7 signs to be sure about a loyal customer


If you are an entrepreneur, you want customer loyalty and steady relationship with people. Statistics show that 80% of the business comes from 20% of loyal base customers. The cost of bringing a new customer to the same loyalty of the old is 16x more.

Cost does not matter to them

When customers buy your product they do it for the quality of service you provide. How do you know when you have a loyal customer? When the price is never mentioned or discussed. On an average loyal customer are worth up to 10x as much as their initial buy.

When they support you in public

A loyal customer will never accept your brand’s criticism in public. He will always debate or justify your brand image in comparison to other products.

This could happen on social media or by word of mouth. Companies should focus more on Loyalty programs. It increases revenue by 5-10%.

Providing testimonials or reviews

When providing reviews for your product, there are chances that they will be your loyal customers. If you find such people talking about your brand, please reply, they will be happy. Keep asking for their guided feedback. As per Sitel, 15% of the young generation prefer social media to provide customer feedback.

They put complete trust in your brand

A loyal customer will not question your move and put complete trust in you. There is not renewal hesitation and they know whatever you are doing is for the benefit of the company. The probability of selling a product to a loyal customer is 60-70% higher as compared with a new customer.

They are the most honest people

They will not hesitate to open up and provide you with guidance whenever needed. They will work with the company to provide a good relationship and quality product across. When things become tough, instead of running away they will provide feedback.

Company’s image relates to their identity

When customers are so loyal to the company’s services, their image becomes the brand identity of the company. The company’s story becomes our own and an inseparable part of us. As per American Express, an active social customer will share their good experience with average 42 people.  Whereas a bad experience will will be shared 53 people on an average. 

The RFM Value

The company’s RFM values can reveal the most loyal customers. RFM stands for Recency, Frequency, and Monetary value. The best customers will be making the most recent buy and spend the most amount of time with you. Lowering the customer churn rate by 5% can increase the profitability by 25-125%.


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