Customer loyalty.

Question 1

Why is customer loyalty important?

Answer 1

For repeat purchases.

Question 2

What is important in building customer loyalty? How is this done by salespeople?

Answer 2

Good service - helps to build strong brand and appeal to customers more.
- Salespeople focus on good service to make people happy to increase the likelihood of a sale, especially where the item purchased makes up a large proportion of income (car or house.) They will provide good information about their product.

Question 3

Why is after sales service also important? Where is this more prevalent?

Answer 3

In case customers have a problem with the product after purchase to make the customer feel more valued and more likely to repeat purchase.
- This is prevalent in more expensive brands where businesses ensure to make customers feel valued - they are considered investments into the customer to see them return and spend a lot where valued.

Question 4

What do businesses use to try and increase customer loyalty, other than service?

Answer 4

Most commonly, businesses use loyalty cards and saver schemes.

Question 5

Why do businesses use loyalty cards?

Answer 5

They help to tie a customer in to a particular service provider or retailer - this is useful in markets with high competition.