Customer loyalty refers to the dedication of a customer towards buying products or services from a specific business. Companies should concentrate their efforts on customer loyalty as it is one of the main drivers of business growth.
Research showed that loyal customers spend 67% more compared to new ones. One of the great examples of businesses that benefit a lot from customer loyalty is Apple. Its customers are lining up weeks before the official release of a new iPhone. For example, prior to the release of iPhone X, Apple scored a 92% loyalty rate.
Customers play a vital role in Apple’s growth. They are the company’ advocates and are readily available to promote its products and protect the image of the company anytime anywhere. Not only Apple but many big companies realize the importance of customer loyalty and concentrate all their efforts on strengthening the bond between the business and customer even more.
Studies show that customers are more likely than ever to jump to competitors when they become dissatisfied with their current services, no matter how long they may have had a relationship with a company. Research from Vision Critical has found that 42% of Americans will stop shopping with a brand after only two bad experiences, making consistent high-quality customer experience critical in customer retention. While that lack of loyalty may mean ample opportunities for companies looking to expand their clientele, Harvard Business Review research shows that it costs approximately seven times more to gain a new customer than it does to retain one. As such, cultivating customer loyalty has both reputational and financial benefits.
Now, it’s time to drive the tips for maintain the customer loyalty in this era.
Always be on the lookout for reviews and feedback on social media. 50% of customers recommend the business to others, from which 14% of them express their feelings, both negative and positive, on social media.
It is important when the company receives the feedback. If something goes wrong, ask for details and do your best to make it up for the customer. If the feedback is positive, go beyond traditional thank you comments and ask them more about their personal thoughts about the product. Such actions will show as a genuine company carrying for its clients and shall contribute to improving the customer loyalty.
Make sure to reward most loyal customers on social media by sending small souvenirs and motivating them to post it. This will strengthen the bond between the brand and the clients while serving as a good PR to other potential customers.
Paid loyalty has the potential to increase engagement and spending, as demonstrated by the success. It is the act of customers paying for the privilege and exclusivity of joining a brand’s loyalty program, just to mention one, of Amazon Prime.
Brands such as YouTube have capitalized on this through offering customers a membership called YouTube Premium at the cost of $128 annually in return for a plus priority of video without advertisement. This approach appeals to customer’s emotional side through the exclusivity element by being part of a members-only ‘Premium’.
To sum up, for achieving better customer loyalty in the digital age, one has to be open to implementing innovative solutions but many managers are uncertain of innovations.
Sometimes it means taking the funds from other projects to finance innovations and sometimes innovations are hard to describe in terms of ROI. However, innovation might go beyond tangible benefits such as added-value, customer satisfaction, customer loyalty, etc. that will be more valuable. If the brand wants to keep up with the competition, you have to keep up with the innovation as well.
Accenture found that 91% of shoppers say they’re more likely to shop with brands that remember their interests and preferences and offer relevant deals and recommendations.
We’ve all got so used to seeing truly relevant recommendations on streaming platforms, we’re easily annoyed when we come across a poor one.
With a personalized discount campaign, the brand shows the customers that they care about their interests and needs.
In the long run, you’ll even add to that personal-level communication, because 86% of consumers say they’re willing to share relevant information in return for personalized discounts.
The field of customer service is one of the most memorable interactions between the brand and its customers. Indeed, customer service can include free shipping on items, customer loyalty rewards programs, return policies, promotional offers and customer support with issues concerning a product. According to research from Harris Interactive, 62% of U.S. consumers have switched brands in the past year due to a poor customer service experience. Good customer service not only reinforces to clients that your company cares about them, but prevents one of the biggest reasons for customer drop-off.
No matter the industry, customer service plays a crucial role in representing the brand in what are often the most decision-influencing interactions in any customer journey. Successfully demonstrating brand dependability during these times can have a major positive effect on customer loyalty.
In summary, shoppers have endless options. The brand needs to try best to give customers what they want and need. Showing care about their preferences and motivations.
In the short run, this’ll help the brand boost sales and engagement. But after a while, it’ll make shoppers want to come back to your brand over and over. And in time, it’ll definitely help you build good relationships with them.
Finally approaching digital transformation with a customer-first mentality, and investing in the right technology and bringing on the right partners, companies can drive more customer satisfaction with less effort and cost. In a world where everything is digital, the answer to improving customer loyalty lies in digital transformation.
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