Customer loyalty is declining. Today’s consumers are more willing to try different brands; for them, it is now easier than ever to explore a gamut of options online and switch to a competitor. And gaining new customers has become even harder. It costs more to acquire new customers than to retain the existing ones, so it makes good business sense to keep current customers satisfied.
A large loyal customer base results increased profits. According to Bain & Company, when there is an increase in customer retention rates by 5 percent, profits increases by 25 percent to 95 percent. Loyal customers also help spread the word about your company. There are plenty of advantages of having loyal customers, but in the ever-changing market and shifting customer choices, it is difficult to maintain customer loyalty.
So, how do you keep your customers coming back? Here are a few suggestions to improve customer loyalty in your business.
Find a Way to Offer Solid Customer Experience
You must make a positive impact with a solid customer experience so that customers remain loyal to your company for a long time. Making them feel extra special is the key to retaining them. Instead of using regular incentives such as discounts, free shipping or coupons, think of developing a deeper connection with your long-time customers. You can do that by offering experiential rewards, which will give them a one-of-a-kind, memorable experience and make them feel valued. Experiential rewards go beyond transactions and make customers feel like they are part of a special group. For example, exclusive or early access to a new product, service or event or sending a personalized message with a special discount on birthdays.
Ask for Customer Feedback and Show Them Proof
Engage with your customers by asking for their feedback. It will make them feel important and you will know where you can improve. It will enable you to offer them a much better experience next time. Don’t just collect feedback — you have to implement their valid suggestions and then inform the customers about the changes you have made based on their feedback. You can get their feedback by e-mailing them survey forms or embedding a pop-up survey on your website, asking them for reviews and testimonials. You can also collect customer feedback by monitoring what customers are saying about your brand on social media. Customers are most likely to repeat their purchase if they think that you value their opinions.
Invest in the Right CRM System
An agile customer relationship management system (CRM) can also help keep customers loyal to your business. It enables you to maintain an interactive communication channel with your customers. You also get valuable insights by analyzing data stored inside a CRM database, which you can leverage to drive better customer relationships. The data also allows you to provide better service to your customers and send relevant and valuable information to them. Regular personalized communication keeps customers coming back for more.
Always Engage With Customers
Customer loyalty is important for the continued success of your business. So, you must identify effective ways to engage with customers and make them feel valued. Leverage customer data to make your message personalized, which will make customers feel important.
