It’s true. Customer loyalty is a long-term plan. It requires doing the work to nurture the customers you have and building strong relationships that reinforce their trust in the value of your brand. It also requires taking the steps to attract new customers that can be added to that lifetime value sequence. That’s loyalty on a high level which is hard to maintain if the right steps aren’t implemented.
Why is customer loyalty so important?
First, let’s talk about customer loyalty. What does it mean?
Customer loyalty is the by-product of a customer being satisfied with your brand, services, and products. The customer experience is crucial as is the amount of perceived value your brand has with the customer. In essence, it’s how you should measure the likelihood of customers wanting to continue to support your brand and moving far beyond customer engagement. Building customer loyalty doesn’t happen overnight; it’s something that occurs over time.
Customer loyalty is important because loyal customers spend 67% more on services and products than new customers. You may not have as many loyal customers as you do new customers, but the bulk of your income usually comes from your VIPs.
Not convinced? Let’s break down the specific benefits loyal customers provide to businesses.
Repeat business
Your loyal customers will continue to come back for a number of reasons. They may love certain products, enjoy your customer service, or want to know more about new offerings. They stay because of the experience they have had with your brand.
Revenue
Returning customers are spending their money with you because of the trust and relationship you’ve developed with them. They trust your brand, they love your products, and they know they’ll receive top-notch service. This did not occur overnight, but your company proved your worth and value to them which in turn will pay off in consistent revenue.
Development of brand ambassadors
Your loyal customers will tell others about your products and services on their own because they’re just that happy with the experience you created. You’ve done more than just sold them something – you’ve made their lives better and they’ll remember that in conversations with their friends and family.
Keeps competition away
Your loyal customers keep their dollars flowing into your brand, which means they aren’t being spent with your competitors. This is one of the strongest reasons to have amazing customer loyalty programs with rewards and incentives that enhance their experience while demonstrating your appreciation for them.
Feedback
Your loyal customers will be the people who respond to surveys and other information from your marketing department. They want you to improve and grow, so they give their full support and feedback when needed. This is also how you keep offering great products and services.
Customer lifetime value (CLV) is the total worth of a customer over the entire business relationship. This goes beyond them spending money and encompasses their experience and perception of the value you offer. This is important when developing effective reward programs, and helps determine your upsells, return visits, and more.
Ways to Build Customer Loyalty
If you’re looking for effective ways to build customer loyalty, it’s important to start with the different types of customer rewards programs and company rewards programs you can offer. There are points-based programs, tiered and threshold-spend programs, punch-card, and fee-paying programs – just to name a few. Here are a few ways to build strong customer loyalty:
Special discounts
Providing discounts on products your customers purchase on a consistent basis shows them you are paying attention to what they want, need, and like. This helps retain their business. With discounts, you can also keep them buying even when things get slow. Having special days with deals keeps traffic and revenue flowing year-round.
Exclusive items
Providing exclusive items no one else can get shows how grateful you are to have the customer as part of your brand journey. It shows you care about them and want them to feel special as part of their customer experience.
Reward programs
Rewards programs with ways to accumulate and redeem points for discounts or free products and services make a difference. Juice Banking can assist with the tools you need to develop a robust rewards program that keeps customers engaged.
Subscription services
A subscription-based service keeps customers engaged for a certain time but also provides incentives that may not have been available anywhere else.
Remember their special days
Whether it’s a birthday, the anniversary of their first purchase with your brand, or something else, remembering those special days along with an incentive like a free gift means a lot.
Wish lists
Customers love being able to keep track of the items they want to eventually purchase. By offering an online wish list, they can refer back to the items or share them with family and friends who are shopping for gifts.
Partnerships
Partnering with another brand that can complement what you offer and help your customers save money goes a long way. For instance, getting a free mug from a partner brand when you use your loyalty points to purchase coffee.
Customers stay attached to brands that speak their language. Being transparent and honest builds and maintains an emotional connection with your customers. Remember – always show up and personalize as much as you can.
Are you ready to build a lasting customer loyalty program? The Customer Engagement and Revenue Growth blend from Juice Banking can help you put your plan into action. To find out more about how this solution can work wonders for your business, get started today.
