A Gartner study reveals that 80 percent of a company's revenue comes from 20% of its existing customers. A loyal customer will increase the revenues and morale of the entire organization. In a loyal customer, an organization directly sees its success. Due to this reason, building customer loyalty remains an integral part of an organization's marketing strategy. Listed here are three simple and fundamental steps to building customer loyalty:
Build Trust Through Listening
Listening attentively to the customers gives her the confidence to share feedback. The customer will also convey her perception of the brand or the organization when you listen to the customer. Engaging with the customer on a conversational platform may also lead to innovative ideas or reveal the gaps that need to be filled.
Listening builds trust because when a customer realizes that the organization gives a patient hearing to the concerns and feedback, a mutual relationship of trust begins. Trust is one of the most significant factors in retaining customers . Eventually, it converts into loyalty.
A customer buys a product or service while expecting an excellent experience. Let us understand it with the example of a car purchase. While the customer would come to you after thorough research, make sure that right from the test drive to the purchase make sure that the customer has an amazing experience. For the entire customer experience to be delightful and streamlined, different teams must coordinate with customers.
A customer would be expecting a delightful experience later as well in the aftermath of the purchase. Here the after-sales services and the sustained communication with the customer play an essential role. Always keep contact with the customers open. Reach out to your customers on special occasions to remind them that the organization cares. A long-lasting relationship can be built depending on the experience that you create for the customer. Let's go back to the example of cars, a satisfied customer who feels valued can be your loyal customer, and while deciding to purchase a second car, you would be the first choice.
Offer Loyalty Programs
Loyalty programs are an established way of retaining customers. The organizations employ such programs to reward the customers who come back. Incentives, discounts, schemes, vouchers, gifts, and redeemable coupons are part of a loyalty program. A customer feels a connection with the brand when offered a loyalty program.
After studying the customer purchase pattern and behavior, ensure that the loyalty program is tailored to the customer. Always remember to offer a genuine and valuable program to the customer. Practical does not mean expensive offerings. The customer would feel more engaged if the loyalty program is specially made, keeping her tastes and preferences in mind.
A well-designed loyalty program will give you an edge over competitors. Now you are no longer competing over price. Emotions drive customers to buy. Once you connect with the customer on an emotional level, it is easier to build customer loyalty. During financially strained or troubled times like COVID-19, the offer of incentives will strike a chord with the customer.
Retention is one of the most cost-effective ways of growing the enterprise and the brand. Striking an emotional connection with the customer on the foundation of an outstanding product or service, after-sales services, and open communication should go a long way in ensuring the retaining. A loyal customer will keep returning for your unique offerings and considerate approach.