By customer loyalty we mean the process of building a relationship with a customer that goes beyond their first purchase. The customer is loyal to the brand because they have a relationship of trust and a highly satisfying experience that makes them come back to us.
Don’t overlook loyalty
We often ignore loyalty and focus too much on acquiring new customers, when in reality it would be cheaper for us if customers we’ve already won over came back to buy our products. It’s about finding the balance between the two factors, but never letting loyalty slip by.
Once we have an e-commerce or a physical store and we want to build customer loyalty, it’s important to provide added value. We should ask ourselves: what could we offer to attract them and keep them interested in staying with us?
Ways to build customer loyalty
Beyond the different techniques we’ll describe below, we have to bear in mind that:
- A quality product that meets the customer’s expectations.
- A fast and satisfying service.
- Ultimately, committing to customer care.
These are essential factors for attracting and retaining customers in a more passive way. If you’re as curious as I am, here’s more information about The 8 keys to success when you understand your digital customers.
A list of the customer loyalty strategies companies use today:
1. Promotions, contests and exclusive content for current customers
By running promotions, contests and exclusive information about the brand or the sector, we’re giving customers value to keep them with us. It’s important to stay active and get feedback from customers whenever possible in order to improve our management.
2. Membership club with a points system
The membership club lets us keep a complete customer profile in our system, creating a loyalty network where customers are easier to manage. Many companies adopt the strategy of accumulating points that can later be redeemed for money or products.
3. Lower prices for club members
As we said earlier, lowering prices is always a good incentive to sign up as a member, so applying this measure to the membership club is very common and tends to have a very positive impact.
4. A special discount or gift on the customer’s birthday
Having personalized touches with our customers makes all the difference. They feel cared for and appreciate the attention you give them. Who doesn’t love a little gesture on their birthday? It has a very positive impact on loyalty and on the brand’s image.
5. Satisfaction surveys to improve the brand
Nobody likes wasting time filling out surveys, so it’s important to come up with an entertaining format. Also, if we frame it to the customer as a way to help improve the brand, and make it clear that their opinion counts and the changes they suggest will be considered, we could get more participation.
6. Offer new products based on their previous purchases
Offering products similar to their purchases gives them personalized treatment and increases the chances that the customer ends up buying one of the items on display.
7. Premium services
Offering premium services, such as free shipping if you’re a member, is an added bonus that provides value. On top of that, it increases the chances of building customer loyalty and getting word to spread among them, reaching more people.
8. Newsletter with news and promotions
It’s very important to keep sending newsletters to show that the company is alive and active. Industry news, company updates, promotions and events that customers might be interested in… As with everything in life, we have to find a balance, since we’ve all been there thinking: “these people are so annoying, they won’t stop sending me information, right?”
Building customer loyalty isn’t a simple task; it often goes unnoticed, but it has enormous potential. Building a good strategy and planning around the resources we have as a company will help us figure out the best option.
Examples of customer loyalty
Starbucks
People come back to Starbucks again and again not because it’s the best value-for-money coffee they’ve ever tasted, but because of the wide variety of products they offer, the venues with free wifi and the pleasant atmosphere. The packaging is very aesthetic and they take very good care of their customers. They’ve also created a mobile app that lets customers pay through it and accumulate points they can redeem very easily.
The North Face
The sports and adventure clothing company North Face lets you redeem points through “VIPeak” in very different ways, from attending a North Face conference or party to climbing the Himalayas. These are experiences aligned with the brand’s values that go beyond customer loyalty. They adapt to customers’ lifestyles by offering unique experiences.
Nike
The company Nike has created a virtual community of runners where they can compete against each other, post workouts and create challenges. On the other hand, Nike rewards runners with workouts and challenges all over the world. It’s a strategy that manages to build customer loyalty and reach potential customers by creating challenges and exclusive events for those who are part of the community.
Many companies that focus much of their effort on asking for feedback and improving their product are the ones that end up succeeding. They know their customers perfectly and how to give them the best possible experience.
At Stockagile we always recommend caring for your customers in the best way possible, because without them the business doesn’t exist. If our goal is for them to buy our products, the customer cycle doesn’t end there. We have to think up a loyalty program or strategy that aligns with our brand.