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Why Loyalty Is Important For Your Small Business
Prasad Vemulapalli | July 21, 2022


The power of loyalty in any small business cannot be overstated. Small business owners demand the loyalty of their employees and the loyalty of their customers. A loyal customer is a paying customer, and a paying customer is what every small business needs. 

The shortage of steady cash flow into any small business may be disastrous to the health and survival of that business. But getting a customer and guaranteeing their loyalty in a hugely competitive market is a lot of hard work. It takes a lot of marketing research, strategic planning, execution, and follow-up to ensure that your customers are satisfied enough with your products and services to continue their patronage.

This guide explains why customer loyalty is essential for your small business. But first, we should understand what customer loyalty is and how to ensure loyal customers.

Customer Loyalty How To Earn It How To Keep It

Customer loyalty is not given to a business on a platter of gold; you need to earn it with years of service and delivery. Earning the trust of your customers should be your brand's number one goal.

Essentially, you need to seriously consider several elements of customer loyalty if you want to earn and keep it.

Some key customer loyalty factors include:


The way your brand is marketed is essential if you want to drive traffic to your business and convert that traffic into paying customers. There are different marketing strategies that your brand can deploy for optimal effect. Advertising is one of such strategies to bring your brand and commodities to the attention of your target consumer group.


While a great marketing campaign can win customers, a bad commodity can ruin your efforts. Your products and services need to be top-notch to keep your customers coming back to you. 


The price of your commodity should be competitive, primarily if your business is operating in a hugely competitive industry. However, your pricing may also reflect the uniqueness of your product. 


To earn and keep the loyalty of your customers, you need to be able to sell and deliver your commodity in the most convenient way possible. Your customers should also be able to pay for your goods and services using several fast, cost-effective and digital payment methods. 

Today, many small businesses operate an eCommerce platform where they can sell their commodities online. Customers can pay using their credit or debit cards, different e-payment options like PayPal, Google Pay, Paysafecard etc.


This is an essential element of customer loyalty because you need to know what your customers think of your products, services, pricing, sales, delivery, and customer relationships. 

Your customer relationship management - CRM and customer loyalty go hand-in-hand. And getting valuable feedback from your customers will give you a clear idea of whether or not you will earn their loyalty.

Feedback is also a valuable tool for driving customer loyalty to your small business. Feedback can help you make quick amendments to your marketing strategy, commodity, pricing, sales, and customer relations to win the loyalty of your customers. 

Benefits of Brand Loyalty

The power of loyalty can have a tremendous impact on the success of your brand. Some of the benefits of brand loyalty include:

#1. Increased Patronage: When customers are loyal to your brand, you can expect an increase in the demand for your products and services. 

#2. Boost in Sales Turnover: The increase in demand for your commodity will boost your sales turnover. 

#3. Enhanced Profit Margins: As the demand for your commodity rises and your sales turnover increases, you can also expect a boost in profit margins.

#4. New Customers: Existing customers directly or indirectly influence the buying decision of other customers. Tesla alternative fuel energy vehicles are one of the best examples of brand loyalty where super-rich folks like Elon Musk can promote Tesla cars amongst the wealthy and influential members of society through his association with the Tesla brand.

#5. Growth, Expansion, and Diversification: Brand loyalty can encourage the rapid growth of your business with the availability of funds at hand. With this growth, your business will be open to expansion and diversification possibilities. 

The growth of your business will provide you the financial muscle necessary for you to produce new commodities in your industry or explore different business opportunities in other fields. Your business may seamlessly gain acceptance in new industries with a solid brand name made good by your loyal customers.

Customer Satisfaction Vs Customer Loyalty

There is a direct link between customer satisfaction and customer loyalty. A happy customer is a paying customer and hopefully a continually paying customer.

It is impossible to earn the loyalty of your customers without them being satisfied with what you are offering. But customers are not just looking for great products and services; they are also looking for great commodities at the right price.

Customers also want to be able to pay for this commodity quickly and with consummate ease. In addition, every customer requires professional customer relationship management reflected in the speed of response to their inquiries and complaints. These are all part of the loyalty business services that SMEs need to invest time, money, and energy in above everything else.

Customer loyalty arises from a customer believing they can completely trust your brand to deliver on its promise to them. It is important to note that the power of loyalty is a two-way street, with your business fulfilling its end by providing excellent products and service delivery while customers reciprocate with brand loyalty. 

Which of the Following Statements is True of Loyal Customers?

A. Loyal customers are not frequent buyers.

B. Loyal customers don't mind poor product services.

C. Loyal customers remain loyal no matter what.

D. Loyal customers are satisfied customers.

E. Loyal customers don't have any other choice.

The true statement is option "D" - "Loyal customers are satisfied customers."

The loyalty of your customers is earned when your business can meet their expectations for:

  • quality products and services
  • the sale of commodities at the right price
  • quick and convenient payment of items
  • rapid delivery of goods or service
  • courteous customer relations support

When customers' expectations are met, they will be satisfied, and more often than not, they will stay loyal to your brand. Customers that have a good experience with a brand would most likely remain loyal. 

These customers also serve as a point of reference for positive reviews and feedback, which prospective customers can rely on in making their purchasing decision.

In Conclusion

The power of loyalty is undoubtedly very important to the success or otherwise of any small business. Customer loyalty can improve your sales turnover and profit margin. With a thriving business, you can explore your brand's expansion and diversification options. 

Customer loyalty also drives even more traffic to your business and increases your customer conversion rate. What's more, a loyal customer is the best voice and influence for your business. 

Happy customers can directly or indirectly influence others to give your brand a trial and hopefully become ongoing customers for your business and become loyal in time. 

We believe that when your customers feel safe ordering from your business, they’ll love it so much they won’t even want to use another site. OrderEm's free loyalty program can help you attract and retain customers, which results in more sales. To know more, visit here

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