November 27, 2021
Did you know making new customers is five times more costly than the already existing one? That is where the importance of customer loyalty and retention comes to frame. Existing customers are more often the one who buys other products of the same brand. It Is only possible when the strong bond of loyalty connects you both.
In this way, you need to understand customer loyalty first. Here is the complete guide.
What is customer loyalty?
When a customer returns and repeatedly conducts business from you, it defines their customer loyalty towards your brand. It happens due to the remarkable experience of customers sharing with the brand. Your product and service that solved their past problems make them buy without pitching products as you have to in case of new customers.
These customers help you in many ways, such as growing your business faster. However, there is plenty of other importance too, let’s discuss.
Why customer loyalty is important?
Already existing customers are like already planted plants that need nourishment and attention only, which can help in the following ways:
Boosting share-of-wallet– The amount of money and time customers invest in a particular brand than their competitors is known as share-of-wallet, which increases customers’ loyalty to the brand.
Trust building– Customer loyalty is directly proportional to brand trust. So when your customers are loyal enough, they also talk about it socially, like tweeting and reviewing. Which ultimately catches other eyes too.
Power Word-of-mouth– We always say a loyal customer is like free cost marketing. When a customer is happy with any service or product, they recommend them to their friends & family.
You can call it Word-of-mouth marketing. So, when customer loyalty has this much importance, you should also know how to maintain it. Keep reading.
How to maintain customer loyalty?
Personalize customer experience- They can’t ask for it like offline shops, but you can offer them, anyway. A time-served customer expects attention in the shape of best deals than others. You can make them feel special with these offers:
- Better sale
- Rewards
- Free deliveries
- Special offer & discounts
Time to time loyalty programs– Free coupons, rewards, merchandise, or even advance released products are some of the offerings of loyalty programs that could be divided into many types such as:
- Valued-based
- Point-based
- Paid-based
- Game-based
- Tiered-based
Useful customer community building– A buyer influences with their same group of age, social status, or interest than any business social media, forms, or review, so make sure they are offering them the same.
Are you getting customer loyalty enough?
To measure your customer loyalty, you can use some common matrices, here they are:
- Social media engagement
- Referral driven traffic
- purchase habits
- Negative churn
- Customer retention rate
All these parameters of how loyal customers are to your brand. Their likes, comments, and shares define how much and how far your social media engagements are going. When you check for referral traffic from some trustful source like Google Analytics, it shows how much they share your products or services apart from social media.
Purchasing habits take you under the hood of their selling process while selling the further pitch. Negative churn helps to measure the customer loss that needs improvement. Last but not least, the customer retention rate will help you measure how successful you are marketing.
How NearCustomers help?
We at NearCustomers, boost customer loyalty through programs. Today, when brands are making every single effort to gain engagement and retain customer loyalty. Businesses should understand that only loyal customers will spend more, create brand advocates, offer competitive advantages, engage more, and improve the in-store experience.
Looking for the same advantages? Contact us.
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