Ways to Earn & Build Customer Loyalty

Customer Loyalty

The goal of any big or small business is to never lose customers. And the numbers offer a compelling reason for small businesses to make sure loyal customers keep coming back. Statistics show that 60% of a company’s business comes from repeat, loyal customers. A 10% increase in customer retention can produce profits of up to 95%.

The key is to not only gain customer loyalty but also keep that customer relationship strong. After all, lowering your churn rate, or the percentage of customers that stop using your business during a certain period of time, by 5% can increase your profitability by up to 120%.

So how do you measure customer loyalty? 

A simple way to do this is to look at a customer’s lifetime purchases in your database. The number of purchases is more important than the amount of money spent; even if they don’t spend a lot on each purchase, a loyal customer will likely spend more over time than a one-off big spender.

Here are ways to earn and build a loyal customer base for your business:

  1. Communication
    As a retailer you need to be accessible to your customers on their terms. Determine what works best for your customers and ensure you are properly set up on those outlets. Whether it’s email, phone, text messaging, web chat, social media, or a combination, their ability to communicate with you quickly and easily will build trust.
  2. Play to your strengths and values
    What does your business do best? What are your unique offerings? What do you value most? Your answers to these questions will help you, as a retailer, frame your brand, which is an important part of attracting loyal customers. To really connect with buyers, you have to stay true to your brand and focus on what you do best. Be a constant in your market—a business that consumers can always rely on to deliver.

You know what they say: “Don’t fix what isn’t broken.” Unless you are having trouble attracting and retaining customers, don’t switch up your offerings or become unrecognizable as a brand.

  1. Developing Referral Programs
    Referral programs are like a customer loyalty program, but with a twist. In referral programs, customers get rewarded for making repeated purchases and for referring new customers to your business. This is a win-win situation for both you and the customer because they get a reward and you get a new one. This way, you can gain the loyalty of your customers while growing your customer base.
  1. Ask for Reviews
    Reviews are golden because they are authentic testimonials from real people. Someone who is unsure of whether or not they should buy from you will check reviews to see other people’s experiences with your company and decide from there if they want to buy from you. Collecting reviews is a great way to help shoppers turn into long-term customers. It’s also an opportunity to turn your happy customers into brand advocates. You can request Google or social media reviews through email and maybe even offer an incentive for completed reviews.

Don’t forget: If a customer shares a review, you should respond to it, whether it’s good or bad. This shows that you’re paying attention to what people are saying about you, and you can use the feedback as a way to improve.

In conclusion, building customer loyalty is really about building relationships. As with any relationship, it takes time and effort to establish trust and ongoing investment to keep the relationship afloat. Loyalty and retention can’t just be bought; they have to be earned. To improve customer loyalty, look at your customer experience and do everything you can to make your customers’ lives easier and hopefully more enjoyable.

By Carolyne Rabut
Content Marketing – CompuLynx


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