Why it matters: It helps both the business and the customer decide what to buy next. If customers are unhappy, they will switch to a competitor.
Table of Contents
Loyalty
Loyalty means customers keep coming back and tell others about the company. We measure it by repeat sales and word-of-mouth recommendations. A loyal customer buys from one company even if others have similar or better products.
Why it matters: Loyal customers are happy and recommend the company. This gives the business steady money.
Profitability
Profitability is how much money a business makes (or loses). Calculate it: Total revenue − Total expenses = Profit.
Why it matters: Profit lets a business pay employees, suppliers, and taxes. It helps the company grow. Without profit, the business will fail.
Customer Retention
Customer retention is keeping the same customers over time.
Why it matters: Keeping old customers costs less than finding new ones. New customers need ads, promotions, and research all over again. Old customers already know the company, so they spend more and cost less.
Know Your Customer
Get to know your customers well. Build a clear picture of who they are.
Companies collect data from:
- CRM (customer records)
- Sales
- Feedback
- Marketing results
Store all data in one place to create a customer persona. This shows the full customer journey and their value to the company. It gives smart insights to plan the next step.
Tip: If this seems hard, find a tech partner to help.
Keep talking to customers even if they are quiet for a while. When they need you again, they will come straight back. Strong relationships need care all the time.
Communication
Talk to customers often and in a personal way. Use the info from their profile and feedback.
How to do it:
- Send regular, helpful messages.
- Ask for their opinions (two-way talk).
- Use email, social media, or apps (face-to-face is hard).
- Create free newsletters or tips on topics they choose.
- Share useful advice and ideas.
Goal: Make customers feel valued and keep them coming back