“Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you”-Chip Bell.
In the technologically driven internet world, where your competitors are just a click away, customer loyalty keeps your revenue flowing. Loyal customers are an asset, and they spend 67% more than new ones.
Apart from revenue, their continued patronage brings new business as they recommend your brand to their friends, family members, colleagues, and people in their social network.
Apple is a perfect example of a business with a staggering amount of loyal customers. According to research, 78% of iPhone users will not even search for other smartphones when upgrading in the future. Furthermore, whenever Apple releases a new device, hundreds of fans camp outside their store to be the first ones to grab their shiny new device irrespective of price. Even if Samsung launches a cheaper and better phone than Apple, customers will still buy an iPhone.
That’s the kind of loyalty every business should target.
Your business should have an X-factor to convert one-time buyers into repeat customers. The only problem is that there are no shortcuts to inspire loyalty.
With the cost of attracting new customers five times more than nurturing existing ones, customer loyalty is one of the best ways to boost business and increase ROI.
How to Gain Loyal Customers for Your Business
Let’s take a look at ways your brand can win loyal customers and make a lasting impression.
Ask for feedback
Regularly collect customer feedback through surveys and questionnaires. Only when you know what your customers think about your brand you can improve on customer experience. Use the information for building campaigns that promptly satisfy the client’s needs. The mathematics here is simple,
Listening to customers = Increase in loyalty
When you listen to your customers, they’re happy, and a happy customer tells nine others about their excellent experience. While an unhappy customer tells 16 people about their negative experience.
It propels your business to a new level and helps uncover hidden and unexpected opportunities. Customer feedback builds a brand image and successfully turns promoters into customer advocates.
Ways of asking for customer feedback:
- Email surveys
- Online reviews
- User experience testing
- Focus group discussions
- Website questionnaire
When you collect feedback from customers (those who have purchased from your brand) using surveys and questionnaires, you measure brand loyalty. These surveys assess how good your brand is at inspiring loyalty and customer retention. It helps you dig deeper and gain insights contributing to customer loyalty.
Example: Amazon seeking feedback through an email survey.
Prioritize customer service
Seven in 10 customers spend more money to do business with a company offering superior customer service.
This makes customer service the lifeblood of your business. It’s an ingredient, which alone can help you gain loyal customers for your business. Today, customers evaluate every interaction with your brand to judge your services.
Every time a customer calls the customer service department, questions on social media, or makes a return – they continually evaluate your business. That means your in-store staff should be courteous, polite, and helpful, while your customer service representative must be capable of solving customer issues promptly.
Customers remember when they’re treated well and when they’re not. In either scenario they don’t hesitate sharing it with their friends and social groups. 42% of customers expect a response within one hour when complaining in social media – making prompt customer service necessary.
Ways of enhancing customer service:
- Respond quickly to customer problems and queries
- Reduce wait time on phone calls
- Provide different ways of connecting with customers (email, phone, social media)
- Simplify concern or grievance submission process
Example: Nike replied immediately to the customer’s concern on Twitter.
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Offer unexpected incentives and rewards
One of the best ways of creating a lasting impression is by surprising the customer with unexpected incentives and rewards. Rewards and incentives build a great bond as you’re thanking them for being your customer.
Customers need to perceive your rewards as valuable. Only then the reward or incentive will encourage repeat business. According to KPMG, 75% of customers switch brands for a better loyalty program.
This makes offering incentives and rewards a game-changer in customer loyalty.
Who wouldn’t love a “Buy 5 espresso in a month, get the 6th one free.” loyalty program?
From airlines offering the frequent-flyer program to Starbucks, providing a loyalty card – modern-day companies are trying hard to retain existing customers through lucrative incentives and rewards.
These rewards give customers a reason to come back to your brand.
Ways of offering incentives and rewards:
- Provide a discount to high spending customers.
- Create loyalty or punch card programs.
- Give free items with multiple purchases.
- Invite them to try your new product for free.
- Hold a preview event.
Example: Starbucks Rewards program is one of the best customer loyalty programs.
Provide excellent user experience (UX)
According to a study, 88% of online shoppers are less likely to return to a brand after bad user experience on the website – hampering brand loyalty.
If you don’t want your customers to be among that 88%, start providing a unique UX experience.
A good UX results in seamless customer interaction with the website and fosters long-term relationships. When a customer finds it easy to navigate through your website, they’re more likely to explore it and try out new products and services fully.
A website or interface which is designed keeping in mind user-friendliness enhances brand loyalty simply because it’s easy and enjoyable to use.
Ways of improving UX experience:
- Observe your customers using the product.
- Test and retest design and stick to usability laws.
- Focus on customer retention and not revenue.
- Always adapt to feedback.
- Keep the design clear and straightforward.
- Offer free shipping on products.
Too many fancy features and interactive movements make navigation a cumbersome process. Your customers consider these features undesirable and are likely to switch to brands with a simple, concise, yet pleasing design.
Example: Paypal provides a simple and user-friendly website and mobile app experience.
Provide convenience
According to a study by Harvard Business School and the University of British Columbia, people who spend money to save time are far more satisfied than those who spend money to buy things.
The same rule applies to customers; the more your customer saves time when doing business with your brand, the more repeat business you will get.
Customers hate friction and prefer doing business with brands, which follows this convenience trend.
The rule here is simple, anything which makes a customer’s life easier is a winning strategy. A brand that hits the bull’s eye with a convenient approach can disrupt competition.
Uber is one company that disrupted the competition through its convenience model or trend. A customer has to open the Uber app and punch in the destination to book a cab.
That’s the type of convenience every brand should strive to achieve.
Ways to provide convenience to customers:
- Streamline and simplify the checkout processes.
- Answer queries on Twitter or Facebook instead of wasting time on automated menus on the phone.
- Offer auto-billing
- In-store pickup
- Free delivery and easy returns
Example: Amazon offers superior convenience to customers in the form of one-click ordering, two-day delivery, and easy returns. As a result, Amazon has a large base of loyal customers.
Conclusion
Gaining loyal customers starts with knowing customers, understanding what they need, seeking feedback, offering rewards, and providing convenience. A business that overlooks or ignores customer loyalty may thrive in a competitive environment but at a high cost.
Businesses with high customer loyalty are the ones that leave no stone unturned to attract and retain existing customers. When the brains of Apple fans were scanned, it was found that the brand lights up the same part of the brain as images of deity do for religious people. This research showed that when businesses offer products or services which a customer perceives as ‘best’, they’re entirely devoted to it with passion.
Inspiring god-like devotion will not occur instantaneously, and you need to work hard to increase your brand’s perceived value. These tips will help you gain loyal customers who’re happy to make frequent purchases.
There’s no better time than now to build a loyal customer base as they increase ROI, work as brand advocates, ensures a consistent flow of revenue, and leaves a positive review on social media and review sites.
What’s your secret to customer loyalty?
