Customer loyalty, simply put, is a consumer’s willingness to purchase or work with a brand or establishment again and again. This is the outcome if a customer has a positive customer service experience and is satisfied with the product or service. Loyal customers are the ones who are going to purchase products even if they’re not on sale and are the ones who will recommend your company’s products and services to their family, friends, and colleagues.
The Importance of Customer Loyalty
Customer loyalty is something that all establishments and businesses should desire. The point of starting a for-profit company is to attract and retain happy customers who will purchase products and services and grow your revenue. Statistics even show that loyal customers make frequent visits to and make more purchases from establishments that they are loyal to.
How to Build Customer Loyalty to Drive Revenue
In the United States, 40 percent of online shopping revenue is derived from repeat clients, who make up only 8 percent of website visitors. If you want to create consumer loyalty that improves revenue growth and creates new customers, check out these tips.
Create a Connection and Plug In
Recently, a survey revealed that 71 percent of customers who put an end to their relationship with a business feel they experience inferior customer service. Additionally, research also shows that consumers want to talk to a real customer service representative. In today’s world of tweets, text messages, and status updates, it’s peculiar that millennials seek human interaction as part of their purchasing experience. Automated phone systems and returned calls from well-trained representatives will help your business acquire loyal customers.
Consider Payment Options
For customers struggling with their cash flow, having different payment options is a great way to go to earn customer loyalty. By establishing payment plans, customers will see your business as more accommodating to their financial needs and will happier with your business. This could lead to more referrals and loyal repeat customers.
Hello and Goodbye
Customers remember the first and last moments of their service interactions, so how customers are greeted and thanked at your company or establishment is critical. A good-natured staff will naturally increase sales. Saying hello and goodbye may be a small thing, but it could tremendously improve customer loyalty and boost sales.
It’s never wise to assume that all employees care about the brand and the company’s loyal customers, so it’s the management’s or owner’s job to let them know of what the company expects from them, which is to deliver a great customer experience. If your employees are not treating customers well or representing the brand well, you will not be able to effectively create loyal customers.
Customers are great at convincing themselves that they need what they want, and it’s the company’s job to provide them with what they want and give them a reason to need it. Loyalty occurs when a brand is able to predict what customers need before they know it.
Investing in the Right Customers
An example of investing in customers is providing them with a whole year to return items. While this could be a headache to accountants, it is a home run for customers and boosts the company’s revenue because customers want to return and make more purchases for the benefits you offer them. The success of investing in customers comes by recognizing that the long term benefit that customer loyalty will bring will make the short term investment well worth it.