7 minute read
How to Increase Your Business's Customer Loyalty
Updated on April 12, 2022 by David Wachs
Every company should prioritize customer loyalty, regardless of its size. Customers who return spend up to 67% more than newcomers. This helps build a business’ authority and reputation. Furthermore, recruiting new clients is nearly ten times more expensive than retaining existing ones.
Consider using a few methods mentioned in this article if you're searching for practical ways to maintain and increase customer loyalty.
What is customer loyalty?
In essence, customer loyalty refers to a customer's intentions to engage in and purchase your product or service again in the future. Therefore, customer loyalty is important for increasing the lifespan value of current customers, which can account for the majority of your continuous revenue. It even contributes to the acquisition of new clients because satisfied customers are more willing to suggest your product or service to someone else.
Customer loyalty is not about a single product or a company's service - it’s a set of great experiences that bring a sense of trust which takes time to build. This doesn't imply that each interaction must be flawless. Customer loyalty can endure a few negatives, but too many will weaken the bond.
The most loyal usually:
- Acknowledge your product or brand
- Consider your offer to be of high value
- Associate with your product on a deeper level
Now that we’ve seen what customer loyalty actually is and how it impacts brand image and value, let’s move on to some numbers that illustrate its importance.
Quick facts about customer loyalty
Customer loyalty is vital for a variety of reasons. In this part of the article, you’ll find some intriguing customer loyalty statistics to get you started:
Customers who return spend more than new ones
Current consumers are likely to spend more money than new buyers since they already trust your company's products or services. In addition, the amount they spend tends to increase the longer they do business with your company.
Customers who are loyal to you convert at a higher rate
Regular clients convert at a rate of 60 to 70% on average, whereas new customers convert at a rate of 5% to 20%. In other terms, loyal clients that visit your site provide you with an added benefit.
Customer loyalty increases profit
The more devoted your customers are, the higher your profits will be. In fact, only a 5% improvement in client retention could boost profitability by 25 percent to 95 percent.
Customer retention is less expensive than customer acquisition
While attracting new consumers is excellent, it can be costly - about five times more than keeping existing ones. Retaining loyal consumers is far more cost-effective because they generate better earnings at a lower cost.
Strategies to increase your business's customer loyalty
Successful business owners understand that keeping good ongoing relationships with clients ensures a steady revenue stream. In addition, customers are motivated to buy and stay faithful when they have a good relationship with a company. Take a look at these six ideas for increasing customer loyalty at your company.
Prioritize client service
According to a Microsoft survey, customer service is vital to 90% of consumers worldwide when choosing a brand.
Outstanding client service is the key if you want loyal consumers. The customer evaluates every interaction with your team. For example, customers keep a record while chatting with agents, reporting a damaged product, asking questions on social media, or collaborating with a salesperson to select the ideal product or service.
That indicates your employees must be pleasant, efficient, and professional; your organization should aim to reply to questions quickly, especially on social media, and your customer service crew should be available and capable of quickly resolving problems.
According to research, customers like assistance via social networks, and they anticipate a speedy response. For example, on social media, 42% of customers want a reply within an hour, while another 32% expect a response within 30 minutes.
Reward your customers
Rewarding clients for their loyalty is one of the most effective methods to keep them returning. Create a customer loyalty program that gives customers coupons, gifts, and promotional deals. According to Forbes, 71% of consumers who participate in loyalty programs consider membership an essential element of their brand relationships.
What makes loyalty programs so effective? Clients, for starters, want to be recognized. After all, individuals have the choice of where they invest their time and money, and they've picked you. Since that is no minor act, you should reward them with a loyalty program.
Meet your customers’ needs
If you make your customers' lives simpler, they'll keep coming back. So consider how you can make the customer experience better by making it easier or faster. For example, consider shortening your checkout procedure so clients can get in and out quickly and reply to questions on social media rather than having them go through an automated maze of selections over the phone.
As the pandemic continues, many people are rethinking their shopping habits. Online channels and choices that were once considered a luxury are now considered a need. 39% of clients said they are less likely to shop in stores. In addition, 30% of millennials stated they like to buy online more regularly. Consider providing delivery and pickup alternatives to meet customers where they are.
Engage with customers regularly
If you only interact with your customers when you want them to buy something, you'll have difficulty keeping them for the long term. Instead, consider how you could assist your consumers in solving problems and educating them on how to get the most out of your goods and services.
You can show your knowledge and develop trust by educating your customers. According to a study by Conductor, customers are 131% more likely to purchase from companies that educate them on its products or services.
Develop a blog to give suggestions regarding your products, and also send an email with all of that advice to clients who just purchased one of your tools. When done correctly, such useful content can show your concern for your clients and make them feel unique.
Another strategy to keep your company in front of clients' minds is to show them how much you care by giving them branded stuff relevant to your industry.
For example, if you're in the SaaS industry, team up with another company to give discounts or free trials for some software tools. You can offer them to individuals who’ve been using your services for an extended period of time or the first group of consumers who upgrade their membership status.
The goal is to develop ways to keep building and nurturing relationships with your clients so that loyalty and advocacy can grow over time.
Ask customers for feedback
One of the best ways to build stronger relationships with clients is by asking how they feel about your brand. You want to include customers in your work process and show them that you value their opinion and are willing to act on it. This is particularly important for your regular customers who often interact with your company.
There are different ways in which you can collect customer feedback. For instance, you can send out short surveys or reach out to customers directly.
The goal is to show that you care about people's impressions of your brand. Moreover, you are willing to work on improving the experience and providing even better service.
This is the recipe for keeping customers loyal to your brand. People are much more likely to keep supporting your company, even during challenging times. The more space you provide for people to share feedback, the easier it will be to form strong bonds with them.
In the end, don’t forget to express gratitude to your clients. You can consider custom thank you cards for business, to show you appreciate people taking time to share feedback with you.
Personalize your approach
If you want to strengthen relationships with your customers, you have to approach each person individually. Do your best to customize your messages as much as possible and avoid using templates.
This can be quite time-consuming, but the results will pay off. Studies show that 72% of people will engage with personalized messages, while 52% of consumers may ignore a message that is general.
Therefore, your goal is to come up with strategies that will engage your customers and allow you to connect with them on a personal level. Once you achieve this, you’ll be able to understand people better and improve their individual experience with your brand. As a reward, these customers will stay loyal to your company in the long run.
In today's business world, it's not possible to overestimate the value of customer loyalty. Loyal consumers are people who understand that a brand is more than just a collection of products.
If you implement these tips, your customers will have a truly unforgettable experience. In addition, making a good first impression will help you develop and strengthen client loyalty by making satisfied customers, spreading positive reviews, and eventually creating and increasing customer loyalty.