The 101 Guide to Customer Loyalty

The 101 guide to customer loyalty

Earning customer’s loyalty is not easy. Customers are driven by their own goals and their loyalty towards the other brands. If you want to achieve their trust, you need a successful loyalty program. In this guide, you will discover everything you need to know about starting a successful loyalty program for your business.

Loyalty. Loyalty is a sense of trust between two parties. You expect loyalty from your spouse, friends, or even the employees. Similarly, you want your paying customers to be loyal to your brand. Ever thought about it before? Yes, you did. Every business wants loyal customers, ones who keep buying and keep coming back to a brand. Customer loyalty comes into the picture when you start valuing your best customers.

Customer loyalty is all about encouraging your loyal customers to stay committed to a brand by applying different tactics. A study says that it costs five times more to earn new customers than to retain existing customers. Hence, investing in a customer loyalty program is the best option for small businesses for retaining loyal customers. Why invest in Customer Loyalty, you may ask? Well, it has many benefits such as – increased sales, better customer retention, and increased competitive advantage.

Let’s discuss more:

Study Your Customers

Don’t you wanna know your customers? Of course, you do. Studying your customer is the first step towards building brand loyalty. You will know the intricate details of a customer’s behavior using a CRM system, such as their behavior on different occasions, Are they redeeming points or not? You will also know if your loyalty program is a success or not? You get answers to these questions by studying your customers through Customer Analytics.
For example, Adidas, a footwear retail brand has been providing tailor-made digital experiences to its customers in recent years. It is because they recognized that customers are shopping more online rather than from a store. Moving from a brick and mortar to a digital model was a big initiative taken by the brand, which turned out to be highly successful.

Thereby focus on providing a personalized experience to the customers for building brand loyalty.

Make your Loyalty Program OmniChannel

Tune in with your customers’ needs by introducing an omnichannel customer loyalty program – One of the best ways to connect with customers. Your customers can easily access your loyalty programs using the omnichannel platform. It allows enhancing the customer experience and provides different ways to interact with customers. It increases customer satisfaction. They feel engaged and valued while interacting with the brand. Always adding new tools to the platform for better interaction such as live chats, social media engagement, etc.

Don’t Give into your Competition – Stand Out

Focus on customers and not the competition. In this way, you will be able to think innovatively, and you will have a better understanding of your business. Concentrate on becoming the best in the eyes of your customers to gain their trust and commitment. Yes, it is important to keep track of the market but make sure you are not wasting your time doing something that is not a fit for your business. Keep in mind that every positive review, referral, and purchase leads to customer loyalty. Give weightage to these areas while building a customer loyalty program for your business.

Meaningful Customer Interactions

One bad experience can ruin customer experience forever. It happens all the time. Whether it is through customer service or any other engagement channel, positive communication is important for a brand. Whenever a customer interacts, they should feel delighted.

Always listen to the customers – what they are saying, but most importantly value their opinions. If they sense that their feedback or interactions are not appreciated, they might shift to your competitors.

When McDonald’s suffered a decline in sales, they planned to turn things around by listening to their customers. Based on customer feedback, the brand came with a simple menu, improved order accuracy, and personalization. As a result, they received an amazing response from the customers and lifetime brand loyalty.

Exceptional Customer Experience

Research shows more than two-thirds of businesses now considering customer experience a differentiator factor in building loyalty. Amazing!

We all know the difference between a good and an exceptional customer experience. For example, those smiling faces and ready to assist staff at a retail store are a part of a customer experience. When a customer feels special and delighted while interacting with a brand, no matter if it is a digital medium or an in store, it counts in customer experience. In other words, the best CX is when a customer reaches their ideal expectations with as little friction as possible.

For example, ‘Ola Select membership program – offering no peak pricing, priority booking, and many other benefits to members. It enhances customer experience, especially for those customers who commute by cab to work. A Better customer experience, better retention, and better loyalty. What’s better? Customers do not mind paying the extra price for it!

Always remember, deliver what you promise sometimes, you over-deliver and delight a customer too! You create a bad customer experience if you fail to live up to the expectations.

Reward your Customers

Rewards always work. The concept of giving rewards to customers has been there for a long time. Traditional business owners rewarded their customers in many different ways, giving them special treatment and benefits from time to time. Brands should learn how to reward customers and encourage them to stay committed to the brand. Today with the availability of multiple channels, businesses can reward customers in many ways – giveaways, freebies, discounts, building engagement, new product trials, etc. A reward program encourages customers to stick with a brand for a longer time. They expect more rewards in return and are waiting to be delighted in the future. Don’t be afraid of rewarding your customers, they would love to come back. Check out theInnovative ways to reward your customers

Be Consistent in your Approach

If you want to be successful with your loyalty program trends, be consistent in your approach. There is a reason why big franchises like McDonald’s are successful – they focus on consistency. Customers expect something from a brand every time they purchase, whether it’s an online platform or a store. When brands offer consistency through products and service, there is a good chance customer are likely to stay committed.

For example, if you want an ice cream from Baskin robbins, you can count on them to be open and deliver ice cream of your choice at all times (unless it’s Sunday). After several visits, you will begin to trust the brand and would prefer to stay committed because of this consistency.

To Wrap Up

Customer loyalty might seem like a new trend but it has been there for decades. Traditional businesses adopted a different approach to gain loyalty from their customers. But they were doing the same thing – encouraging their customer to stay committed to their business.

Today businesses have an advantage, they can reach customers at the tip of a finger using different digital platforms. So whether you are starting with a new loyalty program or already running one, keep these points in mind to get successful and also consider taking help from loyalty programs companies for better results. Your focus should be on offering a unique experience to your customers every time they buy, interact or explore the brand. They will love to stick around.

Start Your Customer Loyalty Program journey with Froogal

Customer loyalty is directly tied to sales and profits. Then why not have a loyalty program for your business that promises everything best for you and your customers?

Let us help you start with your first loyalty program. One of the best customer loyalty companies in India, our loyalty experts will support your business at every stage of the development and the management of a loyalty program.

What are you waiting for? Talk to our loyalty expert now.