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45 Ways to Build Customer Loyalty (Plus Its Importance)

build customer loyalty

Is your brand getting good reach but customers only shop with you once and don’t stick up with your brand? The answer to that is the need for customer loyalty.

There might be different reasons why your brand can’t build customer loyalty like poor customer service or lack of personalisation.

A loyal customer is like a comet, you find one in every hundred customers but they stay with you till the end. Sometimes even defending you against your customers.

But whatever the reason, we’ve got the solution to this problem for you. We have the 15 ways to build customer loyalty along with its importance. Pull up your notepad and continue reading to know all about it.

What is Customer Loyalty?

Customer loyalty is when a customer is loyal to your brand, prefers it over your competitors and sticks with you. This makes him buy more from your brand, repeat his purchases and spread good word about it. And this loyalty is built when your customers start trusting your brand, have a great experience and are happy with it.

For example, Apple has a very loyal customer base, so loyal that even with so many other brands of phones in the market, they’d still go for Apple. Why? It’s not just because of the product, it’s because of the customer service, the standard of living, the design, the features, and everything. These days, the iPhone is not just a phone, it’s an excellent example of customer loyalty.

Importance of Customer Loyalty

Customer loyalty not only helps companies build a relationship with their audience but makes them stick with your brand, increase sales and maintain a good reputation.

More Customer Lifetime Value

A customer’s lifetime value is the value or profit that a customer brings to your company with his purchases from you. The more loyal they are to your company, the more they will buy from you and the more they will spend over their lifetime. For example, a customer at your coffee shop spends Rs. 50 daily for his coffee, which is Rs 18,250 over the year, Rs. 36,500 for two years and more, which is adding to the profits for your company.

Builds Reputation

Studies show that 5-10 per cent of customers after shopping leave reviews for the product or company. When customers are happy and become loyal customers for your brand, chances are they will leave good reviews for your brand, and tell their friends and families about you. This will not only help you get more customers but also build your reputation as a brand that is credible and worth the hype.

Increase Sales

When customers are loyal to your brand, they will buy more and more from it and increase the sales of your company. This will help you plan for your company better and will also help you get started with the investments. For example, Netflix the staple streaming site has a loyal set of customers who buy its subscription services monthly or yearly and that is where most of Netflix’s revenues come from.

Stand out from your competitors

In a crowd of companies, what helps your company become THE company are your customers. The more loyal your customers are and the better the relationship that you have with them, the more you can stand out from your competitors and set yourself apart. And you don’t have to worry about your customers being swept in by your competitors. Around 88 per cent of a brand’s consumers say that a brand can build customer loyalty with three or more than three purchases and a customer is less likely to switch brands after they are loyal.

Sticks Out for you in Bad Times

When your company is going through a hard time, your loyal customers are who will help you improve and stick with you. This can help you face economic crises and disasters. For example, during COVID-19, what Helped many local restaurants survive was their customer base which was loyal and happy with their services.

45 Ways to Build Customer Loyalty

Building customer loyalty is a process that once started doesn’t stop and you need to keep updating and evolving it and give your customers the perfect customer service. Here are the fifteen ways to build customer loyalty for your brand.

1. Give them the Best Customer Service

Customer service is the block upon which customer loyalty is built. According to research, 73 per cent of customers stop buying from a brand after they experience bad customer service. You have to train the employees of your company to be polite, respectful, interactive, empathetic and problem-solvers. Looking into what problems your customers have and finding a solution to that can make them happy and possibly turn them into a regular customers.

2. Personalise their Customer Interactions

Personalising your customer interactions to fit your customer base can make them feel seen and understood. You can use the information from your customer analytics and feedback to build up a strategy and interact with them how they want to be treated. Send out emails, recommend products, and tell them about the offers that your company has, and it will help you connect with your audience.

3. Put Out Discounts and Honor Them

Putting out discounts and offering rewards to honour your customer can make them feel seen appreciated and motivated to continue making purchases with you. These rewards can be some special promotions, birthday discounts, or giving them early access to your new products with loyalty programs.

4. Create a Loyalty Program

If you have been thinking of ways that are most effective to build customer loyalty, you can start up a customer loyalty program. A customer loyalty program invites customers to shop more from you by giving them points, discounts, and other rewards for their continued services with you. You have to make sure the program is well planned though and easy to understand so that the rewards you have are easy to understand and helpful for your customers. For example, offering a customer free drinks on every ten purchases in your coffee shop.

5. Interact with them on Social Media

Around 62.6 per cent of the world’s population uses social media, which makes social media important for interacting with your customers and building relationships with them. You can interact with Your customers online by replying to comments, reposting stories and running campaigns. Interacting with your social media audience daily can help you build a relationship with your customers and also build loyalty.

6. Collect & Work on Customer Feedback

Collecting feedback from your customers on your products, services and customer service can help you find out what your customers like and what they don’t. You can then work on this feedback to serve them how they like it. You can use surveys and reviews, to collect data and then make changes in your strategy according to them. This can make your customers happy and help you build trust with them.

7. Best Products for the Best Customers

Building up the best products for the best customers can help you build customer loyalty and will help you make your customers happy. Manufacture products of good quality and keep updating them to make your customers happy and meet their demands. This will make them trust your brand and keep coming back for more.

8. Build a Community with Your Customers

Building a community with your customers can help you build relationships with them and make them a regular customer. Hosting events, interacting with them, and making groups can help you connect with them and make them feel like a part of your brand.

9. Referral Programs

Referrals are codes and discounts that a customer receives after he adds a new person to use the product or service. This not only rewards the customers but also helps you bring more customers. For example, you can put out discounts for both the referrer and the new customer and they will both be happy for it.

10. Surprise your Customers

Surprising your customers with unexpected gifts and moments can affect your customers in a good way. Even taking small steps like sending them a handwritten thank-you note or giving a free sample, can make them happy and also a loyal customer who loves your brand.

11. Spread your Brand Message

Spreading your brand’s message and centring all your social media posts around that message can help you set up your brand image. And the more you spread it, the more you will be seen in that way and remembered more.

12. Expert in What You Do

Posting content that is helpful and informative for your followers can help your brand to be seen as an expert in what you do. Posting blogs, tutorials, webinars, and guides that help your customers can help them learn more about you and also help them in making the most out of your products and services.

13. Appreciate Your Customers

By appreciating your customers you can make them feel seen and loved. This will not only make them trust you but might also make them loyal to your brand. Even simple thank-you emails, events for appreciating them or special loyalty offers can show your customers that your brand values and cares for them.

14. Solve Customer’s Problems & Complaints

Solving your customer’s problems and complaints on time will make your customers feel heard and seen and trust your brand more. You can put up a strong customer service plan, train your employees and make sure that all their problems are dealt with and a solution is provided for every one of their problems. Putting up a complaint management system can really help you solve a problem or issue before it escalates further into something much worse and bigger.

15. Be Honest with Your Customer’s

Being completely honest and transparent with your customers can help them learn everything about your brand and its products and services and put their trust in you. Be open about your brand, its principles, products, discounts and changes that can affect them in any sort of way. And when mistakes do happen, accept that they happen and try to solve them as quickly as you can.

16. Offer Consistent Quality

Ensure that your products and services maintain a consistent level of quality. Consistency builds trust and reliability, encouraging customers to return.

17. Engage in Corporate Social Responsibility

Show your customers that your brand cares about more than just profits. Participate in social causes, environmental sustainability, and community development. Customers are more likely to be loyal to a brand that shares their values.

18. Provide Exclusive Access

Give loyal customers exclusive access to new products, services, or events. This makes them feel valued and special, enhancing their loyalty.

19. Simplify the Customer Experience

Ensure that your website, app, and in-store experiences are user-friendly. A smooth and hassle-free experience encourages repeat visits and purchases.

20. Use Data to Personalize Offers

Leverage customer data to tailor offers and recommendations specifically to their preferences and past behaviors. This personal touch makes them feel valued.

21. Host Webinars and Workshops

Offer free webinars and workshops on topics related to your products or industry. This positions your brand as an authority and provides value to your customers, keeping them engaged.

22. Follow Up Post-Purchase

After a purchase, follow up with your customers to ensure they are satisfied. This shows you care about their experience and can help address any issues promptly.

23. Implement a Tiered Loyalty Program

Create a tiered loyalty program where customers can earn higher rewards as they spend more. This encourages them to continue shopping with you to reach the next level.

24. Offer Money-Back Guarantees

Provide a money-back guarantee to show confidence in your product. This reduces the perceived risk for the customer and can increase their trust in your brand.

25. Maintain a Strong Online Presence

Regularly update your social media channels, blog, and website with relevant and engaging content. Being active and responsive online helps build a connection with your audience.

26. Showcase Customer Stories

Share testimonials, reviews, and stories from your customers. This not only provides social proof but also makes your customers feel recognized and valued.

27. Create a Seamless Omnichannel Experience

Ensure that your customers have a consistent and integrated experience across all channels, whether online, in-store, or via mobile. This enhances convenience and loyalty.

28. Celebrate Milestones with Customers

Acknowledge and celebrate milestones with your customers, such as anniversaries of their first purchase. Small gestures can make a big impact on customer loyalty.

29. Educate Your Customers

Provide educational content about how to get the most out of your products. This can be in the form of tutorials, guides, or FAQ sections, helping customers see more value in what you offer.

30. Create a Customer Advisory Board

Invite loyal customers to join a customer advisory board. This gives them a voice in your business decisions and makes them feel valued and important.

31. Offer Free Trials or Samples

Let potential customers try your products or services for free. If they have a positive experience, they are more likely to become loyal customers.

32. Surprise Loyalty Rewards

Occasionally surprise your loyal customers with unexpected rewards, such as discounts, free products, or special services. Unexpected rewards can delight and encourage ongoing loyalty.

33. Develop a Mobile App

If applicable, create a mobile app that enhances the customer experience with features like easy shopping, exclusive deals, and personalized content. An app can increase engagement and loyalty.

34. Utilize Customer Analytics

Analyze customer data to understand their behavior and preferences better. Use these insights to continuously improve your products, services, and customer interactions.

35. Foster a Positive Company Culture

A positive company culture where employees are happy and motivated can significantly impact customer service. Happy employees tend to provide better service, which in turn fosters customer loyalty.

36. Offer Flexible Payment Options

Provide multiple payment options to cater to different customer preferences. This convenience can enhance the customer experience and encourage repeat purchases.

37. Provide Excellent After-Sales Support

Offer robust after-sales support to help customers with any issues they may face post-purchase. This ensures customer satisfaction and builds long-term loyalty.

38. Stay Innovative

Continuously innovate and improve your products and services. Staying ahead of the curve keeps customers interested and excited about your brand.

39. Showcase Employee Expertise

Highlight the expertise of your employees, such as their knowledge, skills, and contributions to your products and services. This humanizes your brand and builds trust.

40. Maintain Transparency in Pricing

Be transparent about your pricing, including any additional fees or charges. Honesty in pricing builds trust and prevents customers from feeling deceived.

41. Create a Safe and Inclusive Environment

Ensure that your brand promotes a safe and inclusive environment for all customers. Inclusivity can enhance customer loyalty by making everyone feel welcome.

42. Recognize and Reward Customer Loyalty Publicly

Publicly acknowledge and reward loyal customers through social media shoutouts, newsletter mentions, or loyalty award programs. Public recognition can make customers feel appreciated and valued.

43. Leverage Influencer Partnerships

Partner with influencers who align with your brand values. Influencer endorsements can boost your brand’s credibility and attract loyal followers.

44. Keep Communication Channels Open

Ensure that your customers can easily reach you through various communication channels like email, chat, phone, and social media. Quick and accessible support fosters loyalty.

45. Stay True to Your Brand Promise

Always deliver on your brand promises. Consistency in meeting customer expectations builds trust and loyalty over time.

Boost your brand loyalty with Locobuzz – where customer satisfaction meets cutting-edge technology!

Challenges to Customer Loyalty

Building customer loyalty can for sure benefit your business but it also has some limitations which might cause a dent in your marketing strategy. Knowing these limitations can help you pick out a solution and find ways to build customer loyalty.

Cutting Edge Competition

With globalisation defining today’s economy, unless you have a very niche product or service, you will have to face a lot of competition with so many companies selling the same product at you at lower prices. This makes it difficult for brands to keep customers. For example, if you take an online clothing store and the clothes that they sell, you can find those same ones on other websites at sometimes discounted prices, which makes switching easier for customers.

Changing Customers

With another new trend coming in the next day, customers’ needs and what they want change every day, so it’s important to keep changing with their changes in demands. For example, these days customers prefer eco-friendly products rather than ones that harm the environment, so working on your product line can help you maintain customer loyalty.

Price & Customer Service

Many customers in 2024 are sensitive to price and poor customer service. Even small price changes can mean a switch of the customer’s likes from one brand to another. This is especially true for airlines and telecom companies. And 94 per cent of customers say that a bad review stopped them from making a purchase, which makes Customer Service a really important point and a challenge to customer loyalty.

Customer Interactions

Customer Interactions are really important in building customer loyalty and they start from when a customer first comes to you till he stays. You need to interact with them meaningfully through social media, communities and in-person conversations. Less to no interactions can make your customers feel like they are not heard and they will disconnect from your brand.

Loyalty programs

Loyalty programs invite a lot of customers and make them stick to your brand. But no loyalty program or one with zero value will not necessarily help you with keeping customers. If the benefits for your customers are not clear, a customer might find no use for it and might not stick with your brand for long.

Locobuzz for Customer Loyalty

Locobuzz can help your brand monitor the talks going around and about you online, and on social media, understand what customers think about your brand and help you interact with them. Locobuzz uses AI and data analytics to help you understand more about your customers and what they like, so you can design your strategy accordingly. With social listening, analytics and reporting, Locobuzz can help you build a social presence for your brand, make its customers happy and grow your brand.

Conclusion

Building customer loyalty is important for companies to grow and build their reputation, but it is not a child’s play and needs a lot of work. These are the 15 ways to build customer loyalty. You need to pay attention and understand your customers, and what they like and don’t like about your company, product or service. Your company runs around them, so pay attention to their needs, keep interacting with them, make them happy and build a real relationship with them. But once you get a customer to be loyal to your brand, they will not only shop from you again and again but be a walking billboard for your brand and recommend your services and brand to their friends and family. Your brand will have not only more sales, but also more goodwill, good customer relationships, good reputation and more importantly free word-of-mouth publicity.
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