Customer Loyalty is a primary element for the presentation of a company, logically. However, the contribution of an innovative, quality product or service is not sufficient today to get loyal customers. Their loyalty, hence, is necessary through effective loyalty strategies capable of fostering that trust and loyalty.
In marketing, loyalty is essential for customer-oriented companies, which pursue a long-term relationship with end-users. In practice, the independent is none other than to attain customer loyalty, that is, that a customer who has purchased our product or service develops a regular customer who, even better, also recommends us.
Loyalty and Satisfaction don’t always Coincide
The Satisfaction of the client is faithful, not always guarantee that the company remains. While being satisfied will influence your loyalty, this does not prevent you from purchasing competitive products or services.
Therefore, a sum of factors also affects when choosing our company or that of the competition.
In this sense, loyalty intends that these factors add rather than subtract when making decisions. Or, what is the same, it seeks to develop a loyalty strategy that makes the customer feel well cared for, at a point of balance between the extremes of carelessness and excessive insistence.
Therefore, an effective loyalty strategy seeks to meet the client’s needs -always within what is feasible-by responding to their requirements in different aspects and in a personalized way to know their preferences, understand their needs, and answer or, even better, exceed your expectations.
Make Customer Service a Priority for the brand
A dynamic part of any business is customer service. An effective customer relationship management strategy translates into solutions more focused on specific customer needs. First, learn everything you can about the brand’s different customer segments, including their buying habits, favorites, product reviews, or the brand as a whole. Use this information to improve the service. Also, make sure that employees who deal with customers directly know to serve them effectively.
Why is Customer Loyalty important?
Irrespective of the size of a company, customer loyalty is essential. New customers are more difficult to convince because they do not have experience with the company’s services or goods. As such, the brand needs a comprehensive marketing funnel for them to buy. However, customers who have already shopped at a particular store are more accessible to sell because they know what to expect.
With that said, here are specific reasons why customer loyalty is critical:
- Regular customers spend more than new ones. They have a much higher average order value that increases with the duration of business activity with a brand.
- Existing customers have much higher conversion rates than new ones. • Loyal customers produce higher conversion rates. The average conversion rate of a loyal customer is 60% to 70%, while that of a new one is 5% to 20%.
- Increase profits. To enjoy better returns, brands must foster customer loyalty. Business profits increase by 25% to 95% when customer retention rates increase by only 5%.
- Retaining an existing customer is cheaper than getting a new one. It is cheaper to keep a present customer than to bring a new one on board. Studies show that receiving a first-time customer is five times more expensive than retaining a loyal one.
- Customer loyalty helps effective planning. Customer loyalty enables companies to predict growth more effectively, which aids in financial planning. Marketing teams can identify engaged customers who can be trusted, making it easy to make early decisions based on your budget.
- Loyal customers shop regularly. Given your good experience with a brand, repeat customers have a better chance of coming back. Also, your likelihood of making future purchases increases as you make more transactions.
- Regular customers spend more during the holidays. While all customers tend to spend more in busy holiday seasons, loyal customers tend to perform better.
- Although 82% of US adults say they are loyal to businesses, many businesses focus on getting new customers. Research shows that 44% of companies entirely pay courtesy to customer acquisition, while only 18% implement strategies to drive retention.
- One of the things varieties can focus on to build customer loyalty is meeting and exceeding their customers’ expectations. A staggering 89% of companies say the customer experience is critical to driving customer loyalty and improving retention.
Segment your customers
It’s hard to imagine a customer loyalty program without a personalized approach. It allows each client to feel special and cared for. To be in the right moment with the right message, use targeting. It will enable marketers to segment their mailing list based on age, gender, geographic location, occupation, preferences, interests, engagement, etc. Then they come up with different email campaigns with relevant offers for each group. In this way, each subscriber receives what they want. SendPulse offers ready-to-use segments based on user activities.
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