Do you think the time and effort spent keeping loyal customers happy limits or aids new product development?
Customer loyalty is extremely useful for any business. Loyal customers continue their business with the same company and also aids in bringing new customers to the company. They are the best marketing a company can get. Thus keeping them happy should be a goal for the company. It is to be noted that keeping these customers happy may cost the company some money and resources, maybe in the form of discounts, free leisure trips, gifts, etc. But such resources and efforts are paid back manyfold by the business repeat customers bring in. Such loyal customers also help in new product development because they can act as free testers for new products and also provide valuable feedback for features they would like to see in new products, etc. Generally, testers cost money and so does feedback. There are a number of companies that can help provide feedback and testing for a certain fee. Loyal customers provide all this for free and their feedback is also relatively more important, because they are also likely to be the among the first customers of new products.