4 Strategies for Cultivating Customer Loyalty

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Customer loyalty is a powerful asset for any business. On average, existing customers spend 31% more than new ones, giving your revenue a massive boost. Naturally, when you create a brand that clients can fall in love with, you may see your growth skyrocket soon.

So how do you become the go-to brand for your customer base? Keep reading to learn four effective strategies for cultivating customer loyalty.

1. Respond to Complaints

Even businesses with the highest customer retention rates don’t satisfy clients 100% of the time. What separates them from other brands is their willingness to listen to, respond to, and act on customer complaints.

When you receive a complaint, first acknowledge what they have to say promptly. Customers want to have their opinions validated. And depending on the channel, they may want an initial response immediately (in-person or via phone), within an hour (on Twitter), or within three days (on review sites).

During this first response, initiate a conversation about how you can make things right. If a customer received a damaged product due to poor packaging, for example, you may send them a new item at no cost.

Regardless of whether your client responds, take broader action. Figure out how you can update your business processes to ensure the same issue never happens again. Using the same example, you might reevaluate your shipping materials or implement better quality control in your order fulfilment processes.

Once you’ve taken action, follow up once more to check if the client is satisfied with the solution. This can help you stand out from other companies to show that you care about their ongoing experience — not just about resolving a complaint.

2. Offer Incentives for Loyalty

Four in five U.S. consumers seek discounts and other offers throughout the buyer’s journey. Shoppers are incredibly deal-driven, so if your brand’s not offering competitive value, they might turn elsewhere.

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Offer incentives for customers who choose to shop with you time and time again. This could take the form of an official loyalty program, in which customers may get a product or service for free after a given number of purchases or a dollar amount spent. Or, immediately after a purchase, you could send clients a deal for a return visit.

Loyalty programs can open up new opportunities to re-engage clients, too. A majority (87%) of customers are willing to let brands monitor their activity, as long as they can get personalized rewards. With the data you gain from your program, you can provide even better customer experiences.

3. Offer Readily Available Support

When choosing a brand to shop with, 90% of customers consider customer support quality, and most consider service key for loyalty.

Making yourself easy to reach — and information about your brand and offerings easy to find— is key to building customer loyalty. Across marketing channels, make sure your contact information is highly visible and accessible.

To streamline your customer service, you can use chatbots, automated emails, and more to ensure your team members are readily available for those who need personalized support. A frequently asked questions page or complete knowledge base can further help your customers get help and make better shopping decisions, so they’re highly satisfied.

When working with customers one-on-one, offer empathy by practising active listening. This can help customers feel valued and help you pick up and act on their unique needs, pain points, and interests.

4. Be Honest About What You Can Offer

No business can be everything to everyone — and if you try to be, your customer satisfaction might take a hit. When consumers aren’t part of your target audience or need something outside of what you offer, you may not make them happy at all.

Be clear about who you serve and what you can and cannot do. For example, if you offer software for small businesses, your marketing shouldn’t be directed to enterprises. You’ll be able to focus your efforts on buyers who are most likely to become loyal customers.

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Similarly, it’s helpful to have a process in place to identify problem clients — for example, those who are likely to micromanage you or set their standards far too high.

But if a customer reaches out to you anyway but is a poor fit, don’t immediately shut them down. Explain what you can help with and what you can’t, then offer them strong alternate solutions for areas you can’t help with. They’ll be able to make the right decision for themselves.

At the same time, they’ll remember your brand for going the extra mile. They may not become customers, but they could still feel loyal enough to your brand that they’ll refer customers who are great fits in the future.

Strengthen Your Customer Base

A loyal customer can be incredibly valuable for your business. When you offer loyalty incentives, clarify what you do, and practice active listening for customers with complaints and questions, you can stand out from other brands. Cultivate customer loyalty by creating a brand experience that no one can beat.

 

Dan Matthews
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