Customer loyalty: find out why you should invest in this action

Customer loyalty happy customer

Customer loyalty: find out why you should invest in this action

Customer loyalty happy customer

Did you know that without customer loyalty your company could be losing money? Just by this revelation, you can already begin to get an idea of ​​the importance of Customer Loyalty for your business.

Of course, the first phase is to attract the customer, win them over and close the deal with them. But what about afterwards? Does it end at this stage?

When a company finds a way to build customer loyalty, it will not only make more money, but also improve its reputation in the market. And in many cases, one thing is linked to the other.

According to the author of the book “The Secret Language of Leardship”, Steve Denning, loyal customers can be considered a company’s greatest asset.

And more than 60 years ago, other authors, including Theodore Levitt, said that “the objective of business is to win and keep customers”.

Rest assured: this corporate behavior should not be restricted to large companies. Businesses of any size must have customer loyalty as a fundamental practice to achieve success.

Do you want to understand why customer loyalty matters?

But before we get into why, let’s understand what it means to build customer loyalty: it’s the act of turning customers into people who are loyal to your product, brand or service. It may seem obvious, but in practice it’s a little more complicated than that.

It represents a set of actions carried out by a company so that its consumers continue to “consume” frequently with its company, resisting the attacks of the competition.

It’s a way to make your brand so special by offering a service or product that the customer won’t even think about looking for the same options elsewhere.

Customer loyalty is a very important attitude that can lead companies to good financial health. Firstly, because it will meet the company's needs, revenue becomes predictable and more secure, and secondly, because it enables expansion.

Lower cost for companies

Remember that loyal customers cost companies much less than new customers. It may seem surprising, but it has been proven.

According to an Adobe study on ROI (Return on Investment) in marketing, the data showed that, in the attraction phase, a new customer costs the company 5 to 7 times more than retaining a customer.

These efforts to win customers are expensive and are not always successful, so it is important to work on customer relationships and loyalty.

For a loyal customer, it is much easier to sell again or do an upsell.

Loyal customers spend more

The average expenditure of those who are used to investing in a single brand is higher than those who are coming into contact with the product or service for the first time.

According to the book “The Marketing Revolution”, a 5% increase in customer retention (loyalty) rates can result in a 45% increase in a company’s accumulated profit over a 7-year period. And in some other cases, the percentages went well beyond that.

Precisely because loyal customers tend to spend more and constantly.

via GIPHY

Army of spokespeople and accurate feedback

Loyal customers no longer need to be convinced to buy, they buy again and again, and better yet, they become an instrument for spontaneously promoting your brand.

As they already trust the product or service, loyal customers tend to share the information with other people, recommending the brand to people they like or want to help, just by sharing something of value that they found.

For this very reason, they end up being a pole of attraction for new buyers, precisely because they spread a good image of the brand.

In the same Adobe study, the conversion rate of loyal customers is much higher than that of a new buyer. The possibility is that with a loyal customer there is a 9 times greater chance of closing a sale than with a first-time buyer.

For the same reason, loyal customers are also more likely to give more accurate feedback, having had successful purchasing experiences.

How to build customer loyalty?

In today's world, with intense digital transformation, where people are connected almost 24 hours a day, receiving a universe of information at all times, it is more than essential to invest in customer loyalty.

If you are not constantly showing your customers your advantages, your competitors will not be merciful. This means going beyond the limits of customer satisfaction, showing them that they are more than special and necessary.

And have no doubt: the customer, as they usually define more than 60% of their purchasing decisions virtually, searching for information about what they want on the internet, will end up giving in to whoever gives the best answers and provides the best purchasing and post-purchase experience.

But before you start pulling your hair out because you need to be constantly trying to attract customers, you need to think about some measures that will also help you build loyalty. Remember that “enchanting” your customer is a medium to long-term effort that needs to be ongoing to bear fruit.

Tips on how to retain customers

Customer management must be linked to profitability, of course, as all companies need financial health to survive.

The ideal is to seek out valuable customers, those who will be your partners and also help you in your success. To do this, it is important to provide them with a good shopping experience, which will help them become loyal to your brand.

Here are some strategies to build customer loyalty:

Focus on customer service and interaction

Imagine how you would like to be treated when searching for a service or product. Then, treat your loyal customers with the same distinction, always making them a VIP (very important person) in your company.

In addition to differentiated treatment, offer many communication channels with your company, through digital means, such as WhatsApp Business, social networks, such as Facebook and Instagram, Linkedin or another network that makes sense for your business, in addition, of course, to the essential telephone and website.

Your customer needs to know which channel they can use to ask questions, make recommendations, make criticisms, etc.

In other words, your brand needs to be interactive. The customer must feel that they are being heard by you and receiving your full attention.

Know your customer

When dealing with customers, listen to their expectations, understand their needs and resources. To do this, you need to be attentive and gather information using technology.

You can make use of intelligent information collection with marketing automation, for example.

This will allow you to track your customers' activities on social networks, create surveys and schedule actions aimed at them.

This way, you will be able to “guess your client’s desires” and do exactly what they expect.

Reward your customer

A rewards program involves “gifting” your customer with something that is valuable to them if they remain loyal to your brand.

These rewards range from discounts, financial benefits, accumulation of points that will be converted into prizes, etc. There are many ways to delight your customer.

Integrated shopping experience

Today we live in the age of experience, customers want it.

Always monitor

With a team focused on results, implement a culture of monitoring your customers for each campaign. Evaluate results, adherence and feedback from them.

You need to pay attention to these details, because that way you will be getting closer and closer to your target. By knowing the results, it becomes easier to work on strategies, reaching the preferences and needs of your audience as much as possible.

Got it? We know that in everyday practice it is not an easy task, but go ahead and apply what is possible every day. With the arrival of new technologies with artificial intelligence  If this practice is already part of the company's culture, operations will become increasingly easier!

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