Apart from having a promising business model and efficient customer service, customer management and customer retention are equally crucial for a successful business enterprise. Several strategies have been used for a very long time to build customer loyalty. However, with the advent of modern technology, loyalty marketing has reached an entirely new level.
How to Build Customer Loyalty
These days, it takes a lot more than creative marketing and discount coupons to attract and retain clients. So here are some of the most influential business management ideas that can help build customer loyalty.
1. Discounts
Retailers these days have the latest analytics technology at their disposal. This enables them to give their customers discounts on regularly purchased products. Offering discounts is an excellent way to recognize and retain your clients. Offering discounts is also a great way to boost sales, especially during slow periods. Theatres and restaurants often offer discounts on weekdays. This enhances their sales and helps create a loyal customer base.
2. Rewards
You can offer rewards to your customers by either making your customers work toward it or by simply surprising them. This not only makes your customers aspire for more but also makes it highly likely for them to return. Reports can also be in the form of unexpected offers like free shipping.
On the other hand, if you are making your customers work for it, try to keep it simple. Your customers should be able to redeem their points quickly and have updated information about their rewards. You can also include an expiration date for the rewards to encourage your customers to purchase before a deadline.
3. Referrals
Referral programs are effective methods to reward your existing clients and gain new customers. Something as simple as 'Refer a Friend' or 'Give $10 and Get $10' can make your loyal customers recommend your company/organization to their friends. Social media could also be utilized for this purpose. If one of your loyal customers likes a particular post, you can send them a unique link that is exclusive to them and through which they can promote your company or product.
Apart from giving you multiple opportunities to share your love and appreciation, it enables you to be creative. For example, if you recommend a Casper mattress to a friend, you will receive a gift voucher and 10% off your next purchase as an incentive when your friend buys something. That makes it a win-win situation for everyone.
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4. Loyalty Programs
One of the popular methods to build customer loyalty is loyalty programs. Modern-day loyalty programs offer much more than reward points. Starbucks can be an ideal case study for this. With the help of their mobile app, they award you two stars for every dollar you spend under the Gold Level tier. You can collect bonus stars if you make specific purchases for several days.
Due to the latest loyalty program systems, retailers also provide points that can be redeemed with partner companies. For example, airline reward programs can redeem points at specific car rentals or restaurants. By using customer relationship management (CRM) systems, you can create personalized loyalty programs that take care of your unique requirements and target your customer base.
5. Feedback
If the customer finds that a company values their feedback, it gives them the impression that the company is trying to serve them in the best way possible. While there are many methods to request feedback, the most effective is to ask for it immediately after the customer interaction. This also means that you must make the feedback request simple, quick, and hassle-free so that the customer feels at ease while sharing their thoughts.
6. Reviews
What makes reviews particularly vital is that they come from real people who wish to share their experiences willingly. Therefore, they are used mainly by those not sure about your company. Hence, reviews can not only help you in turning frequent shoppers into long-term customers but also gives you an opportunity to transform loyal customers into brand advocates.
You can use google or social media to request reviews. You must also make it a habit to respond to both good and bad reviews. This shows that you are paying attention to what others are saying and using those words to improve your services.
7. Honesty
Mistakes can still happen even after taking all the necessary steps and performing all your duties sincerely. However, what may set you apart is your reaction to that mistake. You can control a lot of damage by acknowledging your mistake and by being honest about your errors. On the other hand, if you ignore or deny your mistake, customers are likely to lose their sense of trust in your company and may also share their negative experiences with their friends and family members.
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8. Customer's Language
The language of the customer plays an important role. Firstly, if you deal in your customers' native language, more than 75% of them are likely to make a purchase. Similar is the case with customer service. By interacting with your customers in their native language, you acquire more profound insights about them and come across as a company that values its clients.
Secondly, using your customer's native language can make the interaction more relatable, comprehensive, and friendly. This not only gives you an idea about your customer base but can also give you an idea of how your products are performing.
9. Availability
Due to multiple online avenues, customers have several ways of reaching out to you. However, as a company, you must make sure that someone is always available to listen to your clients. Whether via e-mail, Facebook, Instagram, or even an online chatbot, someone must be available to respond in real time or at least as soon as possible. To have streamlined communications, you can also have scripts so that you can handle any type of interaction.
10. Engagement
Regardless of the kind of business, your most loyal customers are the ones who are also the most engaged. Companies that have stronger engagement strategies can retain nearly 90% of their customers. Some of the most popular yet effective ways to boost customer engagement include:
- Creating a community of customers where they can connect and share their opinions.
- Marketing your content in an entertaining and informative manner.
- Using different mediums like social media content or infographics.
- Developing an authentic and approachable brand voice.
Apart from the methods mentioned above, being kind, warm, and approachable can also increase customer loyalty. You must never take your clients for granted. Try to keep it direct, simple, and easy, and you will automatically find an increase in the numbers.
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