How can CRM be used for improving Customer Loyalty?


Customer loyalty can be earned by creating scenarios in which the customers are satisfied by their brand, quality, price, customer attention and after sales and services. It also varies from industry to industry and company to company and customer requirements. To acquire a new customer, it costs a business about 5-25X more than it does to sell to an existing customer not only this but existing customers spend 67% more than new customers.

In short, customer loyalty really pays off and customer loyalty CRM programs pay for themselves and so companies must be focused on such programs.

Loyalty CRM is a key initiative in building customer loyalty. In light of statistics like these, businesses need to think about what they are doing to retain their customers. 82% of U.S. adults say they’re loyal to brands, and if you are amongst more than half of the brands surveyed by (Gartner)  L2, your company has already implemented a loyalty program.

In this article, we will delve into everything in which a company would like to know about customer loyalty:

What it is,  Why it is important and how CRM is improving customer loyalty?

Let’s understand-

Customer loyalty can be defined by the customer’s willingness to buy a brand again and again and it is the result of positive customer satisfaction and the value of the products or services the customer gets from the transaction.

When you have a loyal customer, they don’t seek out competitors, and when approached by competitors, they’re not interested. It also means that your customers are willing to work with your business to build on past successes and to overcome any weaknesses. It doesn’t matter if you need to raise your price (to some extent) or reduce your product offerings, as the customer will remain with you.


Many businesses focus on attracting new customers as a revenue stream, but the most obvious predictable source of revenue comes from existing customers. The average spend of an existing customer can be up to 67% more than a new one.

Acquiring new customers is expensive. In fact, acquiring a new customer can be five to ten times the cost of retaining an existing one.

According to research by The Gartner Group, 20% of a company’s existing customers can generate 80% of a business’ profits. If we are given even a factor of 50% for being conservative, then the key for any business to survive and grow is beyond just acquiring new customers. It’s just as or even more important to build a sustainable sales stream of existing customers.


Customer Relationship Management Software gives the user that greater edge to accomplish their customer loyalty and retention targets for years to come.

With its features and functionality, it definitely expedites your manual efforts and helps you attain more than just happy customers.

It is easier to up-sell and cross-sell to loyal customers – Selling to existing customers is something completely different than cultivating new leads. You don’t need to establish your reputation, your skills or the quality of your products. The customer is already convinced.

Existing customers are more open to hearing about how complementary products can help them to improve or expand the use of their current products and that can be easily handled by using CRM software.

For an existing customer, you can easily tell them about other useful products or services just shows that you understand their needs, their interests and want them to be successful and you can easily cross-sell them by sending Emails or notifications on mobile for a new product,  services, discounts, offers, etc.

Reward to every loyal customer – A good loyalty program has the power to transform a business into a customer-centric profit machine. With customers becoming more and more are demanding and the competition getting more intense, it’s only right that you reward and try to keep the customers who have chosen you.

With the help of CRM, you can easily find out your loyal customers list and you can easily filter them as per their spending power and reward them in terms of reward points and by running other client engagement programs like- referrals.

CRM helps to loyal customers to become ambassadors for your brand – As social beings, we all have a tendency to rely on reviews and endorsements coming from people we already know and with whom we share values and other group characteristics.

They are also more likely to share their positive experiences and make recommendations to their friends. They love your brand, they speak about your brand and as humans, and we are more influenced by people we are familiar with.

CRM helps companies in sending notifications to their customers who are already connected with the social platforms for a discount, referral policies and new event or product are launching in the market.

It costs more to acquire new customers – To find and acquire new customers, companies need to advertise, encourage potential customers with discounts, educate them on the various products, and convince them of the company’s noble brand values.

In general, these are quite costly processes for a company before the customer even begins to generate some revenue.

By using CRM, Companies can easily focus on loyal customers and can easily retain them by serving good services to them. Therefore, increased customer loyalty leads to greatly reduced costs to acquire new customers.

Gathering quality feedback – CRM functionality allows the user to leave good/bad feedback. People and their needs evolve, just as technology and everything else does. Therefore, the vast majority of healthy companies focus on business and product development. This is where your loyal customers can play a central role. In contrast, a new customer often displays a certain indifference to negative customer experience.

These above are just a few examples of how is CRM helping to improve customer loyalty.  If you are looking to implement loyalty CRM solution to your business then you are at the right place and you can talk to our experts. Our expert team of CRM Developers will understand your unique business requirement and will suggest you to which CRM solution (Sugar, Suite, Salesforce) you should adopt and why? We also understand the need for two important factors – Customisation and Integration with existing systems and we help our clients in both.

Advanz101 Business systems inc. has more than 10 years of experience in CRM development, Implementation, and Customization Solutions. We have done many projects so far for our clients from different countries like- United States of America, United Arab Emirates, Canada, Australia, Greenland, Bermuda and many more. For more details, you can write to us as @


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