Customer loyalty is a marker of a good customer experience. A loyal customer implies a happy customer.
A report on CX trends by InMoment shows that around 60% of customers are more likely to shop from companies they prefer and 80% of customers admit that their love for a brand is stimulated by a gradual process and multitude of factors than an instant appeal.
What does this mean? Customer loyalty is no love at first sight. It has to be built and fostered by companies step by step by getting customers to like you and providing a good number of reasons to stick with you. Here is all you need to know about customer loyalty and ways to boost it.
What is Customer loyalty?
Customer loyalty portrays a customer’s preference and tendency to purchase products from your business repeatedly. Loyalty arises when businesses provide an exceptional experience to customers that make them feel valued, respected, and treated well. You can identify loyal customers through how they engage with your brand.
Customer loyalty is determined by the efficient functionality of the product as well as by how you treat customers throughout the buying journey. So, having a remarkable product that fulfills customers’ needs to the optimum level is not sufficient. Loyalty is also brought about by how customers perceive your brand in terms of authenticity, responsibility, courteous delivery, etc.
How to improve Customer Loyalty?
1. Build strong relationships with customers
Today, every business has a fair share of competitors offering the same product/service, making it difficult for them to stand out through product differentiation. This is why it’s more important to focus on strengthening the relationship with customers. Moreover, building a good rapport with customers is central to the growth of loyalty. How can you do it?
- Maintain transparency and authenticity when engaging in business with them
- Stay true to your promises, live up to customer expectations with consistent service
- Omnichannel presence and be ready to assist your customers around the clock
- Greet them and offer courteous service
2. Build a strong loyalty program
Designing a rewarding loyalty program is a great way to ensure that customers stick with you for a long time. By entitling your loyal customers to exclusive benefits and rewards, you build a sense of solidarity and strong rapport with customers. Customers feel acknowledged and special when a brand takes special efforts to provide a good customer experience. It encourages them to do business with you on an ongoing basis and refer the brands to people they know.
Your loyalty program can include,
- Privilege membership cards that provide discounted offers
- Punch card systems that keep track of the number of times customers purchase your product(s) and reward them with a free good after, say, the 10th purchase
- Customers can purchase new products before their public release
- Coupons to redeem offers or gifts, especially during seasonal months
- Providing free or discounted offers on the customer’s birthday
- Point system where every purchase adds points to the customer which can be redeemed at the end of the year
3. Offer personalized service
Acknowledging that every customer is special is crucial to building customer loyalty. This is where the role of customized service comes into play. If a brand is aware of the specific requirements and expectations of a customer beforehand, it is possible to tailor the service to fit their needs. Customers prefer brands that align with their preferences rather than them having to comply with a standard model. Personalization drives customer satisfaction higher which eventually leads to loyalty.
But, how do you do that?
Recognize your regular client base and gather important information about them based on the transactions they perform with you. Then utilize these to provide recommendations of products/services, discounts, and promotional offers available. Moreover, you can also alter your marketing campaigns like email newsletters with relevant content that will appeal to each client.
4. Value their feedback
No business is perfect which is why feedback from first-hand users of the product is so important to improve. Adopt a practice of follow-up on customers and receive their genuine reviews on the product. Ask for their suggestions on improving the service further and show how how much you appreciate their feedback!
You can use positive reviews to expand your customer base by letting potential clients know about the credibility of your business. However, you should also lend an ear to negative customer reviews or complaints and try to resolve them. Customers are more inclined to be with a brand that’s ready to listen and assist them even after purchasing the product. If you have resolved any issue based on the feedback you have received, make it a point to let customers know about it. This is how you build loyalty with the support of customers themselves.
If you haven’t focused on improving customer loyalty until now, think again. If you don’t put enough effort into retaining customers who do business with you, and give them a reason to shop again, your brand will be no more than an ordinary one. Clients won’t hesitate to switch between alternative brands unless you make it a point to stand out from the rest.
We hope our suggestions will help you to create an experience that customers would love to relive again and again!