Online customer loyalty refers to the likelihood that a customer that has previously purchased a product or good from an ecommerce site will make another purchase in the future. Building customer loyalty is vital for all businesses, including those that operate online. In this article, we provide an overview of online customer loyalty.
It is estimated that the cost of acquiring a new customer is up to 25 times more expensive than selling to an existing customer. On top of that, existing customers spend, on average, 65 percent more than new customers. The takeaway: customer loyalty is extremely important.
Customer loyalty refers to the likelihood that an existing customer will purchase a product or service again from a company they have already done business with. This loyalty is the result of several things, including:
It may sound obvious to say because obviously brands want to make every effort to provide the best possible experience, satisfaction and products or services for their customers. However, it is important to highlight the importance of customer loyalty because loyal customers have the ability to grow a business faster than marketing and sales combined.
Customer loyalty is important for three primary reasons:
How does an online business ensure that their customers are happy and become loyal? First and foremost, they must ensure that they are delivering exceptional products and services, that they are meeting their customers’ needs, and that they are providing outstanding customer service.
Why do customer loyalty programs help build a loyal customer base? In short, it’s because they offer happy shoppers an incentive to return to a business to make future purchases. The more loyal customers a business has, the more revenue it stands to make in the long run.