Being the CEO of a brand has its definite perks. But that in no way implies that you can control your customers in any manner you deem fit to generate business profits. If you are still in that zone, you are probably living in a bubble.
The world outside has changed. We are now living in an age where customers rule and control your business growth. Due to the explosive impact of the internet and smart devices, consumers have been empowered with the magic tool called ‘digital.’
Modern customers digitally research a lot before deciding to become a consumer of the brand. Their research includes previous customer reviews, ratings, product details, service qualities, and others. Therefore, the difficulty levels of converting prospects into long-term customers have become that much harder and effort-driven.
What Is Customer Loyalty and How Does It Help Your Business?
Loyalty is a strong bond that intensifies an emotional relationship between two people. Looking at the concept from a marketing perspective, customer loyalty is all about strong customer support and love towards your brand or organization.
But earning customer loyalty is not an easy task. Zeroing in on a winning style is difficult until you realize the benefits it holds for your business.
Benefits of Customer Loyalty:
Here are some key benefits of customer loyalty:
● Increased Revenue: Once the customers are loyal to the company or brand, they tend to pay more and get the best quality products and services again and again from the same brand. In fact, 65% of a company’s business comes from existing customers. Therefore, increasing customer loyalty will always generate more revenue and boost business profitability.
● Increased and Repeated Sales: You can easily extend bonding with your loyal customers through social media and gather their data regarding their demands. Later you can update them about the products of their choice using the same data and encourage them to purchase time and again.
● Getting More Traffic: Loyal customer reviews and a good loyalty program can sometimes attract new prospects and increase traffic. In this manner, customer loyalty programs can also boost conversion rates.
● Forecast Accuracy: With an efficient customer loyalty program, you can analyze and forecast future profits and expenses accurately.
How Can You Cultivate Customer Loyalty for Your Brand?
Check these tips that will guide you to improve and cultivate customer loyalty for your brand:
● Smart and Engrossing Advertisements: Advertisements play a sizable role in the field of marketing. And when it comes to advertising, creativity and intelligence have no alternatives. After all, the first impression matters the most. So, flaunt your creative zest and wit through multi-media advertising programs and make an impressive impact on your customers.
● Exceptional Customer Service: 93 % of customers are inclined to purchase repeatedly from brands that offer exemplary levels of customer service. Customer service is the ultimate tool that you need to use wisely to increase conversion rates for your brand. Understand and feel what your customers are looking for and help them to get the best services or products of your brand. Solve their queries and give them the respect that they deserve.
● Better Customer Interaction: Communication is key. Marketing is not possible without effective communication. Better and transparent communication often resolves every conflict. Developing smooth customer interactions through chats and calls will help you earn their trust. Interacting with customers will help you to be aware of their needs and wants which is absolutely an essential part of customer loyalty.
● Use Social Media Channels Effectively: Social media has transformed into the best marketing platforms nowadays. Engaging your customers through social media channels is an easy way to earn customer loyalty. Social media will help you to build a business community and act as the catalyst to win over the customers and users. Research says, nearly 71% of users prefer to purchase products from social media referrals. Therefore, it is wise to keep your customers updated and engaged through social media to build loyalty.
● Feedback Optimization: Allow your customers to leave feedback before they leave your website. You can easily set up online questionnaire software to know your customers better. Moreover, try new ways to engage your customers into filling a survey before closing the site – “How long have you been a customer of XYZ Company?”Or “What do you like the most about our services?” – These are the survey question examples you can put in the form.
● Reward Your Customers: Now, who doesn’t love rewards? To retain your loyal customers for a long time, rewarding turns out to be an emotional step. Customers who are enjoying your products and services for years will tend to have a soft corner for your brand. Involve those customers into your brand loyalty program and offer them meaningful rewards.
● Keep Customers Updated Through Email Marketing: Email marketing is another vital key to keeping your customers in touch and boost customer loyalty. Keep them updated about your company’s progress, new products, services, sales, offers, and other benefits through emails. Regular updates about your brand products can influence them to come back, explore and make a purchase.
● Delight Customers with Sales and Offers: Encourage customers to purchase from your brand during special occasions or events. Offer them low prices, discounts, and other special benefits, you can also offer them loyalty points and incentives for every purchase that they make. Help the customers to make an emotional bond with your brand so that they realize that you care about their needs and demands.
The former Starbucks CEO, Howard Schultz says, “If people believe they share values with a company, they will stay loyal to the brand.” Customers who are emotionally connected to the brand have a 306% lifetime value.
Therefore, it is vital to take care of the wishes and demands of your customers and make them feel how precious they are for you.