Did you know that attracting new customers costs you five times more than keeping existing customers does? And did you know that current consumers are 50% more likely than potential customers to try your new offer and pay 31% more?
Do you remember the last time you needed to purchase a computer? You probably had one before, and if you happen to be an Apple user, you probably will continue to be one. It doesn’t matter that they may require you to shell out some more money, they provided you with great customer service, security, easy-to-use, and durable machines!
This is due to the fact that you are loyal to Apple. Don’t worry, you aren’t alone. In their 2017 Customer Loyalty Engagement Index, Brand Keys recognized Apple as “the best representative of customer loyalty. Apple has the best enjoyment in laptop computers, tablets, smartphones, and online music.” It also has a whopping 87% of their customer-base being loyal to them!
You may now be wondering, what this customer loyalty is and why Apple is willing to invest heavily to retain their customers.
To put it simply, consumer loyalty is the ability of a customer to engage with or purchase, on an ongoing basis, from a particular brand. Loyalty may come from many factors. A loyal consumer, however, would typically associate favorable encounters with a brand, thereby enhancing their chances of making repeat transactions with that firm. Loyal clients pay 67% more than new clients on goods and services. While your most loyal consumers just make up 20% of your audience, up to 80% of your revenue is generated by them. It is 5x easier to ensure customer loyalty retention than acquire a new one. So, if you focus on existing customers, they’ll continue buying from you and will spend more over their lifetime with your company. The product of a business regularly satisfying and exceeding customer needs is customer loyalty.
This loyalty counts today, more than ever before, as the e-commerce marketplace becomes increasingly over-saturated. Continue reading for ways of winning customer loyalty!
Why are customer loyalty campaigns to retain customers important to companies?
Any statistic that is important for running a company is influenced by the value of customer loyalty. The company won’t thrive without pleased consumers who want to buy from you. New consumers seem to pay more to gain and don’t spend as much money as existing, repeat customers. It is important for company growth to have clients coming back for more. And that’s why it doesn’t work with short-term bonus grabs. For companies, loyal customers are just better: they help you prosper and they hold profits up.
Loyal customers drive repeated business. Satisfied and loyal consumers are more willing to fuel repeat sales, making the preservation of loyal customers key. It doesn’t matter whatever their motivation might be. They’re more likely to buy in larger amounts if a buyer enjoys and respects the consistency of your company and increases revenue. Loyal customers retained by your company become brand ambassadors of sorts by recommending you to friends and family via word-of-mouth marketing. Your competitors miss out on future sales as existing consumers invest money in the company. Every additional bill with you in effect is money not spent with your rival.
What are some factors influencing customer loyalty when shopping online?
Customers like to go back to companies that make them feel special and offer a sense of security. Taking responsibility for your actions, offering personalized services, having a great customer service platform, are some factors that help build customer loyalty to retain customers. It is important to accept orders instantly as often as possible. Your company must stay fresh by continually changing the look of your website and social media handles. Most importantly, always reward customers generously for being loyal to you. Letting your loyal customers know you value them goes a long way in retaining them.
What are some customer loyalty campaigns the e-marketplace can run to build value?
Here are some ways of creating customer loyalty. All of the suggested methods of winning customer loyalty have been done after analyzing factors that affect customer loyalty. Your e-commerce business can utilize a basic method based on points. This is arguably the approach of the most popular loyalty scheme in nature. Frequent customers receive credits, such as a coupon code, freebie, or some form of the exclusive deal, which turns into a type of incentive. However, where many enterprises fall under this approach, the relationship between points and real incentives is complicated and confounding.
You could also ask your consumers to pay an upfront fee for VIP advantages. Loyalty services are designed to break down walls between clients and the organization… So are we seriously asking you to levy a tax on them?
A one-time or annual charge that helps consumers to circumvent traditional shopping hurdles. It is potentially very useful for both companies and customers in certain situations. You may tailor a fee-based loyalty package to overcome certain unique challenges if you find reasons that can lead your consumers to leave.
Structuring a non-monetary service around the values of the clients is important. You need to recognize the beliefs and preferences of your target customers. This helps you to better understand your client, so you can inspire consumer satisfaction by targeting certain features.
Any company can offer exclusive coupons and discount codes by providing value in ways unrelated to money. Certain firms, however, can achieve more effectiveness in resonating with their target demographic. This can establish a special bond with consumers, promoting trust and loyalty.
To have all-inclusive deals, partner with another enterprise. Strategic customer loyalty alliances (aka alliance programs) can be a productive way to maintain clients and expand the business. What business will be a perfect match for a partnership? It comes down to truly knowing the daily lives, desires, and purchasing cycles of the clients.
You show them that you appreciate and care for their problems. Prioritize as you provide your clients with value that is important to them but goes beyond what your business alone can give them. Plus, it allows you to expand your network to meet the clients of your partners, too.
You should be just as gracious as your clients. Customer reward services may seem from the outside to be nothing more than a mechanism to get consumers to spend even more money. (Let’s face it sometimes we can all be cynics) That is why, from the others, loyalty services that are genuinely charitable stand out.
You’re doing it wrong if the loyalty scheme allows clients to pay a lot of money only to be compensated with meager discounts and samples. Instead, walk the walk and show clients how much you appreciate them by providing services that are so amazing that they will be missing out on a lot by not being a participant. Following the methods listed above will allow you to win customer loyalty in online shopping. Ensuring your customer is satisfied during online shopping is key.
Therefore, it is important to build a strong, value-based community for your consumers. Customers will still trust their co-workers more than they trust the business. The smallest mistake can be captured & uploaded for the world to see through social media, client review pages, forums, etc. But by managing a culture that facilitates client-to-customer experiences, you can turn this into a constructive one.