Marketing and growth are like Siamese twins. None of them can live without each other. Can we say the same about loyalty and growth? Let's look at the concept of loyalty and some of the mistakes companies make when trying to measure loyalty.

online listeningLoyalty can be defined as a person's willingness to make an investment or make a personal sacrifice in order to strengthen a relationship. For a customer this can mean, for example, remaining loyal to a provider who treats him well and gives him added value in the long term, even though he does not offer the lowest price.

However, customer loyalty is about much more than repeat purchases. Even someone who buys from the same company over and over is not necessarily loyal, but does so because of external circumstances, for purely practical reasons. For example, someone always books with the same airline just because they offer the most flights to the desired destination). Conversely, a loyal customer may no longer make repeat purchases because there is less demand for the product or service. After a certain point in time, all parents will no longer buy diapers for their children, regardless of whether they are loyal to the manufacturer or not.

However, when a customer speaks positively about a company and recommends it to friends, family, and colleagues, it is one of the best indicators of loyalty. He not only states that he himself has received economic value from a company, but also puts his own reputation at risk through personal recommendation. He only makes this personal sacrifice because he has a strong loyalty to the company. The tendency to recommend loyal customers - free of charge for the company - is particularly beneficial for a growing company, especially if it operates in a mature industry. Here it is very difficult to grow profitably due to the high marketing costs for advertising and other promotions for the acquisition of new customers.

In fact, in the long run, the key to profitable growth could be a company's ability to turn its loyal customers into an effective marketing department.