Customer loyalty describes an ongoing relationship between a business and its customers. It drives repeat purchases and encourages existing customers to choose your company over a competitor. Coming up with customer loyalty strategies to nurture these relationships is something that every business must do to engage with customers and keep them coming back.
People become loyal to a brand for many different reasons: excellent customer support, a positive experience with your brand or product, a sense of connection with your story, mission, or values, or having their expectations consistently met. It requires time and patience to build up your customers’ trust, and persistent efforts must be established to maintain it. But, when executed correctly, the results of customer loyalty strategies are far more successful than gaining new customers. In fact, acquiring new customers can cost 5-25X more than retaining an existing customer. (Harvard Business Review)
A loyal customer base increases profits, improves sales, and allows for sustainable growth. Carefully tailoring and executing your customer loyalty strategy to your buyers can help you not only retain existing customers, but also attract new ones, reduce turnover, and drive profits. Each business will have a unique customer loyalty strategy molded to fit the unique aspects of its services and customers.
Examples of successful customer loyalty strategies
My Starbucks Rewards: Using dedicated mobile apps to manage customer loyalty programs is pretty common nowadays, but when Starbucks initially launched My Starbucks Rewards, they were among the pioneers. This not only makes it easier on customers to purchase and pay without waiting, but you’re also collecting valuable data about their preferences that can be used for marketing purposes.
Sephora Beauty Insider: This traditional, points-based reward program allows customers to earn points for each purchase. The success of this customer loyalty strategy lies in the fact that customers can choose how to spend their points on special rewards in Sephora’s “Rewards Bazaar.”
Mirenesse: This beauty brand has elevated its customer loyalty strategy by introducing a special paid member tier, also known as the “gold” tier. In exchange for a $10 monthly membership, customers of this VIP tier get extra perks on top of basic rewards. This includes two points for every dollar spent, the ability to jump the queue, access to secret sales, and the chance to try out new products as part of a tester panel.
14 customer loyalty strategies to start implementing now
1. Solicit customer feedback
The most frequently used method to ask for customer feedback is by email, but you can also do this through SMS campaigns, reviewing live chat messages, conducting customer interviews, monitoring social media and other review platforms such as Yelp or your Google Business Profile, or including a post-purchase feedback option.
2. Celebrate loyal customers on social media
When customers know that you are actively resharing and reposting user-generated content, this encourages them to follow, tag your product in their posts, and engage with your content.
3. Offer a rewards program
Customer engagement is at the heart of every successful loyalty program. Modern consumers love rewards and are willing to spend more when a loyalty system is in place. The key here is to offer your customers something valuable enough for them to want to join your program. According to Bond Loyalty Report, the average household is involved in 13 loyalty programs but only active in 7. If you reward your customers, they will notice this and continue to support you. Just make the rewards worth it!
4. Create a human connection
Consumers don’t want to talk to a robot, and they certainly don’t want to feel like they aren’t being heard. Humanizing your brand and building a human connection in a digital world means recognizing that your customers are human beings and respecting them like one. Give them the support they deserve and watch your brand loyalty increase tenfold.
5. Consider a referral program
A referral program is a system that incentivizes previous customers to recommend your products to friends and family as a way to reach more people. This marketing strategy asks happy, loyal customers to become brand advocates and increases traffic through personal recommendations.
6. Store customer data
Having a thorough customer data management (CDM) system in place ensures that you are collecting only important information that complies with data regulations. Properly storing customer data and using it to your advantage allows you to meet your customers’ expectations in relation to personalized marketing communications and suggestions.
7. Make customer service a priority all across the board
Each touchpoint with your customers matters for their overall perception of your brand. This encompasses the entire customer journey from brand awareness to post-purchase and beyond. With a sales team on demand prepared to handle 24/7 support, it ensures that your customers are always being taken care of, which improves their perception of your business and keeps them coming back.
8. Consistently engage your customers with omnichannel efforts
Omnichannel support allows your business to achieve more availability, drive traffic and sales, and integrate digital touchpoints. Nowadays, customers like to connect their digital purchases to their in-store purchases. According to Google, omnichannel shoppers have a 30% higher lifetime value than those who shop using only one channel.
9. Share case studies and testimonials
When your customers spread the love for your business, this proves their loyalty. Those testimonials act as the gasoline for your reputation’s fire. Spread their positive, reassuring affirmations across your channels for new customers to see and read for themselves. 79% of shoppers say they trust online reviews as much as personal recommendations. (BrightLocal)
10. Invest in live chat operations
Customers expect support to be effective and efficient. Live chat support enables agents to help more people and provide solutions in real-time. Seamless, on-demand supportcan help to foster loyalty and retain more customers for longer. As an added bonus, live chat support creates upsell opportunities.
11. Improve overall CX
A good customer experience (CX) strategy should prioritize creating meaningful experiences for customers. If customers are happy with your services and you consistently meet their expectations, they will gladly continue to support your business. Improve your CX with a critical care plan.
12. Maintain brand voice with every touchpoint
A consistent brand voice projects and instills confidence in your company and influences purchasing decisions. It helps people to identify your brand across all of your omnichannel platforms. Your brand voice is a representation of your company, and customers will come to expect what they can receive from you.
13. Express gratitude
Making your customers feel seen, heard, and appreciated increases customer satisfaction and the customer experience. This leads to more profit, higher market share, and of course, increased loyal customers.
14. Give customers a reason to be loyal to your brand
There’s so much noise out there from thousands of businesses shouting for attention. Consumers have expectations, and meeting those expectations is one of the most important ways to turn new customers into loyal customers. Overall, customers remain loyal for many reasons but giving them the highest amount of value will inevitably increase your customer loyalty. How can you continue to bring value to your customers?
How we can help
Influx offers a range of diverse services that are targeted at customer support solutions, which frees up your time to focus more on high-priority tasks. We deliver fast and immediate solutions that trigger more leads, upsells, and loyal customers. Get started today!
