same thing. This might be attributed to search costs, transaction cost, learning cost and other forms of risk associated with switching to a competitor.

 

Wallet Share

This is one of the ways of measuring customer loyalty. It has much to do with the amount of money a customer is willing to share w¼th the an organisation over a particular period of time. You can determine this by dividing total purchase of the corporate brand in a particular category, say toothpaste by their total purchase in a specified category

 

Note:  It is reasonable to assume that loyalty is re-purchase behaviour

 

Loyalty is also a process, it is not something that happens overnight but an organisations can evolve means of bringing it alive by fostering behaviours and implementing processes and technology that will make customers to stick to the organisations minding mouth watering offers from competitors.

 

How to Create Customer loyalty

When an organisations wishes to build a loyal customer base, they must be intentional, consistent and different. They must be ready to add values to their customers. The must be able to serve their customers in such a way that serving customers in a unique way becomes an engine for growth in the organisations.

PEOPLE ALSO READ:  Relationship Between Affiliate Marketing And Influencer Marketing (+Examples)
Powered by Inline Related Posts

 

An organisations that wishes to build a loyal customer base must be able to identify their profitable customers. They must be able to do things differently. Not only that, they must be able to offer services in such a way that they leave a lasting impression in the mind of their customers.

 

If customer loyalty is based on customer behaviour, it will more be effective in making customers  to be more loyal and satisfying their needs.  It will also turn loyal customers to advocates who advertise your products and services without your paying a dime!

 

Brand Promise

This heading is self explanatory enough. Brand promise is just what customers should expect from your product. It is what customers expect your product to do for them. It should be stated from the onset that, what you expect your product to do will determine how you invest in your employees, your business, your product, technology and delivery channels. Therefore, brand promise lies at the core of the customer strategy

 

Loyalty depends on how the customers view your brand and other organisations that produce the same goods and services that you are producing. Customers are loyal to you because they believe that, that is the best decision to make at any given time. They might likely consider what it will cost them to switch over to a competitor such as time, effort, money or all the three.

 

This is telling us that if you want your customers to remain loyal to your organisation, you must go the extra mile. Do more than your competitors will do for them. It has been observed that when an organization does more than their competitors will do, their customers will remain loyal until one of the competitors raise the bar. That is why a customer-centric enterprise must have a consistent customer relationship strategy. With time, loyalty becomes an attitude. The customer finds it very difficult to shift to another brand. He will also gladly accept higher price which might be perceived as higher value by the customer.

PEOPLE ALSO READ:  2 Dimensions Of Customer Relationship
Powered by Inline Related Posts

 

Summary

So far in this chapter, we have talked at length about customer loyalty which we defined as repeat purchase. We also said the components of customer loyalty are perceptual and transactional.

 

We also discussed ways of creating customer loyalty which we said must be intentional, consistent and different. They must be ready to add values to their customers.

 

Finally, we talk about brand promise which is what people had in mind before they purchased your product. If you fall short of their expectation at any given time, they arc likely to look V the direction of our competitors.

 

Brainstorming Session

  1. What is a call centre?’ do you think that the establishment of a cell centre translates to the fact that an organisations is customer centered?

      

  1. Explain Segmentation and Profiling in relation to Etisalat products and services.
  2. Why do you think that organisation needs to segment and profile their
    customers?
  3. “Without a proper customer strategy, a CRM strategy cannot succeed” how
    truth is this assertion.

 

Action Point
PS: I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you could drop your comment. Thanks in anticipation. 

Fact Check Policy

Contents hide
1 Fact Check Policy
2 OUR MISSION
3 OUR VISION
3.1 Official Social Media Pages for crmnuggets.com
3.2 Related posts:

CRMNuggets is committed to fact-checking in a fair, transparent and non-partisan manner. Therefore, if you’ve found an error in any of our reports, be it factual, editorial, or an outdated post, please contact us to tell us about it.

Become Part Of our Fan Base on Facebook. Click Here.
Follow Us on Twitter. Click Here.
Many Crypto. One place. Use Roqqu

Hi, I now use RavenBank to send, receive and save money. I also pay my bills with ease, you should try it out too

OUR MISSION

To create well-reached contents that will increase the intellectual prowess of our readers. 

OUR VISION

To become a reference point in the blogging space by the year 2030. We want to be among the first 30 blogs in Nigeria. 

Official Social Media Pages for crmnuggets.com

To Get Email Updates when we post new content, Click Here.

 Join Our Telegram Channel: CRMNUGGETS
Twitter: @crmngr
​Facebook Group: @AdeniyiSalau
Facebook Page: CRMNuggets
Instagram: @crmnigeriablog
Pinterest: CRMNUGGETS
 Threads@crmnuggets
Tiktok: CRMNUGGETS  
Fact Check Policy
Contact Us
Sharing Is Caring. If you enjoy this article, help us share with others.
truehost

Related posts:

  1. Overview Of Customer Relationship Management
  2. Customer-Centric Strategy In CRM: What You Should Know (+Examples)
  3. Internet And CRM: The Relationships And Differences (+Examples)
  4. Customer Interaction In CRM: The Proper Way OF Engaging Customers

Post navigation

← Customer Care In CRM: How To Retain Customers For Life (+Examples)
Customer Satisfaction In CRM: A Practical Guide (+Examples) →

4 thoughts on “Customer Loyalty In CRM: How To Delight Customers”

  1. Fashina Oluyemi says:
    April 26, 2023 at 8:03 pm

    After the training,are we going to receive certificate sir.tnk

    Reply
    1. Adeniyi Salau says:
      April 27, 2023 at 4:53 am

      Yes

      Reply
  2. Fashina Oluyemi says:
    April 26, 2023 at 8:05 pm

    We need certificate sir.

    Reply
    1. Adeniyi Salau says:
      April 27, 2023 at 4:53 am

      That will be provided Sir.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CHECK THIS

WE GOT YOU COVERED

You may also like

  1. Overview Of Customer Relationship Management
  2. Customer-Centric Strategy In CRM: What You Should Know (+Examples)
  3. Internet And CRM: The Relationships And Differences (+Examples)
  4. Customer Interaction In CRM: The Proper Way OF Engaging Customers

SEARCH THROUGH OUR BLOG

HOST WITH REST OF MIND

truehost

NAVIGATE HERE

© 2025 CRMNUGGETS | Powered by Minimalist Blog WordPress Theme