Every business understands the importance of customer loyalty and retention to generate a continuing stream of revenue from existing customers. It’s always gratifying to see customers returning to buy again, but how do you know whether and how many of your customers are inclined to return? A major benefit of customer loyalty is referrals from existing customers to other buyers. Customers who are very satisfied with the product / service / solution from a company are more likely to recommend doing business with that company to colleagues, business associates, friends and family. Referrals should be a powerful component of every marketing strategy.
Before starting or running any customer loyalty and referral programs, it’s important to measure customer loyalty.
Mike Frichol asks “How does one measure customer loyalty?”