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How to Build Customer Loyalty in 10 Ways: Best Practices

Published 08 May 2024
Last updated 10 May 2024
How to Build Customer Loyalty
How to Build Customer Loyalty in 10 Ways: Best Practices

Building customer loyalty is a key factor in the success of any business. Loyal customers spend more throughout their relationship with a company and are more likely to recommend a company’s products or services to their friends and family. But how to build customer loyalty?

This article will explore the top 10 ways to enhance customer loyalty and keep your customers coming back for more.

What is customer loyalty?

Customer loyalty means customers are likely to keep buying from a particular company or brand because they are happy with what they have received and their overall experience with the company.

This loyalty is shown by providing consistent support and adherence to the brand. Companies try to earn loyalty by offering good products and services and being helpful to customers.

Loyal customers are valuable to a company because they are likely to buy again and recommend the company to others.

Why is it important to gain customer loyalty?

Building customer loyalty is essential for businesses for several reasons:

  • Increased customer retention: Customers loyal to a company are more likely to continue doing business with it over time, resulting in increased customer retention. The company may see a more consistent revenue stream as a result.
  • Improved customer lifetime value: Once a customer has become loyal to a company, it is more likely to spend more throughout its relationship, which adds to the customer’s lifetime value.
  • Positive word-of-mouth: Loyal customers are likelier to recommend a company’s products or services to their friends and family, leading to increased brand awareness and new customers.
  • Cost savings: It is generally less expensive to retain an existing customer than to acquire a new one. Loyalty programs can help to reduce churn or the rate at which customers stop doing business with a company.
  • Increased customer satisfaction: Loyalty programs can help to create a better customer experience, leading to increased customer satisfaction. This can, in turn, lead to increased loyalty.

What are the factors that determined customer loyalty?

Customer loyalty is critical because it brings many benefits to the business. Unfortunately, getting the loyalty takes work. Several factors affect customer loyalty, namely:

  • Satisfaction: Customer satisfaction is related to how customers are satisfied with a product or business service.
  • Emotional bonding: A customer’s emotional attachment to a product can affect loyalty.
  • Trust: Customer trust in a brand can influence them to buy other products offered by that brand.
  • Choice reduction and habit: The ease of obtaining products can provide a sense of comfort to customers.
  • History: A memorable experience between a business and a customer will be an additional point for customers to reminisce about or create the same experience by buying a product.

Also Read: How to Increase Customer Satisfaction? – A Guide

How to build customer loyalty?

1. Exceed customer expectations by providing superior services

The first thing first to increase customer loyalty is to provide more service. Where to make customers feel your service exceeds their expectations. And always do what you say.

For example, if you escalate a customer complaint with a duration of 1×24 hours, try to finish it before the allotted time. Want to look far beyond expectations? Finish in two hours. Another example is if someone calls you and leaves a message, call them back the same day.

Service exceeding expectations is significant in increasing customer loyalty. By constantly exceeding expectations, your loyal customers will turn into your brand evangelists and share their positive experiences with others.

2. Personalize the customer experience

Demonstrating to your customers that you value them and their needs is essential to building customer loyalty.

You can do this in many ways, including personalized communication, tailored recommendations, and recognizing their preferences.

Also Read: Understanding Customer Experience – An Easy Guide

3. Develop closer relationships

There is an old saying you do business with people you trust. With so much competition today, building relationships with your customers is essential. How? You can maintain and develop a relationship through email marketing.

You can do this by welcoming new customers with a welcoming email. Then, within a month, you keep in touch with customers several times through a newsletter or email containing promotions.

Your email newsletter is a great place to offer tips. If you are a restaurant, offer recipes. If you are a healthcare provider, provide health tips. Clothing store? Offer fashion advice, or are you a B2B business person? Offer the tips your clients need.

The key is to manage customer relationships and forget about hard selling for a moment. You are building a long-term relationship by building soft selling through customer relationships. Email marketing is also helpful for keeping your business in the spotlight.

4. Build customer trust

Social proof can help you build trust and increase customer loyalty. In this digital era, we can see what people do all the time. It’s hard not to use social media.

Due to the advent of social media, social proof is more important than ever. Your customers love to see how people respond to or review your company and how they interact with you.

It will make them feel good when you, as a business, have positive experiences with other customers.

Here are some ways for you to get social proof to increase customer loyalty:

  • Become an expert in your field and share relevant content.
  • Endorsement collaboration with influencers both locally and overseas.
  • Encourage users to leave reviews on Facebook or Google.
  • Invite people to join your Facebook page and encourage your followers to do the same.

5. Offer exclusive perks or benefits

The first way to increase customer loyalty is to offer exclusive perks or benefits, such as gifts or discounts. Give your customers a reason to come back.

You can offer them incentives such as applying points for purchases. Then these points can be exchanged for specific items, offer coupons, and much more.

Your loyal customers are crucial to your retention rate, and you need to be creative when rewarding your loyal customers. Finding the best way to reward customers will make them run to your competitors.

6. Become an expert

Let’s say you own a restaurant, and your customers have questions about how to make a medium-rare steak to perfection.

When the question arises, it’s your golden opportunity to shine. If you know the finer points of steak making and can answer them well, they’ll see you as the expert.

Customers will be more likely to return because you spend your time talking to them, and they know you know what you’re talking about.

You can also show your customers that you are an expert by creating how-to videos, writing blog posts, and writing informative emails and social media posts.

7. Seek customer feedback and act on it

Nobody wants to lose customers. It’s a relief to see customers returning again and again because you know you’re doing something right. One way to increase consumer loyalty and reduce customer churn is to survey customer feedback.

Not only does it make your customers feel valued, but customers can also tell them what you’ve done well and what you need to improve on. This can help you deal with negative customer reviews.

Customer surveys can be conducted several times a year. That way, you can make various adjustments to business services after considering customer feedback. You can use advanced features like WA blast to send customer surveys to multiple contacts easily.

8. Improve product quality

After you get customer feedback, be sure to fix it by improving product quality. In addition, you need to carry out regular checks so that the quality of your product does not decrease.

Because decreased product quality can disappoint customers and cause them to switch to competitors, in contrast, with improved product quality, loyal customers also feel free to recommend or add additional marketing to their colleagues.

9. Build a strong brand

Maintaining a strong, positive brand reputation is crucial for inspiring customer loyalty.

Several key components to building and maintaining a positive brand reputation include consistent branding, clear messaging, and delivering on your brand promises.

10. Offer a loyalty program

The last way to increase customer loyalty is to offer a loyalty program. Usually, businesses use the membership method. The membership program provides many benefits, such as discounts or other special services.

This certainly makes customers interested and feel benefited. Therefore, the most effective way to increase customer loyalty.

Successful examples of customer loyalty

Here are a few examples of successful customer loyalty programs:

Starbucks Reward

Successful examples of customer loyalty: Starbucks Reward

Starbucks Rewards is an excellent example of a customer loyalty program that has successfully built customer loyalty.

The program rewards customers for their purchases by offering them points that can be redeemed for free drinks, food items, and other perks.

The program also offers personalized recommendations and special offers to members.

By offering rewards and personalized experiences, Starbucks has been able to improve customer loyalty and drive repeat business.

Sephora Beauty Pass

Successful examples of customer loyalty: Sephora Beauty Pass

Sephora’s Beauty Pass is a customer loyalty program that rewards members for shopping at Sephora stores and online.

Members earn points for every dollar spent and can redeem those points for exclusive products, discounts, and other perks.

The program also provides members with personalized recommendations and services, such as makeup consultations and access to private events.

In addition, Beauty Pass members receive free standard shipping, returns, and early access to new products and sales.

This loyalty program has successfully increased customer loyalty and engagement, with many members reporting that they shop more frequently at Sephora and are more likely to try new products due to their membership.

Ready to improve customer loyalty? Get started today!

In conclusion, building customer loyalty is a key factor in the success of any business. By implementing the proven strategies above, businesses can create loyal customers who will continue to do business with them for the long term.

Ready to boost customer loyalty? Mekari Qontak can help. Our platform offers a range of tools, such as CRM, Omnichannel, and WhatsApp Business API, to help you retain customers and drive growth. Click here to learn more and sign up for a free trial today.

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