What is Customer Loyalty?
Customer loyalty is a feeling of allegiance a consumer has for a business and is usually characterized by a long-term relationship and the customer’s willingness to make ongoing purchases. Customers become loyal when businesses earn their trust, typically by consistently delivering satisfying experiences. It is important to foster customer loyalty because it ultimately has a positive impact on the bottom line.
An often used statistic illustrates one compelling reason to focus on customer loyalty – it costs five times more to acquire a new customer than keep an existing one. But the economic benefits don’t stop there. Loyal customers make repeat purchases, often spend more than new customers, and can become brand promoters by writing good reviews, posting positive comments on social media, and recommending the business to friends and family.
That last characteristic – brand promotion – is a particularly important aspect of customer loyalty because a recommendation from a trusted source is one the most effective “marketing” techniques. Customers’ willingness to recommend a brand is measured by their Net Promoter Scores® (NPS®). NPS is determined by asking one simple, but powerful, question: “How likely is it that you would recommend [brand] to a friend or colleague?” NPS is a proven measure of customer loyalty and a predictor of business growth.
Providing exceptional CX is an effective way to increase customer loyalty, but great CX doesn’t happen by accident. Many businesses have established Voice fo the Customer (VOC) programs as a way to design and deliver satisfying customer experiences that enhance the customer journey and create more lifelong customers. Customer Feedback software can help CX teams keep tabs on Net Promoter Scores and other indicators of customer loyalty.
About NICE Satmetrix
NICE Satmetrix is the leading global provider of Voice of the Customer (VOC) software used by the world's most forward-thinking companies to analyze and transform their customer service interactions. Our Customer Journey-based solution combines and analyzes customer interactions, solicited feedback, and operational data at enterprise scale to uncover blind spots, increase customer satisfaction and improve agent performance.
With consumers reaching out to contact centers for more reasons than ever before, providing consistent and optimized experiences is central to fostering loyalty and increasing customer lifetime value. NICE Satmetrix VOC enables businesses of all sizes to grow the value of customer service touchpoints and operationalize customer feedback.
With NICE Satmetrix VOC, the top VOC solution for contact centers, contact centers get access to:
Integrations with NICE inContact CXone and the NICE portfolio of contact center solutions
- Superior analytics
- Digital omnichannel and hassle-free IVR integrations
- Customer Journey-based design
- One-stop-shop for all your contact center VOC needs
NICE Satmetrix is the co-creator of the Net Promoter Score® (NPS®), one of the best indicators of customer loyalty and predictors of business growth. We've instilled our deep knowledge of consumer behavior into our VOC software to make NICE Satmetrix holistic VOC a true one-stop shop for Voice of the Customer with a self-service solution that meets the needs of organizations of every size.