8 Actionable Strategies to Win Customer Loyalty
⏱ Reading Time: 9 minutes
Customer loyalty is the key to keep your business alive and kicking. According to Frederick Reichheld of Bain and Company’s research, increasing customer retention rates by just 5 percent increases profits by 25 percent to 95 percent. This happens because loyal customers keep coming back to buy your products and services, which keeps the revenue flowing.Not only this, but they also tell their friends about the greatness of your products and services, thus, inspiring them to do business with you.
This way, loyal customers also help you gain new customers and support your company’s growth. So, increasing customer loyalty is one of the top priorities of business owners like you. But, as the task of earning customer loyalty is a challenging one, this blog is dedicated to helping make it a little simpler for you. It presents eight actionable strategies through which you can successfully win customer loyalty.
How to Win Customer Loyalty
Create a Customer Loyalty Program
A customer loyalty program is a marketing strategy that offers various kinds of rewards to the customers who make regular purchases from a brand. According to research, around 75 percent of consumers say that they favor companies that offer rewards. When you reward your customers for regular engagement with your brand, they feel happy and valued, motivating them to stay with your company. One of the most effective ways to earn customer loyalty is to create a customer loyalty program. Now, given below are some examples of innovative customer loyalty programs to help you create a good one for your customers as well.
Starbucks runs an attractive customer loyalty program. Every time a Starbucks Rewards member makes a purchase; he gets rewarded with a star. Once he collects nine stars, he can get a free drink of his choice. Isn’t it fascinating? Just like Starbucks, you can also think of a fantastic customer loyalty program idea and inspire your customers to come back to you over and over again.
Picture 1. Starbucks Rewards Membership
Tarte Cosmetics is an American company located in New York. Once you get the membership of team tarte, which is Tarte’s loyalty program’s name, you can earn points on every purchase you make. Later, you can receive exciting rewards for the points collected. Moreover, Tarte also offers reward points to its customers for posting their pictures and videos with Tarte products. This way, it uses its loyalty program to enhance social media engagement.
Picture 2. Team Tarte
IKEA is a Swedish multinational conglomerate that designs and sells ready to assemble furniture, kitchen appliances, home accessories, and other goods related to home services. This famous brand runs a captivating loyalty program for its customers. Once you become a member of the IKEA family, you can get attractive discounts on products, personalized rewards, numerous surprises, and access to various inspirational workshops. Isn’t it amazing?Who wouldn’t love to stay connected with a brand that offers such lucrative rewards for making purchases?
To know more about IKEA’s loyalty program, you can visit its family page and get interesting ideas regarding the creation of your own innovative customer loyalty program.
Picture 3. IKEA family
Improving Customer Experience
Customer experience largely determines whether your consumers will exhibit loyalty towards your brand. If your company offers an excellent customer experience, consumers will likely keep coming back. This implies that you can significantly increase the number of loyal customers by improving customer experience. Now, let’s discuss three practical ways to improve customer experience.
In a Temkin Group study, 79 percent of companies with engaged employees had a significantly better customer experience than those who didn’t. One primary reason supporting this finding is that engaged employees are happier and extremely devoted to their growth. As a result, they go every extra mile to ensure that all customers receive extraordinary services. To improve customer experience, one of the most important things you need to work on is to increase employee engagement in your organization.
Wish Your Customers a Happy Birthday
An effective way to enhance customer experience is to make your consumers feel special. You can do so by sending them personalized wishes through SMS or emails on their birthdays. But, to implement this technique, you’ll need to maintain a proper customer database.
Picture 4. Happy birthday to customers
Ask Your Customers About Their Experience
If you can derive feedback from your customers regarding their experience with you, it will be incredibly beneficial. It will help you identify your positive points and shortcomings and, thus, help you improve customer experience significantly.
Increase Teamwork Among Your Employees
Usually, the customers who keep coming back get emotionally connected to a particular salesperson who often serves them. When that specific salesperson leaves the company, they miss him or her a lot and are likely to visit your company less frequently. But, according to Dr. Heidi Gardner, the probability of losing a customer because a key salesperson left the company falls from 72 percent to 10 percent if more than one person serves the customer. This is because even if one salesperson leaves, the other will be there to make your loyal customers feel as comfortable as they used to feel earlier. It is crucial to increase teamwork among your employees to enhance customer loyalty. You should try to train your employees well and help them learn to serve them together.
Interact With Your Customers on Social Media
To keep your customers coming back, it is crucial to have regular interactions. By doing so, you can keep them reminded about your business, products, and services, which stimulates them to keep coming back. Social media is one of the best platforms for regular interactions with consumers.
According to a study conducted by Forbes, 62 percent of millennials say that if a brand engages with them on social networks, they are more likely to become a loyal customer. You can post different social media things like funny memes, information regarding new products, and global issues. You should try to design these posts so that your customers feel prompted to reply to them. So, regular social media interactions can help you stay connected with your customers and earn their loyalty.
Derive Customer Feedback
Customer loyalty is directly related to how happy your customers are with you. If they are pleased and satisfied with your products and services, they’ll keep coming back. Now, if you wonder, how can you know if your customers are happy with you or not? The answer is simple, just derive regular customer feedback. It will help you know about any shortcomings in your products and services, making your customers feel unhappy. You can then take actionable steps to overcome those shortcomings and keep your customers happy. So, you should try to derive regular customer feedback.
Shoulder your Corporate Social Responsibility Innovatively and Sincerely
There is proper evidence that Corporate Social Responsibility can be more effective than advertising in attracting interest from customers. It works wonders in earning loyalty from customers. When consumers recognize that a particular brand is doing great things for the environment, society, and the planet, they are naturally more drawn towards it. The positive feelings that they develop towards the brand stimulate them to make regular purchases from it and become contributors to its Corporate Social Responsibility initiatives.
One of the most effective strategies to gain customer loyalty is to shoulder your Corporate Social Responsibility innovatively and sincerely. Further, Google, Apple, and Toms are examples of companies widely known for their excellent CSR initiatives. You can quickly get detailed insights about their CSR initiatives from the internet and think of some ideas to create an innovative CSR plan for your company too.
Create Personalized Offers for Your Customers
Creating personalized offers for your loyal customers is a great way to keep them loyal to your company. Imagine how your customers will feel if you give them personalized offers and discounts on the purchases they make frequently? Won’t they feel delighted and valued? They will. So, you should try to keep a complete database of your loyal customers’ product preferences and then create personalized offers for them.
For example, if a customer buys the same products from your company regularly, you can offer them some special discount on the combined shopping of those products once in a while. Such gestures will make them feel happy and inspire them to return.
Make Customer Convenience a Priority
Comfort and convenience are two real game-changers for earning customer loyalty. If you can make the shopping experience comfortable and convenient for your customers, they’ll keep coming back. After all, comfort is one of our top priorities in life. Now, here are some ideas to help you make things more convenient for your customers.
Making the Billing Process Simpler
Long queues at the billing counter can make your customers feel uncomfortable. So, you should try to make the billing process more uncomplicated with multiple billing counters.
Adding Suitable Appliances to Make Your Customers Feel Comfortable while Shopping During Different Seasons
You can add appliances like air conditioners and heaters to your company to make your customers feel comfortable during different seasons and weather conditions.
Helping Customers Carry Their Stuff
If you can, you should try to help your customers carry their stuff to their vehicles, especially if it is heavy. This will make them feel excellent and increase their chances of coming back.
Loyal customers are true blessings for a company. They give your business a sense of security and help expand. You should always try to offer the best services to your customers and earn their loyalty. The different strategies mentioned above are also dedicated to helping you with the same. Now, wishing you All the Best, and may your business grow and glow!
Jessica Robinson is a woman of words, who brings with her an experience of a decade. She is an educational writer and has even penned down many motivational blogs for various websites. She spills the magic of her thoughts through her blog ‘The Speaking Polymath’. In this blog, she makes the reader experience her management proficiency along with her skill to resolve matters of global importance.
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