What are loyal customers, when is a customer loyal and what is the difference with satisfaction? We cover six questions about customer loyalty in this blog.

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1 | What are loyal customers? 

If you are loyal, you are honest and sincere. When you talk about loyal customers, it means that they are loyal and have the intention to keep coming back and buy again. Loyalty is therefore very valuable. Loyalty is not focused on the past, but on the future and the extent to which someone remains loyal to your product, service or organization.

2 | When are customers loyal?

The basis for loyalty is the 'bond' a customer has with your organization, in other words how loyal he is to the brand or product. It is an 'investment' both from the customer' side and from the organization.

Customers who are loyal, are less inclined to switch to the competition, spend more and cost less. They are willing to forgive a mistake. It is easier to cross-sell and upsell with this group and they also talk positively about you and recommend you to new customers, generating more turnover.

The main goal of this research is to develop a method that can be used to improve the quality of the process of knowledge creation. 

3 | What is the difference between loyal and satisfied customers?

The essential difference is that satisfaction focuses on the past and meeting expectations. The level of customer satisfaction reflects what they think of the delivered service or product.

A satisfied customer can be loyal but is not necessarily so. However, there is a good chance that a loyal customer is satisfied, because he has the intention to make buy again.

4 | How can you measure loyalty? 

Loyal customers are the best predictor of revenue growth, as they represent the intention to make a repeat or follow-up purchase. But how do you know if a customer is excited? Loyalty can be researched in different ways.

One way is the Net Promoter Score. NPS is an important KPI and management tool, developed by Fred Reichheld. By using this measurement method, you ask one important question, namely: 'How likely is it that you would recommend our product / service / company to friends or family?

The respondent answers on a scale from 0 to 10 and then answers a number of follow-up questions to help you understand the underlying reasons for the score. Based on the given score, the respondents can be divided into three groups: Detractors, Passives and Promoters.

Read all about the Net Promoter Score (NPS) here.

5 | How can customer research help to increase customer loyalty? 

Insight into what motivates your customers to be loyal gives you, as an organization, the tools to implement improvements on an operational, tactical and strategic level. It is important that you continuously have insight into what your customers think of your organization. Conducting research once or twice a year provides you with insights that you can use to make adjustments in the long term. But in case of a negative assessment or a complaint, you are too late. You are always behind the facts and complaints can no longer be followed up. In addition, a periodic survey often only covers part of your customer base.

With continuous research you can arrange it in such a way that if a complaint comes in, you can contact us the very next day. You can solve the complaint immediately and sometimes you can even succeed in making a dissatisfied customer happy or even an ambassador! This way you can turn complaints into an opportunity!

NPS research can help you measure and increase customer loyalty.

6 | How to get loyal customers? 

How do customers get loyal? By knowing your customers' needs and monitoring and visualizing results, you instantly know where improvements are needed to keep customers loyal and create more enthusiastic customers. Only then can your organization make the step from measuring to improving, you get more and more loyal customers and that also ensures loyal employees.

Conclusion

Loyal customers are loyal to your brand. They spend more and are more inclined to forgive an organization's mistake. Attention to your customers and loyalty is more important than ever. In this blog you can find the answers to six questions about customer loyalty. Want to read more? Download the whitepaper below.

import_contacts Whitepaper

Whitepaper: Net Promoter Score

In this whitepaper, you will read about the NPS, how it works and how you can apply it yourself with our Net Promoter Score (NPS) research.

Download whitepaper

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