Any given customer can be satisfied with multiple suppliers of the same product or service. Possibly, but not likely. Clearly, price will always be a factor to some extent in terms of which supplier gets the business. Chances are good that price becomes less of an issue as loyalty increases. Satisfaction allows you to be in the game, so to speak.
Loyalty translates into repeat pruchases.
When a company is able to achieve some degree of customer loyalty among its customer base, the rate of customer leakage drops and the share of a given customer's business increases. Bear in mind that not every customer will feel the same sense of loyalty even with the same level of effort applied. But, this point notwithstanding, customer loyalty can clearly correlate with increased sales and increase profits. First, we need to briefly address loyalty as it relates to the product or service itself. Let's look at what we'll refer to as a commodity product.