Research found 65% of a company’s business comes from existing customers.
This proves how essential cultivating customer loyalty is for companies, big and small. Luckily, there are many ways to do this that doesn’t involve an expensive marketing campaign.
If you’re eager to improve customer loyalty but aren’t sure where to begin, you’ve come to the right place. Here’s everything you need to know.
Why Is Customer Loyalty Important?
Improving customer loyalty comes with many benefits. For instance, when customers are more loyal to your brand then they’re more likely to recommend you to others.
This means when you increase customer loyalty, you increase the lifetime value of the customer for your business. Plus, customer loyalty helps you improve your company’s brand image so when you’ve earned their trust, customers are more likely to share positive experiences.
Further, increasing customer loyalty helps you stand out against competitors. Although you have similar products, if you have better customer loyalty, then your items will have a higher buying priority among customers, new and old.
The 7 Best Ways to Increase Customer Loyalty
We’ve covered the benefits of improving customer loyalty and now it’s important to create a plan. When you create a strong strategy to prioritize customer loyalty, you will reap the many benefits.
Consider these, for example:
- Provide Great Customer Service
A surefire to improve customer loyalty is to make customers a priority through excellent customer service.
Customers consider every interaction they have with your employees whether they’re waiting in line, making a return, or asking questions on Facebook.
Because of this, your in-store and online staff must be readily accessible and able to solve problems in a timely manner especially as 48% of consumers expect a response to social media questions and complaints within 24-hours.
You should also leverage customers’ complaints to your advantage. Your employees will hear their pain points and learn important ways to improve customer satisfaction so be proactive and adopt this.
Your business should use a chatbot for live chat to improve response rates and give customers access 24/7. As a result, you’ll boost customer loyalty and prevent negative word-of-mouth.
- Launch a Loyalty and Reward Program
Create a loyalty program where you reward customers from returning. For instance, launch a simple points system where customers earn points with each purchase which is used for a reward.
You can also create a tier system where you start with an initial reward and increase this over time. Your business can also enjoy loyalty program benefits by organizing a prize draw for your most retentive customers where they have a chance to win something big.
- Launch an Email Campaign
Collect emails through Facebook ads or ask customers to enter their email in exchange for a free resource like an eBook. Create a mailing list so you can contact your customers but avoid spamming them daily.
Instead, send thank you or welcome emails and inform them of a product launch. It’s important you add value to their lives whether it’s an update of industry-related news or notifying customers that a product they’re interested in is out of stock.
You should also send personalized emails with birthday greetings with a discount coupon to improve customer loyalty.
- Consider Different Payment Plans
If your business is seasonal then offer different payment plans to benefit you and customers. Let’s say you sell wedding dresses, then you’ll release most of your sales during summer or spring when weddings mostly occur.
You could offer a payment plan where brides could shop in winter and pay a little each month rather than paying all at once. This is a fantastic way to improve customer loyalty because they’ll likely refer your business to others because it gives them manageable monthly payments, a dream when it comes to expensive events.
- Ask For Regular Customer Feedback
Asking customers for their honest feedback shows you care about their opinion and that you want to make products as best as possible.
Whenever a customer makes a purchase, send an automated survey asking them for feedback through a questionnaire or an online survey.
Communicating with your customers gives you valuable information that you can turn into valuable content and inspiration for marketing campaigns. This will keep customers happy because you’re making the effort to listen to their needs and stories.
- Cultivate an Online Community
Alongside sales, you should focus on building an engaged online community. Choose the most relevant social media channels for your business so if you’re a clothing company, a visual platform like Instagram is the most effective way to generate interest.
You should also hold giveaways to attract customers and encourage them to engage with your business.
- Follow the Subscription Model
One of the most effective ways to encourage customer retention and loyalty is by introducing a subscription model for your business.
The difficult part is getting a customer but once you have them, it’s easy to entice them to purchase your products. For instance, you can follow the surprise subscription model when you sell products that are normally bought once like a swimsuit.
You could then send a “surprise box” to customers who have subscribed and add products that are similar to the one they have already purchased or whichever category they choose.
That’s How to Increase Customer Loyalty
Now you know how to cultivate customer loyalty to ensure your clients return. It’s important to create a mailing list so you can update them with promotions and updates, alongside a reward system so they have a reason to return.
Remember to always be attentive and listen to your customers so they know you care. Good luck!
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