18 May The importance of customer loyalty for long-term success.
According to research by Emarsys, loyal customers were likely to return to brands and spend 31% higher compared to new customers. While attracting new customers is key to achieving profitable growth, maintaining connections with current clients is equally important. Thus here is the importance of customer loyalty for your long-term success.
What is customer loyalty?
Consumer loyalty is the willingness of a customer to consistently purchase the products and services of one business over others. They are not easily influenced by price or offer and prefer to repurchase the same excellent service provided by their usual choice. Customers who are devoted to your business are connected to you. They have trusted the company because it routinely meets or exceeds their expectations. Thus, your competitors are unlikely to be able to entice loyal consumers away from you, and they will always come to you when they have money to spend.
If you don’t want these consumer ties to fade away, you need to take care of them. Well-established companies make investments in their loyal clients to keep them coming back for more.
Why is customer loyalty essential to your business?
1. They ‘promote’ your business brand
Customers who are loyal to your business, don’t hesitate to spread the word about it. Brand advocacy produced through word-of-mouth marketing is extremely persuasive. For example, when friends and relatives suggest stores, services, or businesses, we believe them. Temkin Group reports that 77% of consumers would tell a friend about a brand after just one satisfying service. By supplementing your internal marketing initiatives and sales staff with these “mini-marketers,” they provide a valuable referral, add value for a friend or colleague, and you can potentially gain new clients while saving time and money.
Just like us, when making decisions about what to buy, we frequently believe both positive and negative customer reviews as well as other different kinds of user-generated content.
2. They tend to spend more.
Data from Invesp shows that repeat customers spend 67 percent more than new ones. Selling to new customers has a probability of between 5 and 20 percent, whereas selling to current customers has a probability of between 60 and 70 percent.
Customers who have dealt with you previously trust you to deliver high-quality goods and services at competitive prices with superior customer support. They frequently spend more money with you as a result of these factors. They might also purchase more of your standard-priced goods or your more expensive ones.
3. They give better feedback.
Your loyal customers don’t mind spending time sharing their opinions or any feedback. They believe that sharing their views with you will benefit your company. They are loyal to your service as they need it and do not want to fail.
As we realize how important feedback is. Here are some useful types of surveys you should try.
- Customer satisfaction survey.
- The customer needs a survey.
- Product feedback survey.
- Service quality survey.
How to maintain loyal customers?
1. Show them you care
Maintain contact. Don’t only approach clients with making sales. Reach out to a customer merely to say hello if it has been some time since you last heard from them. Even while a simple gesture like an email or a birthday greeting may not directly lead to a sale, it will help your company remain visible in consumers’ minds.
2. Loyalty program
Don’t treat your devoted consumers like strangers because they are in a relationship with your brand. Make a rewards scheme. Communicate as specifically as you can. Customers like personalized messages because they make them stand out in their inboxes and build confidence in the company. Several studies show that individualized communications, and email in particular, are beneficial. Research suggests that personalizing subject lines can boost open rates by 26%.
Another effective strategy for developing long-lasting relationships and increasing revenue is loyalty programs. The 2018 Bond Brand Loyalty Study states that 77% of consumers are more likely to remain with a company that offers a loyalty program.
3. Maintain your business quality.
Whether a customer supports your business again, will depend on how well they are treated and how their purchase goes. Thus, be sure to offer superb, and quality customer service.
It’s important to evaluate different types of user experience, such as;
These 4 points will help you to upgrade the quality of service you offer.
You got this! Good luck in maintaining your loyal customers.