Think about your last purchase for a moment. Where did you shop? Chances are it was with a business you’re familiar with. Businesses are always looking for ways to drive customer loyalty, and customers respond accordingly.
More than 80 percent of Americans will tell you they are loyal to at least one brand. The average US consumer is enrolled in 18 loyalty programs with a 50 percent active participation rate. If you’re going to shop, it might as well be with a company you’re familiar with, that you trust, and that might just give you incentives to do so.
While that’s good news for consumers, it’s also good news for businesses. Would you spend some of your marketing dollars there if you knew how vital incentivization is for future growth? One study suggests that increasing customer retention rates by just 5 percent can increase profits by 25 to 95 percent.
There are many reasons to do so, but where do you start? Like everything in marketing, it begins with a plan.
The Importance of Customer Loyalty
Customer loyalty is more than getting the first sale. Instead, it’s rooted in trust and satisfaction. It’s about building an emotional connection over time so customers continue buying from you and referring you to their friends.
Yes, you can do this through incentivization. You’ll see it at your favorite coffee shop or quick casual restaurant, where you get a drink or meal free after a certain number of purchases or dollars spent. But it’s more than that. It’s about understanding your customer’s journey and then, at pivotal points along the path, satisfying the customer in unique ways based on their wants and needs.
Most businesses stumble over this process because they spend time bringing in new business. But when you focus on ways to drive customer loyalty, specifically throughout the customer journey, you’ll provide more meaningful and sustainable interactions with each and every customer.
It Starts with Customer Service
Customer loyalty is driven by exceptional customer service. This doesn’t mean you have to increase your sales team or hire more customer service representatives. Instead, it’s about building relationships and exceeding customer expectations at every touchpoint. Even the littlest interactions can have a significant impact on customer loyalty.
How do you do this? By standing out from your competition. Users are looking for something unique to follow. They want to feel like they identify with a brand, like the brand “gets” them. Your job is to show them that in the content you produce. Then, use that content across your channels to prove your difference.
Share it in a way that makes sense for your brand and your audience. An informative blog to read. An inspirational video. A podcast where you share your ideas on social media. Whatever you do, make sure it’s an experience people are happy to engage in.
Personalization to the Deepest Levels
We all desire to feel like we’re not just a number and that we mean something in a relationship. Top brands get this and focus on personalization at every touchpoint.
What does this mean? It starts by developing your customer avatars then giving them exclusive content that speaks directly to their needs. You can define this by asking questions:
- What are their pain points when they start searching for a brand?
- What are they looking for in this product or service?
- What questions do they have before they buy?
- How fast do they finalize their decision?
- What information do they need to use the product or service effectively?
- What would make this experience even better?
The list of questions is endless. Once you dive into this way of thinking, every question will lead to a new opportunity to get closer to your customer. And when they feel good about the experience, they’re more likely to give you their loyalty.
You can also use technology at different points to automate the process. This is a win-win for both of you. Your customer will like being able to move seamlessly through the process, while you’ll create a system that works 24/7 without human intervention. Some areas in which to use technology include:
- Simplifying the payment process
- Recommendations inside the shopping cart
- Making search easier to use
- Adding chatbots
- Tracking to see where users spend their time and sending content based on their interests
Again, the possibilities are truly infinite. This is where digital marketing experts can help you craft a system that builds customer loyalty into every campaign you offer. Think long-term—not just how quickly you can bring in profits.
Building Loyalty Through Transparency
When businesses start thinking of ways to bring customer loyalty into their business model, they often think of giveaways before considering easy fixes to their core systems. Transparency is fundamental when building trust and loyalty. The more open you are about your operations, the easier customers can resonate with your brand.
Of course, this is more than just being honest. It’s always about “me” for customers: “What’s in it for me?” Customers want to do business with brands with the same morals and ethics and that approach life similarly.
Once again, it comes down to communication. How are your products made? What ingredients do you use? What certifications do you hold? Any way you can communicate your commitment to ethical standards will be appreciated.
It’s also about listening to what they have to say. Luckily, social media makes that easy. It’s where you can foster appreciation for the world you live in, together.
Driving Customer Loyalty
We talk about ways to drive customer loyalty throughout this post, but ultimately, it’s not something you can do—instead, it’s about what you create. Do you care enough to build for your customers as opposed to profits? Do you believe your company has what it takes to change the world? We’re not talking massive changes; you don’t have to create the next Google. Your desire can be to change a handful of people’s lives.
When you do that, when you build that into your core systems, that’s when you’ll feel good about what you do and build a more loyal following. Isn’t that what customer loyalty is really all about?
