Customer loyalty is one of the most important factors for many organisations, after all, as a business owner you don’t just want to keep getting new customers but you also want to retain your existing ones. If your customers are satisfied with your product or service and the customer service you’ve provided, generally speaking, they will buy from you again.
Why exactly is customer loyalty so important for businesses? And how do you go about gaining and maintaining it? Read on to find out…
Why Maintaining Customer Loyalty is Important
In today’s crowded marketplace, customers have more choice than ever about who they choose to shop with. If customers don’t get the kind of treatment they expect from you, it is so easy for them to switch and shop with your competitor. Therefore, it’s really important that you create a good lasting impression with your customers to ensure they’re loyal to your business and continue to shop with you.
It actually costs businesses 5 times more to attract new customers than it does to retain one! These costs can include advertising and promotions, sales’ representatives time, opening new account records, along with various other administrative costs. Therefore, from a financial perspective, it makes a lot of sense to focus your efforts on retaining your customers and creating a tribe of loyal customers. Of course, acquiring new customers is important for business growth, but why spend all the effort acquiring them, just to let them slip through your fingers after one sale?
Some experts say that increasing retention rates by just 5% can actually lead to an increase in profits by 25-90%! What’s more, your loyal customers will provide free marketing through word-of-mouth when they tell others of the great experience they had with your business.
Strategies for Maintaining Customer Loyalty
So now that you know just how beneficial it is to gain and maintain customer loyalty, you’re probably wondering how to create loyal customers. Well, below are a number of effective strategies.
Make customer service a priority
Firstly, maintaining excellent standards of customer service is absolutely essential in creating customer loyalty. In fact, one study found that 93% of customers are likely to make a repeat purchase with companies who offer excellent customer service.
I’m sure we can all think of a time that we were really impressed with the level of customer service we received from a company, just like we’ll be able to remember a time we were treated really poorly. The chances are you haven’t gone back to shop with the latter, right? Customers remember when they’re treated well, and they remember when they receive bad customer service. In either case, the majority of people will tell their family or friends about it, which can either mean more business for you or a lost business opportunity. In fact, 77% of customers would recommend a brand to a friend after having a single positive experience!
Communicate with your customers
Communication is key in pretty much every area of life, and business is no exception! Frequent communication with your customers keeps you fresh in their minds and more likely to think of you when they’re looking for a product or service that you offer.
Take the time to set up a database with all the contact information you need for your customers. You can then send them friendly reminders, monthly newsletters and even monthly newsletters.
Good communication is a vital part of providing excellent customer service, which in turn, helps to maintain customer loyalty.
It’s also really important to make it easy for your customers to contact you if they have any questions or issues. Social media is a great way of ensuring this since it’s really easy to access and so widely used by most people nowadays! However, keep in mind that communications across social media are more effective if you limit how many of them are sales messages.
Customer loyalty programs
One of the best ways to keep customers coming back is to reward them for their loyalty. Research shows that 76 percent of women and 72 percent of men are likely to shop at a business that offers a loyalty program.
Loyalty programs are really effective because customers want to feel appreciated. After all, they can choose to spend their money anywhere, and if they’ve chosen to shop with a specific company, they want to feel as though they’re valued. By rewarding loyal customers, not only will they feel appreciated but they’ll also be more likely to return to shop with you in the future, helping to maintain customer loyalty.
Encourage customer feedback
You should always make an effort to collect feedback from your customers and listen to it. Your customers will likely have some really valuable feedback that could improve your customer service and how your business runs in general.
Listening to and acting on the suggestions from your customers will make them feel appreciated and that they are valued as a customer. This positive feeling will often lead to a sense of loyalty to your organisation.
Perx Rewards provides a suite of reward-based marketing tools which are designed to gain and maintain customer loyalty. If you’re interested in finding out more about how PERX can benefit your business, contact us at firstname.lastname@example.org or call 0333 202 88 33.