25 Ways to Build Customer Loyalty (Plus Its Importance)
45 Ways to Build Customer Loyalty (Plus Its Importance) 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
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