Customer loyalty is a strategic business model which aims to encourage customers to keep making repeat purchases of a particular brand or product. Perhaps the most famous example of customer loyalty is Apple, which, according to a report by the Consumers Intelligence Report Partners(CIRP), has a loyalty rate of more than 90%.
Be Loyal To Your Customers
It should go without saying but you can’t expect customer loyalty without first showing loyalty to your customers. Many businesses fail in creating customer loyalty by focusing solely on finding new customers, instead of the customers they already have.
Instead of offering discounts for new customers, focus on how you can reward the existing ones. It is so easy to create a specific marketing campaign that offers discounts and rewards for those customers, without jeopardizing future growth.
Showing loyalty can also be separate from offering discounts or prizes and be a more personal touch. It is very easy for you to set up a system that reaches out to your customers on special occasions, like birthdays or religious events. This simple step shows your customers that you consider them to be more than just a financial benefit.
Perhaps the most obvious tip for inspiring lifelong loyalty is to create a loyalty program that encourages repeat customers. The most common loyalty program is the points system which rewards customers after each purchase. However, in this technological age, loyalty programs can be tailored made for exactly what your business needs.
There are now global companies, such as TCC Global, who specialise in building tailor made loyalty programs for a variety of businesses.
Focus On The Long Term
The very definition of customer loyalty states that it is the repeat purchases from customers over a long period of time. So, you should always plan for the long term and not get caught up with short term statistics.
The biggest mistake companies make is reducing the amount of attention they give to the oldest customers, which makes them feel like the company has forgotten about them.
Listen To Your Customers
A given for any company is to have a great customer service experience. However, it’s important that you also listen to your customers’ criticisms about how the business operates.
The most loyal of customers will have an emotional attachment to the company, so any criticisms they may have will come from a genuine place. They are sharing their opinion in order to improve your business, so please listen.
Pay Attention To Your Employees
In the same regard that customers wish to be listened to in return for their loyalty, many customers wish to be loyal to companies who they believe treat their employees well.
We have all seen companies who have taken a massive hit publicly due to their treatment of their employees and it has a detrimental effect on their bottom line. According to Forbes, 87% of customers’ affinity towards Starbucks is driven by the way it treats its employees.
Make Your Product Competitive
With all this talk of wanting customer loyalty and what customers look for, it all becomes void if your product isn’t as good as your competitors. Consumers will only go so far with their loyalty if your product doesn’t meet their requirements.
And there you have it – 6 essential tips for inspiring lifelong customer loyalty.