Companies often invest more time and money in acquiring a new customer than in retaining existing ones. While retaining customers is often much more efficient. Measuring customer loyalty and measuring the effects of your follow-up actions on customer satisfaction makes that possible. It provides more grip on their customer experience (CX) and growth of your business results.
Why go to great lengths to win a new customer when it is much more effective to retain existing customers? An old marketing law teaches that it is five to seven times more effective to retain existing customers than to acquire new customers. Especially if the customer gets what he needs from you. According to recent studies, that old law is still relevant today. And the great thing is: we now have much more technology to measure the needs and satisfaction of each customer and to take targeted actions. Logical advice: start measuring customer loyalty to ensure greater Customer Experience.
Why is customer retention so important?
Apart from the smaller effort and investment required to retain an existing customer, your current customers are also the backbone of your business. They provide stability. Retaining these customers guarantees stability and makes it possible to make new plans and make investments for further expansion (with existing and new customers). Losing a major customer can have a direct impact on your existing business and activities. And what is not immediately apparent from a customer's turnover figures: existing customers are more willing to share their network with you, to enter into a partnership or to share their experiences as a customer with others. This is increasingly important in our online world.
Measure customer loyalty with NPS (Net Promoter Score)
Modern measurement methods – such as the GrowPromoter online platform – make it possible to measure customer loyalty quickly, easily and continuously. The Net Promoter Score (NPS) is a simple and powerful tool for this. A well-known NPS question is: How likely are you to recommend our company to people you know? The resulting score is interesting for measuring customer loyalty, but you should also look further afield. It is often possible to zoom in much further on customer loyalty within two minutes and a total of four smart (follow-up) questions. Why is someone enthusiastic or not? Why does someone rate your service with a 6.5 and not a 9 or 10? That's what we want to know! And by taking targeted actions and continuing to measure the effects at the right times, you can continue to increase customer loyalty and satisfaction. And with that your own results.