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Customer Loyalty

The result of providing CX Excellence at every step of the customer journey. 


What is Customer Loyalty? 

Customer Loyalty is the state when a customer consciously chooses a product or a service from the same brand, repeatedly. 

It goes further. A customer is loyal when they have a strong feeling of support or allegiance for your brand or organisation. They are not actively searching for alternatives in competitors offering similar benefits, even if the price could be lower. They trust that you can take care of their needs and meet or exceed their expectations. 


Acquiring vs Keeping Customers

The cost is much lower

Loyal customers are extremely valuable to your business. Acquiring new customers can be up to 5 times more expensive than nurturing and creating a stronger bond with your current customers. As you create a bond with your customers, they will become more inclined to choose your products and service over your competitors. 

Advocates (Your Best Sales Team)

Today, our potential customers find it difficult to trust a company they have never been in contact with before. However, if their friend, colleague or family member recommends a brand to them or they post an update on social media, they automatically have ‘positive prejudice’ towards the brand. If you can take care of your current customers exceptionally well, they will get you new customers through their contacts. 

Remember: This works both ways. If you don’t put the customer at the centre of all decisions they might spread negative publicity about your organisation.

Lower Price Sensitivity

86% of customers are willing to pay more for a great customer experience. Loyal customers are willing to pay a higher price and will buy more products, more often. It’s important to note that if you start increasing your price for your loyal customers without upholding or surpassing their expectations, their trust and loyalty may be affected. 


How to Measure Customer Loyalty?

Net Promoter Score (NPS)

NPS asks customers the likelihood of them recommending your brand to others. It is also a way to measure customer attitude towards your company. Calculating NPS properly is all on our courses!

Net Promoter Score(NPS) = % of promoters - % of detractors


Regular Purchases

Tracking if your customers purchase repeatedly and within different departments is a direct indicator of customer loyalty. You can also use these metrics to alter your marketing strategies. Adobe found that 40% of revenue is generated by returning customers who only make up 8% of the total amount of visitors. 

Engagement Levels ( SM, Memberships, etc) 

Levels of engagement on social media, memberships or in person events can be a great indicator of customer loyalty. Although it’s extremely difficult to get information on specific individuals, the statistics such as likes, shares and comments can be a good indicator if people are interested in your products. The levels of signups for your membership will let you know if your customers are interested in being a part of your brand’s family. 


How can you improve Customer Loyalty?

The answer is simple. Strive for Customer Experience Excellence. Using our CX Academy Framework you can create a strategy that will ultimately improve your CX and your customers will become more loyal. 

If you want to find out more about how to nurture and create loyal customers sign up for one of our courses today at: thecxacademy.org/courses.

For more information please contact: info@thecxacademy.org