Why is customer loyalty important?

Customer loyalty is something all companies should aspire to simply by virtue of their existence: The point of starting a for-profit company is to attract and keep happy customers who buy your products to drive revenue.

Customers convert and spend more time and money with the brands they're loyal to. These customers also tell their friends and colleagues about those brands, too which drives referral traffic and word-of-mouth marketing.

Customer loyalty also fosters a strong sense of trust between your brand and customers — when customers choose to frequently return to your company, the value they're getting out of the relationship outweighs the potential benefits they'd get from one of your competitors.

Since we know that it costs more to acquire a new customer than to retain an existing customer, the prospect of mobilizing and activating your loyal customers to recruit new ones — simply by evangelizing a brand — should excite marketers, salespeople, and customer success managers.

But how do you do it? How do you make happy, satisfied customers into loyal brand evangelists?

How do you use positive Yelp reviews, glowing tweets, and Instagram mentions to propel your brand's growth?

1. Use a tier system to reward initial loyalty and encourage more purchases.

2. Charge an upfront fee for VIP benefits.

3. Structure non-monetary programs around your customers' values.

4. Partner with another company to provide all-inclusive offers.

5. Make a game out of it.

6. Be as generous as your customers.

7. Scratch the program completely.

8. Build a useful community for your customers.