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Six Reasons Customer Loyalty Is So Important (and Profitable)

[fa icon="calendar"] Aug 25, 2015 2:08:00 PM / by Matti Airas

 According to Harvard Business Review loyal customers are typically much more profitable than other customers. The reasons behind why they are so profitable aren't so well known or understood. Let's take a closer look.

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1. Loyal customers stay longer

People like to buy from a familiar and trusted vendor. They don’t change vendors until given a reason to do so. Probably the most important thing to know about loyal customers is that they will only leave if you break their trust or if your competition comes up with better and cheaper services. This is why it is crucial both to know what your loyal customers expect from you and to be aware of what your competition is up to.

2. Loyal customers buy more and more often

Loyal customers concentrate their shopping on select vendors. They even buy items from you that other customers buy elsewhere. They also tell you what new products you should add to your selection.  This is why you need to carefully listen to what your loyal customers are saying.

3. Loyal customers cost less to serve

Loyal customers are more familiar with your service, so they need less support. Rather than calling customer support when an issue arises, they are more willing and able than other customers to find a solution to their problem from your self-service portal.

4. Loyal customers insulate your company from price competition

For one reason or another, loyal customers aren't checking your prices against the competition as diligently as other customers. They trust you. Don't lose that trust: you need to know what they think about your pricing.

5. Loyal customers act as brand ambassadors

Customers don't tell their friends only about bad experiences. Good experiences–especially exceptional ones–make great stories, and they will share these stories with their friends. Most CX programs concentrate on service failures. Don't ignore the success stories!

6. Loyal customers provide honest, high-quality feedback

Loyal customers want to help you improve your company's services. Solicit feedback, and they will give it to you. If you want to test a new product or services, you can utilize them as a focus group. Just make sure your are open and honest with them about what your goals are.


Your loyalty drivers are hiding in open-ended customer comments. You need to make sense of what customers are talking about accurately and fast.



Do you know your loyalty drivers and eaters?
Can you detect customeres that are about to churn?
Can you collect product and services ideas?

For all that you need customer experience text analysis.




Topics: customer loyalty

Matti Airas

Written by Matti Airas

My passion is to figure out how to turn open-text feedback into well structured usable information.