MANAGEMENT

Detailed explanation-1: -Simply retaining loyal customers is much more cost-effective, as they bring higher profits at a lower cost. Loyal customers shop regularly. Because they’ve already had positive experiences with your brand, repeat customers tend to shop much more frequently than new customers.

Detailed explanation-2: -In addition to the fact that loyal customers are more likely to buy from a brand they trust, they are also more likely to advocate for your company. And with social media being a driving force in referrals, anyone with a computer, tablet or mobile phone can be a brand ambassador.

Detailed explanation-3: -Customer loyalty increases the profits by encouraging repeat business, reducing the operating costs for a business, establishing a favorable price premium, and by generating referrals. To be sure, it is important for businesses to find new customers.

Detailed explanation-4: -Customers tend to be more profitable if they: buy high-margin products. pay full price without negotiating discounts. place a small number of large orders rather than many small orders.