What Is Customer Loyalty?
Customer loyalty in plain terms refers to the likelihood that a customer will do business with a company repeatedly. This can be the result of many things but in particular; your company or brand’s level of customer satisfaction, customer experiences, and the quality of goods or services that is provided by the company.
Customer loyalty is worth investing in. This is because when a customer is loyal to your business this can create huge opportunities and the benefits are plentiful. Not only are customers less likely to be influenced by competitors but also it has been found that customers are actually likely to pay more for this repeated high-quality product or service. Essentially you are creating a long-lasting relationship that your customers may feel on a more personal level.
Some Key Characteristic of Loyal Customers Include:
- They are not actively searching for different suppliers
- More willing to refer a brand to their family or friends
- Not open to pitches from competitors
- Understanding when issues occur and trust a business to fix them
- Offer feedback
- As long as there is a need they will continue to purchase from a website
Customer loyalty is not to be ignored. If done correctly you will have a powerful tool to create growth. Investing time in strategies that gear towards improving customer loyalty will keep customers returning and even create an organic positive promotion to new customers.
Why Is Customer Loyalty Important?
Before we begin on how to improve customer loyalty we must first look at reasons as to why it is important. Firstly, repeat customers spend 67% more than new customers. Therefore, it makes sense that findings have suggested retaining existing customers is cheaper than acquiring new ones. The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5% to 20%. That being the case, only we are consequently seeing a huge potential for profit and higher conversion rates of website visitors when customer loyalty comes into focus.
Additionally, from a strategic point of view, we can also see benefits. Customer loyalty can help in effective planning. With returning customers you can collect data and analyze behavior. Ultimately drawing out a road map of likes and dislikes for a strategy that will gear towards retaining more customers and overall customer experience.
How to Improve Customer Loyalty?
Make Customer Service a Priority
69% of US consumers say customer service is very important when it comes to their loyalty to a brand. With this being the case businesses that do not provide excellent customer care are giving way to customers to switch to competitors who do. As a business, you must keep in mind that every interaction is being taken into account. Therefore, all touchpoints must be aligned and frictionless as there is no doubt that the quality of customer service is a way to make or break a business.
So one thing is for sure, If you are looking to gain loyal customers, a decisive and well thought out customer service strategy must be in place. Findings have revealed that 93% of customers are more likely to make repeat purchases with companies who offer excellent customer service. Fast response times are just one key component that will make a difference here. This can be optimized by implementing things such as connecting your business to communication platforms such as live chat. Here canned responses or automation can be utilized to aid in quicker response times and optimization. Additionally, live chat agents are able to handle up to six chats at one time with no need to wait in long phone queues.
Rewards
A proven way to gain those loyal customers is through reward systems. 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. Gifts, discounts, or exclusive offers are a great way to reward your customers for their loyalty. And a small gesture goes a long way! 75% of consumers say they favor companies that offer rewards. With this in mind, businesses should think of loyalty programs as a perfect way to extend gratitude and say thanks to those customers who keep coming back for more. After all, they deserve it!
Omnichannel Experience
There is no denying that customer loyalty and experiences are intertwined. When you are creating positive experiences for your customers they will be more inclined to return. One simple way to do just that is to be available on all relevant platforms. Not only to be available but also to provide a seamless experience. Ensuring you are present on every digital platform will tailor to all types of customers. They know they can reach out to your business in a way that suits them and in a way they know how to. When customers feel as though your help is just a click away, they know they can rely on you. As a result, this helps build that all-important relationship and trust in your brand or service.
Make It Easy and Convenient
Customers want nothing more than an easy and frictionless experience. If that’s provided, they will keep coming back for more. One great example of this is conversational commerce. This is when a customer can complete their whole journey through a communication platform such as live chat or WhatsApp. Anything from questions and complaints to payments can be handled. No more online forms, waiting for emails, or holding in phone queues. Real-time conversations and fast and efficient service, all on the platform of their choosing.
We live in a world that thrives on instant gratification. Conversation24 helps businesses cater to this need for immediacy among customers through the use of real-time conversations. Helping to generate leads and create a loyal customer base.
