Why Is Customer Loyalty So Important To Your Business?

Posted on Mar 27th 2015 under Customer Loyalty

The market for your chauffeured transportation services company is not infinite. You have a service area and a sufficiently sized fleet of vehicles to meet the needs of your current customer base and then some, but only a limited number of people will require rides. Each customer you obtain represents not just the cost of today's booked ride but a piece of an ongoing revenue stream that you can enhance.

Some companies you cater to may shut down or take their limousine business elsewhere, while other companies spring up and find themselves needing the type of service you offer. Clearly, the key to your success is making the most out of each customer.

The cost to acquire new customers may be fairly small compared to their lifetime value doing business with your firm over the years, but it does represent a great deal of time and effort put in by your staff. With that in mind, you should reinforce customer service among your staff to help ensure you keep more customers loyal.

There are five main reasons why customer loyalty is so important, according to a recent article at Next Up Asia:

  1. You can sell more. The likelihood that you will sell something to a new prospective customer ranges from 5 to 20 percent, compared to 60 to 70 percent when trying to sell to an existing customer. This means that all things being equal, you will get a better return on your investment when you focus on selling up and cross selling to existing customers.
  2. Every customer who feels a bond of loyalty with you serves as a kind of marketing agent or ambassador of your limo company's brand. This is especially important in a world where so many people are connected all the time via smartphones and the Internet.
  3. You will have a de facto sales team when your ordinary customers become extremely satisfied and loyal customers. They will be eager to tell other people about the benefits of being a customer at your firm. Recommendations from trusted friends carry a great deal of weight.
  4. While it's true that many are continue to tighten their belts and are still spending less money, you should know that the more loyalty you achieve with your customers, the more insulated your company will be to price competition. Loyal customers will not leave your company simply over an issue on pricing. You won't have to worry about your favorite riders jumping ship and giving a rival your business just because you have adjusted your rates.
  5. You'll get more high-quality and honest feedback when it comes from loyal customers. They have a vested interest in telling you the truth about what they like and what they don't like about your service offerings, since the result will be even better service once you implement their suggested changes.

At DriveProfit, our senior marketing professionals have more than 30 years of experience in limousine marketing. We know that each customer is valuable and will contribute to your revenue stream if you make sure to keep them loyal. For more information on developing customer loyalty at your limo business, please contact the experts at DriveProfit today by telephone at 203.426.7780 or via email at info@driveprofit.com.

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