Studies have shown that companies often lose half of their customers every five years. And while attracting new customers is key to growth, acquiring a new customer can cost five times more than it does to retain an existing one. Loyal customers are the lifeblood of a business, and keeping them engaged and feeling appreciated should always be a top priority.
Below are a few simple ways your brand can improve customer loyalty.
Prioritize the Promotion of a Loyalty Program
For a loyalty program to work, customers need to be aware of it. Make sure employees are well versed in the ins and outs of the program and encouraging customers to sign up whenever a sale is made. If the benefits are outlined simply and logically, most customers will be happy to join.
It’s also important to keep in touch with customers who have already signed up for the program. For example, reminding customers of their point balance will help keep your brand top of mind. Texting coupon codes and sale/event notifications or sending regular e-newsletters are also easy ways to keep up routine communication.
Monitor and Manage Feedback
Nobody enjoys reading or listening to customer complaints, but if ignored or handled improperly, the consequences can be far reaching. Unhappy customers are likely to share their dissatisfaction with others.
Monitoring and managing customer feedback is critical in business.
All companies should develop a process to track customer reviews and feedback, making it easier to respond to both positive and negative messages in a timely manner. The information gathered will also help a business address customer service issues, strengthen customer engagement and loyalty, develop new products and services, and even acquire new customers.
Ensure a Seamless eCommerce Customer Experience
Customer experience expectations are higher than ever before. In fact, a recent study showed that 47% of internet consumers expect a web page to load in 2 seconds or less. A slow online experience will likely send prospective customers scampering to your closest competitor (possibly for good).
When running a retail business online, delivering a fast, easy and seamless checkout experience needs to be a priority. If a customer encounters a bug after filling his or her cart, creating a user profile and typing in credit card information, you can expect him or her to quickly abandon the purchase.
Re-engage Past Customers
Consistent customer follow-up is a simple and effective way to improve retention. Many people will simply buy a competitor’s products or services after receiving a sales call or being offered a discount. However, you can prevent this from happening by reconnecting with them regularly.
There are many ways to go about this. For starters, many businesses use software that helps them keep an eye on customers’ purchase or appointment histories. Through the software, automated re-engagement emails or text messages can be set up to target customers who haven’t made a recent purchase. These inactive customers would receive a message communicating something similar to “We’ve missed you! Check out our new summer menu!” Also, consider offering these customers an incentive to help boost your response rate.
Commit to a Cause
There are big gains to be had for brands weighing in on social issues. Research shows that among people who agree with a brand’s position, 52% express increased loyalty, 44% say they will likely purchase more, and 28% say they will publicly praise the brand.
If your company is genuinely committed to a cause, it can build a meaningful connection with customers and possibly turn them into lifelong brand advocates.
With its mission to increase awareness of the global water crisis, Stella Artois is just one example of a brand that has built a group of loyal, repeat customers around its commitment to an issue. The beer also practices what it preaches: For every limited-edition bottle purchased, a month of clean water is provided to women and their families in developing countries.
What tactics does your business use to improve customer loyalty? Share your strategies with us on Facebook!
