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“Customer loyalty” exists when people in your market consistently and knowingly prefer to engage with you rather than with your competitors and like doing so. Their enduring preference for you makes them very valuable: they shop you with increasing frequency, explore more of your product line, purchase from you more frequently, and increase their total spend with you. Each of these activities drives revenue for you, but loyal customers also make your marketing dollars more effective because these customers engage with you proactively and advocate for you on social media and via direct word-of-mouth. Because loyalty drives both revenue and marketing efficiency, loyal customers are your most valuable ones.
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