Customer loyalty as a quick and easy website concept
A company with poor customer loyalty is like a bucket of holes. You can try to get it to work, but you'd better figure out how to mend the holes.
First things first: what is customer loyalty? As the name suggests, this is a process that will turn your existing customers into loyal buyers. Studies show that increasing your retention rate by 5% can increase your bottom line by up to 95%.
Focusing on loyalty strategies also brings other benefits. It helps you find out how satisfied your customers are and what may be turning them off. Retaining customers is also a lot cheaper than attracting new customers.
Not sure how to retain your customers? Here are seven tips to get you started.
1. Inform your customers
Once your customers are signed up, don't let them take care of themselves. Instead, help them learn how to use your products by providing the right resources.
The most common way to do this is by onboarding products. This provides simple tips and tutorials to guide new customers. You can achieve a similar effect by sending a series of lifecycle emails to all new customers.
Offer an online academy of training resources to customers who prefer self-service training. The academy can include live courses that anyone can sign up for. It is also worthwhile to conduct one-on-one training with an onboarding specialist.
2. Ensure mutuality in the event of surprises
The mutuality of surprises is one of the most effective ways to retain customers. You could even say that reciprocity is one of the things that makes the world go round.
Reciprocity is a simple concept: people react to how you treat them. If you are nice to someone, they will be nice to you too. Because of this, good service is a great way to get people to recommend your products.
The great thing about reciprocity is that it works even better when it comes as a surprise. Can you remember the last time someone did something nice for you out of the blue? Even if the gesture wasn't a big deal, it probably still made an impression on you.
So the trick is to surprise your customers every now and then with a nice gesture. You can send them loot or even a handwritten note. Although these may seem old-fashioned, they can still make your customers feel special.
3. Do loyalty programs right
Many companies use customer loyalty programs, but few of them are effective. The good news: there is a lot of research that can help you get everything right.
For example, did you know that loyalty programs are the most dangerous place to be? Customers exit loyalty cards twice as often if they start automatically as soon as they log in. We call this the doped progress effect.
Customers also love to be "Gold" or VIP members. The only catch is that there must be a class below them on the totem pole. If you are implementing a silver and gold class, you should see an increase in participation from gold members.
Creating a loyalty program is much easier with the right loyalty program software. This gives you all the tools you need to improve the customer experience.
4. Stand for something
Most customers don't feel like they have relationships with brands. Most of those who do this cite shared values as the primary reason for this relationship.
Why is this happening? Well, it's about a cognitive bias known as implicit selfishness. People have an unconscious preference for things that are similar to them. If you want loyal customers, you need to let them know what values you share.
Many companies shy away from this strategy because it is "political". This is a flawed mindset because all companies have political agendas. Make the most of the things you stand for by making them part of your brand.
5. Capture the impulse
Exciting improvements to your products can be a great source of inspiration. That said, your customers may not feel that way.
One thing that you can do to change this is to share your work. Let customers know what the latest versions of your products want from them. This also helps the existing customers as many of them may miss out on the new features.
Aside from the excitement, this dynamic is going to have an impact on your sales. Studies show that customers who are informed about new products are 30% more likely to buy them back or recommend them to others.
6. Focus on quality over speed
In an ideal world, your customer service would get perfect marks for both speed and quality. In reality, the latter is much more important than the former.
Customers are much more likely to engage with a brand if they find their service helpful. Because of this, more time with customers results in a more positive experience. If you speed them up, more problems will likely arise than they solve.
Fast service can also help, but only if you deliver what your customers want. If you don't, the customer is more likely to feel ignored. For example, people are more sensitive to price changes when they receive poor support.
7. Reward your lawyers
When it comes to retaining customers, loyalty is very important. Because of this, it is important to reward your trademark attorneys when you get the opportunity.
For example, let's say you see someone recommend your product on social media. Most of the time, the right thing to do is to respond to thank them. This shows that 1) you are paying attention and 2) your gesture means something to you.
For greater rewards, consider using a referral program. One way to do this is to give your customers a $ 100 Amazon Gift Card when they refer someone. Consider giving this new customer credit to their account as well.
Other loyalty strategies
You will find that none of the above loyalty strategies have links. This is by design – business relationships are very much like personal ones.
Here's one final tip for the road: delivering on your promises. Customer expectations are higher than ever, so it is not easy to impress them. The best way to stay competitive is to go beyond what your customers expect.
Want to learn more about how to have loyal customers? Are you trying to get the most out of your marketing strategy? Keep reading our business related content!