Customer loyalty is a generally misunderstood concept. Although it is widely assumed that customer satisfaction and customer loyalty are synonymous, there is a significant distinction between them. Customer satisfaction is thought to necessarily result in customers ’ loyalty, however this may not always be the case. While practically every company provides some form of consumer feedback to assess customer happiness, only a few brands are able to establish client loyalty. The issue with pleased consumers is that they are not always loyal! A consumer may be highly delighted with your product or service but will switch to another supplier at a lower price. Starbucks, Apple, and several other brands are proof that a distinctive customer experience can go a long way toward developing consumer loyalty.
Even though there is no set formula for developing and improving client loyalty, Here are a few ways that can help in increasing customer's loyalty and engagement
Before that let’s see what is customer loyalty and why it is important for every business,
Customer loyalty and its importance
Customer loyalty can be defined as a customer's attachment to your brand. A devoted consumer will always prefer you over the competition, whether it is due to your outstanding customer service, unrivaled product variety, or another method you distinguish yourself. Loyal consumers are the most vital treasure any brand can have. Repeat customers generally spend more and make greater purchases: A survey found that the average recurring client spent 67% more in months 31-36 of their purchasing relationship than in months 0-6. On the other hand, acquiring new consumers can cost somewhere between five to twenty-five times more than marketing to existing customers, making a loyalty programme one among the most cost-effective methods for a business to enhance ROI.
Ways to Boost Your Customer Loyalty and Business Engagement
1. Give Discounts
We all know that people love to see discounts on everything they purchase. Using cutting-edge analytics technology, shops may offer customers discounts on things they buy frequently, as well as products that complement previous purchases. Offering an unique discount to college students or to any is a brilliant way to acknowledge major portions of your client base. Discounts can also persuade individuals to buy from you during typically quiet times. Consider a restaurant that offers a 20% discount on Wednesdays. Knowing that they may obtain a better bargain on a specific day can assist you in building a loyal customer base.
2. Offer Rewards
You can see businesses like Ajio, Flipkart, Amazon and many others do provide credits or coupons after making a purchase which attracts individuals to do more purchases, just follow the same, allow your customer gain points for every purchase they do to reward them for their payments. When a customer registers up or makes a purchase, give them credits that they may use to make future purchases.
3. Utilize Referrals
Word-of-mouth advertising is another powerful strategy that any business owner should employ! However, the main question is, "How can you encourage your consumers to refer others in their networks?" What you can do is, simply create unique codes for each of your clients to use when referring to their network. Once someone is recommended and utilizes the link to join up and place an order, reward both customers, the referee and the referrer, with a discount!
4. Happy Hour
To attract more customers, plan a happy hour with discounts on select products or raise the value of loyalty club tickets. Announce the precise time ahead of time to your consumers, or just announce the day beforehand and surprise them with the exact hour. This will assist you in increasing platform visits, engagement, and sales.
5. Maintain Human Contact
Even in this day and age, one-on-one relationships are highly valued. Online conversations and email contact are beneficial in numerous situations, but nothing surpasses the personal touch. Did you know? 79% of customers say engaging with a human is an essential aspect of their experience. This indicates that, while digital channels are still important, having a real person available via phone is a convenience that no customer needs to forego.
6. Be Honest With Your Customers
Mistakes are unavoidable in life. Consider the countless data breaches that some of the largest and most recognized businesses have experienced in recent years. The moral here is that honesty is always the best policy. What would a consumer feel if a firm did not fix a minor error with an order or a more serious one, such as a data breach, after they became aware of the problem? They are likely to lose all faith in the firm and will tell their friends and relatives about their negative experience. Be honest with your consumers no matter what the problem is; ignoring it entirely does not put them at ease. A simple email acknowledging the problem and outlining how it will be corrected may be all your clients require to remain loyal.
7. Pay Equal Attention To Your Social Activities
Did you know that eight out of every ten millennials want companies to communicate with them via social media? Customers now prefer to connect directly with brands via social media. As a result, it is critical for businesses to have a social media plan in place to satisfy client expectations and offer them the good experience they seek from your company.
8. Highlight Your Testimonials
Customer testimonials are a significant marketing tool that serve as social evidence to potential consumers that they are making the appropriate decision. Request evaluations from your loyal clients and reward them. Highlight the best ones that capture the core of your product. Place them on your website, social media profiles, and advertisements.
9. Respond to Customer Feedback and Reviews
Asking clients for feedback is only the beginning. You must always reply when a consumer publishes a review or provides feedback, whether it's favorable or bad. This not only reveals that you're paying close attention to what others are saying about you, but it also indicates that you appreciate your customers' views and opinions. Create several scripts for different scenarios so that your replies are polite, professional, and consistent with the tone and voice of your brand.
Communication is essential in every business. So, communicate with your consumers on a regular and consistent basis. Set your customers' expectations for extended delivery delays and perhaps delayed chat answers. Increase public understanding of health hazards and measures. Conduct surveys and broadcast live on social media sites to discuss survey results improvements. Communication is one of the most effective client engagement tactics you can use. Don't irritate customers, but make them feel welcome.