Customer loyalty is perhaps one of the most important ingredients for long-term business success.  First of all, you’ve likely heard the phrase, “it costs more to get a new customer than to keep a current customer.”  It’s repeated so often it has practically become a cliché. However, clichés are often very accurate; and this one certainly is. It’s much better to keep the customers you have than spend money trying to keep getting new ones. Here are several additional reasons why customer loyalty can be the key to long term business success.

1.  Loyal customers make repeat purchases. Repeat purchases, quite simply, means more money in your pocket. More money means you not only earn a higher income, it also means you have more money to put back into your business. Loyal customers therefore help you earn enough to continue growing your business.

#2 Loyal customers tend to buy more expensive products and services. You have a product or service portfolio that includes a range of products, right? Some are pretty low cost, entry level products. Others are priced on the high end. The goal is to work customers through your sales funnel until they buy your most expensive products. Loyal customers tend to buy everything you have to offer, including your high-priced products and services.

Once again, this means more money in your bank account, a higher income and more money to turn back into your business.

#3 Loyal customers spread the word. Loyal customers are loyal for a reason. They like and respect your business and what you have to offer. Quite often they reciprocate by linking to your website, talking about your business and spreading the word about what great products and services you offer. Loyal customers send more loyal customers to your virtual doorstep. They can be one of your best marketing tools.

#4 Loyal customers are easier to work with. Whether you offer products or services, loyal customers tend to be easier to work with. They may demand a higher level of service and they may have high expectations. Meet their demands and expectations and they’re a breeze to work with. The good news is, the mere fact that they’re loyal customers means you’ve already done half the work to meet their demands and expectations. Now you just have to maintain that credibility.

#5 Loyal customers keep the cash flow alive. Cash flow is critical to your short and long-term survival. When you have loyal customers who make repeat and regular purchases, you’re able to keep your bank account in the black. They’re tremendously valuable!

As a business owner looking toward the future, it’s important to look at what you’re doing right now to keep your current customers. Create a strategy to cater to their needs and provide excellent customer service. Continue to offer products or services that solve their problems and provide value. You’ll be on the road to long-term business success.