- Developing customer loyalty helps businesses to grow and be successful in the long term
- Good customer service generates customer loyalty which drives repeat purchases and helps the firm to reduce marketing costs when launching new products
Examples of how Businesses Develop Customer Loyalty
Method
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Explanation
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Example
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Customer service
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- When customers have a positive customer service experience, they are more likely to return and recommend the business to others
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- Zappos is an online retailer that is well known for its exceptional customer service
- They offer free shipping and returns
- Their customer service representatives are available 24/7
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Loyalty cards
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- A popular way for businesses to encourage repeat customers
- These cards typically offer rewards or discounts for frequent purchases
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- Sephora has a loyalty program called "Beauty Insider."
- Members earn points for every purchase they make
- They can redeem those points for beauty products or experiences
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Saver schemes
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- These schemes typically offer discounts or special pricing for customers who save money with them
- This helps customers gradually save up some money that can be used at periods when food bills are usually higher e.g Christmas
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- Sainsbury's offers a Christmas saving scheme
- Their discounts are then usually between 2% and 6%
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