Factors Affecting Customer Loyalty

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MODULE 3
Customer Loyalty Comprehension

Module Description
The goal of this module is to explain the concept of customer loyalty, its significance, its benefits, and the factors that affect customer loyalty. Here it is explained why customer loyalty is beneficial for a business and how it helps in profitability. This module discusses the types of customer loyalties, which ones among them are profitable and which are not, as well as the methods to turn non-profitable loyalties into profitable loyalties. It also shows the reasons why a business should invest in customer loyalty programmes. Some statistics are shown which explain why some companies who invest in customer relationship programmes profit more than their rivals do. The factors that affect customer loyalty are described. It also points out the principles that a company needs to follow, to reap the benefits of customer loyalty.
Additionally, this module explains how customer loyalty and customer satisfaction are different and why businesses need to look into customer loyalty programmes rather
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Companies need to invest in increasing the quality of their products so as to not have any excuse for poor customer experience. Even though maintaining a good relationship is vital to customer experience, customers detect a poor quality product and will soon defect to the business’s competitors.
Employee behaviour: Since sales executives are the main point of contact between customers and the company, the way they interact with customers has a huge impact on customer experience. They need to be polite, skilled, knowledgeable and quick in their response to the customer so that waiting time of the customer is reduced to a minimum and the customer can proceed with the purchase quickly and
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