Updated: Jan 20
Five key steps you need to keep building customer loyalty
Loyal customers are your most profitable clients and the most effective advertisements you can have for your brand- this is an even greater trend after the pandemic. Things have certainly gone digital, but how we learn and trust products may be more similar.
Again, retaining customers is much cheaper, as 6x cheaper, than acquiring new ones. Imagine paying less for online ads for your eCommerce business because your clients are already doing most of the promotions for your brand. Yes, that happens! Traditionally, word-of-the-mouth advertising is one of the most classic and organic marketing tactics. Its digital equivalent is the online posts and content sharing on social media. That is why companies today try to develop marketing stunts with famous people to get their brands and products trending. Influencers on Instagram and Tik Tok are today's word-of-mouth marketers.
Loyal customers easily relate to your brand. And because of this kind of customer engagement, you get to collect more feedback from them. The more your consumers trust your brand, the more they would be willing to talk, or rather, post about it. Use this data to act immediately and reward them for it with a discount.
And though Acquisition is more expensive than Retention, this does not mean that you would stop getting new clients. It is all about creating balance and knowing the perfect timing for a customer jumping from one stage to the next. It's cool watching this in a dashboard.
Increased customer loyalty = higher retention rate
The most fundamental ways to increase customer loyalty are the following:
1. Prioritize your customers by providing an excellent customer experience
Customer experience is your #1 priority. Optimize existing customer journeys and explore how to cross different channels for new promotions. Always provide competitive customer service for your consumers. You need to take good care of them and maintain good and valuable communication with them as they interact with your product.
2. Reward your loyal customers
Show your gratitude and give back! Loyal customers are a big part of your business' success. Create a loyalty or membership program and offer special discounts exclusively to them. Make them feel special, and they will surely keep coming back to you. 82% of consumers now belong to at least one loyalty program in the post-pandemic world.
3. Always gather customer data and feedback
By now, you should know how important data is to every business, despite all the hype around collecting behavioral analytics. Collect as much data as possible from as many channels as you can and make sure to maximize this data by using AI-powered marketing tools and robust cloud-based customer data platforms (CDP).
4. Treat your employees well
This action is probably something that a lot of companies fail to do. Some companies are so eager to succeed that they fail to recognize and appreciate their business' driving force. You must create a personal relationship with your employees first so they may be able to do the same with your consumers. Build the customer-focused culture from within.
5. Be consistent
Be it with your marketing efforts, content, or customer engagement, and you can only achieve results if you continuously perform your best in growing your business and connecting to your customers. Understand where in the buying journey your customers are, so your messaging is continuous. As mentioned in the beginning, it is about consistency.
Let data drive your loyalty programs
Today, one of the most powerful and efficient marketing tools is AI-enabled customer data platforms that turn your customers' profiles into unique segments. The customer data platform uses AI to develop targeted content for the appropriate audience. Data scientists and marketing data analysts, can build their own machine learning models and do clustering. VIEWN's powerful analytics engine analyzes volumes of available information gathered from all channels, transforming it into segments and personas used in cost-effective yet effective campaigns. Personas can integrate factors that weren't considered before and can cut across segments. Using personas can give you a different axis to slice your customer data and build more personalized campaigns and target audiences.
It's easy to get caught up in the idea that automating your customer experience will be all peace, love, and happiness. But don't forget about key metrics like what drives customers' behavior--and make sure you're keeping an eye on it! Collecting data is just the beginning of the customer-centric journey. There is an opportunity for you if they need more attention than before (perhaps because their needs have changed). Use insights from a CDP for actionable ideas and tasks so you can keep those loyal fans happy.