{"id":36215,"date":"2013-04-12T00:00:00","date_gmt":"2013-04-12T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/friday-five-5-reasons-why-customer-loyalty-matters\/"},"modified":"2025-07-03T02:39:05","modified_gmt":"2025-07-03T09:39:05","slug":"friday-five-5-reasons-why-customer-loyalty-matters","status":"publish","type":"post","link":"\/us\/en\/blog\/friday-five-5-reasons-why-customer-loyalty-matters\/","title":{"rendered":"Friday Five: 5 Reasons Why Customer Loyalty Matters"},"content":{"rendered":"<p style=\"text-align: left;\" align=\"center\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-10767\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/blog_brand_loyalty.jpg\" alt=\"blog_brand_loyalty\" width=\"640\" height=\"514\" \/>In recognition of International Customer Loyalty Month<i>,<\/i> today\u2019s Friday Five provides tips and tactics to ensure your business leverages customer loyalty to the fullest. Last week&#8217;s post, <a href=\"\/blog\/2013\/04\/friday-five-5-tips-for-creating-customer-loyalty-for-your-business\/\">5 Tips for Creating Customer Loyalty For Your Business<\/a>, provided actionable steps any business can take to jump-start a thriving customer loyalty strategy. Today I share five reasons why your business should care about customer loyalty:<\/p>\n<p style=\"text-align: left;\">1) The 80-20 Rule<\/p>\n<p style=\"text-align: left;\">The 80-20 rule simply states that 80 percent of business comes from 20 percent of customers. This rule is widely accepted amongst businesses of all shapes and sizes &#8211; generally, <strong>a small group of your customers are generating the bulk of your revenue<\/strong>. Celebrating, acknowledging and rewarding these 20 percent help to ensure they continue to show loyalty to your business.<\/p>\n<p style=\"text-align: left;\">2) Word-of-Mouth Marketing<\/p>\n<p style=\"text-align: left;\">To quote Bonnie Raitt, \u201cLet&#8217;s Give Them Something To Talk About\u201d! Every business hopes to capture the attention of new customers, and what better way than word-of-mouth-marketing? <strong>With a strong loyalty program, you give customers something very specific to talk about<\/strong>. <a href=\"\/blog\/2012\/06\/5-ways-to-thank-your-customers\/\">When a customer is treated as a VIP, they tend to want to tell everyone<\/a>. \u201cI got a free cup of coffee today,\u201d \u201c<a href=\"https:\/\/www.ringcentral.com\/office\/phone-system-features.html?bmid=BLOGNEW\" target=\"_blank\" rel=\"noopener noreferrer\">RingCentral <\/a>sent me a package with a ton of cool swag,\u201d etc. If your loyalty program is fun, engaging and rewarding, you\u2019re sure to get people to talk about it!<\/p>\n<p style=\"text-align: left;\">3) <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention\/\">Customer Retention<\/a><\/p>\n<p style=\"text-align: left;\">Loyal customers tend to stick around through the good times and the bad. Many companies focus on getting new customers, but keeping those customers you\u2019ve already done business with is imperative. A loyalty program ensures your business continues to focus on the customers who continue to transact with you. (More on <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention-rate\/\">how to calculate your customer retention rate here<\/a>.)<\/p>\n<p style=\"text-align: left;\">4) Invested Customers<\/p>\n<p style=\"text-align: left;\">Loyal customers care about more than just transactions, however. They want to see you succeed and genuinely care about how both you and your business are doing. Your <strong>loyal customers can provide honest and constructive feedback<\/strong> and look out for you during a crisis. They share success stories and provide useful referrals. Loyal customers are on your side!<\/p>\n<p style=\"text-align: left;\">5) A Competitive Edge<\/p>\n<p style=\"text-align: left;\">If your competition has failed to implement a customer loyalty program, you\u2019ve got a serious competitive edge. With a strong loyalty program, you\u2019ll make it easy for consumers to select you over businesses that do not reward and acknowledge their loyal customers. <strong>People choose to do business with those who appreciate them, listen to them and value their business<\/strong>.<\/p>\n<p style=\"text-align: left;\">Why does customer loyalty matter to <i>your<\/i> business?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recognition of International Customer Loyalty Month, today\u2019s Friday Five provides tips and tactics to ensure your business leverages customer loyalty to the fullest. Last week&#8217;s post, 5 Tips for Creating Customer Loyalty For Your Business, provided actionable steps any business can take to jump-start a thriving customer loyalty strategy. Today I share five reasons &#8230;<\/p>\n","protected":false},"author":29,"featured_media":36216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18390],"tags":[260,2075,2043,2102,2103,254,2104],"class_list":["post-36215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-communication-and-collaboration","tag-business-success","tag-customer-loyalty","tag-friday-five","tag-international-customer-loyalty-month","tag-loyalty","tag-marketing","tag-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Friday Five: 5 Reasons Why Customer Loyalty Matters | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"In recognition of International Customer Loyalty Month, today\u2019s Friday Five provides tips and tactics to ensure 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