{"id":1682,"date":"2020-01-09T05:05:59","date_gmt":"2020-01-09T05:05:59","guid":{"rendered":"http:\/\/webdesigninhoustontexas.com\/silkcards_blogs\/?p=1682"},"modified":"2023-09-06T09:52:24","modified_gmt":"2023-09-06T16:52:24","slug":"one-huge-difference-between-customer-loyalty-and-customer-retention","status":"publish","type":"post","link":"https:\/\/silkcards.com\/blog\/news\/one-huge-difference-between-customer-loyalty-and-customer-retention\/","title":{"rendered":"One Huge Difference Between Customer Loyalty and Customer Retention \u2013 SilkCards"},"content":{"rendered":"

The primary <\/span>difference between customer loyalty and customer retention<\/span> is that customer loyalty focuses on individualized performance of each customer. Customer retention focuses on growth.<\/span><\/p>\n

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Customer retention, on the other hand, focuses on the negative and is about mitigating decline. In effect, this practice is all about the preservation of the customer instead of growth: You see the customer with one foot out the door, and then you take action to retain that customer\u2019s business.<\/span><\/p>\n

Related: VIP, Loyalty, and Rewards! The Difference Between Customer Retention Programs<\/a><\/strong><\/p>\n

Customer Loyalty<\/strong><\/h2>\n

The customer loyalty score of each individual customer includes details such as how often a particular customer made a purchase, how much an individual customer purchases, how often the customer visits your site or when the customer made his or her last purchase from your website. Obviously, the customer loyalty score differs from one customer to the next.<\/span><\/p>\n

It is imperative to understand, as INC contributing editor Geoffrey James points out, \u201cThere are few things more valuable (or more rare) than customer loyalty. <\/span>Customer loyalty cannot be bought<\/span><\/a>. It must be earned\u2026\u201d<\/span><\/p>\n

Is it possible for your business to stand out, to make customer loyalty work for you?<\/span><\/h3>\n

Take the example of Green Hills Farms, a small family grocery store in New York that successfully competes with large-scale chain grocery stores, leaving large chains wondering about Green Hill\u2019s secrets.<\/span><\/p>\n

Green Hill decided to \u201c<\/span>Stop helping the thieves and start rewarding its loyal customers<\/span><\/a>.\u201d Those customers get personalized service, a free fresh turkey for Thanksgiving, a free live Christmas tree and many personalized rewards for loyalty throughout the year. Focusing on your most loyal customers provides a strategy to save in the long run, saving all those dollars marketing to the \u201cthieves\u201d of the business who you might see once a year.<\/span><\/p>\n

Strengthening customer relationships by offering something of unique value gives you a distinct edge over competitors. Determine the customer loyalty programs and incentives that work best for your customers to grow customer loyalty.<\/span><\/p>\n

Related: Perfect Your Restaurant By Making the Most From Customer Feedback<\/a><\/strong><\/p>\n

Customer Retention<\/strong><\/h2>\n

While customer retention revolves around the customer who is on the way out, all is not yet lost. It is crucial to understand that customer retention rates measures the behaviors of your overall customer population compared with the individualized performance measured in customer loyalty.<\/span><\/p>\n