Well, No matter the size of the business, customer loyalty is incredibly important. Repeat customers spend more than new customers with a very large percentage. Plus, it’s up to ten times more costly and tedious to try to attract new customers than it is to keep the ones already doing business with you. If you’re looking for real ways to create and keep up customer loyalty, consider implementing a few of these strategies, and also keep them in your left hand as you proceed in your business.
Firstly, What is customer loyalty?
Concisely, customer loyalty is the measurement of a customer’s willingness to continue engaging in and purchasing your product or service. Building customer loyalty is very important for improving the lifetime value of current customers, which can make up most of your consistent revenue. It even helps bring in new customers (referrals ET all), since happy customers are more likely to recommend your product or service to others.
How to measure customer loyalty
There are many ways in which you can measure your customer loyalty; it isn’t just as simple as whether customers stay or go. To really measure the loyalty of your customers you need to know the intent behind repeat purchases, how often and when customers stop purchasing, where they make purchases from and how satisfied they are with each transaction, please try to read this paragraph again.😅
While every business will incorporate different metrics to answer these questions, here are some of the best ways to measure customer loyalty.
When it comes to customer satisfaction, there are five levels of measurement, they are called — Customer satisfaction level, they are as follow:
- Not satisfied: The customer felt their needs were not met.
- Slightly satisfied: The customer felt that some needs were met but most were not.
- Satisfied: The customer got what they expected.
- Very satisfied: The customer got what they expected plus some pleasant surprises.
- Extremely satisfied: All expectations were completely exceeded for the customer.
How to build customer loyalty
Knowing the tools and metrics for analyzing customer loyalty is just the first step. Now, you need to develop and put into practice a method for building customer loyalty. I will tell you few things you could do to make a client yours for a very long time;
1. Improve your customer experience
Customers remember when they’re treated well, and they remember when they’re treated poorly. In either case, they usually tell their friends and family, and that can either mean more business for you or lost business opportunities. It’s important to go above and beyond for your customers, pay attention, and identify any areas you can improve on for their experience.
2. Determine the best communication channels
Frequent communication with your customers keeps you fresh in their minds and lets you pass along important information, but it’s important to know which platforms and methods of communication are right for them, might be via phone calls, text messages, WhatsApp or social media mentions. No matter the outlets your business chooses for communication, it’s important to make sure that what you’re doing works best for your customers. Their ability to easily communicate with you will help keep their trust and loyalty.
3. Develop a reward program
One of the best and perhaps one of the cheapest ways to reward customer loyalty is to give extra perks to your most dependable customers. This extra bonus can look different depending on what works best for you and your business. A few common rewards programs include:
A point program is popular because it’s simple! Each purchase a customer makes with your business earns them points. As customers accumulate points, they can then transfer those points to a reward or some sort of special offering.
This program/method focuses more on the amount of money a customer spends on each transaction with you. The more they spend, the more rewards they accumulate.
Creating a tiered rewards program allows you to have different levels of rewards and earnings based on a customer’s spending habits. You can make all customers feel included based on their ability to spend with you and reward them accordingly.
4. Seek out customer feedback
One of the biggest keys to improving and retaining customer loyalty is seeking out customer feedback. Sending out surveys, asking questions on phone calls, and keeping track of your ratings while asking for as much feedback as you can get will ultimately be very telling in how you can improve your customer service.
5. Give customers a reason to be loyal
Many people believe that Apple has some of the most loyal fans out there. Customers go to great lengths to prove just how much they love the company, like spending hours camped in lines for product sales and having vehement arguments in favor of all the products.
Brands like this are so successful because they know how to excite their customers by making product reveals, sales, and launches an exclusive event. Thinking about the customer’s experience as more than just using their product, but how they feel throughout the entire interaction with your business is important.
Dear small business owners, please invest in customer’s loyalty. Investing in customer loyalty now will lead to future benefits
I hope this article was helpful, be kind to share the link with your friends and family, and also on your social media pages.