In our modern digital world, we’ve grown accustomed to the convenience of utilizing mobile apps and punching in our phone number to receive loyalty rewards at our favorite stores, whether we’re grabbing our morning coffee through the drive-thru or purchasing our weekly groceries at our local market. We have certainly come a long way since the days of earning coins in the 1700s (yes, customer loyalty program solutions existed back then!), collecting stamps in the 1800s to buy groceries, and collecting key tags and cards to use when we shopped (wasn’t there something so satisfying about collecting those loyalty cards and key tags?).
When it comes to running a store, there’s no doubt that customers are the forefront of your business. While they bring you business, they also establish relationships with you, and those relationships can last years to come. In fact, 77% of shoppers report having ties with particular brands for ten years or longer. There’s something simple yet comforting about going into a store or restaurant knowing that the owner knows your name or even remembers your order or favorite types of blouses by heart, which is why it’s so important to never take your customers for granted. A simple act of kindness can make their day, and in return, they’ll show their appreciation for you by continuously coming to your business for years to come, becoming the loyal customers that depend on you. In this blog, we will discuss what brand loyalty is, why it’s important, and how you can build it for the long haul. This blog will go over brand loyalty, why it's significant, and how to cultivate it over time.
Brand loyalty and the significance of it
Simply said, brand loyalty is the practice of a customer making repeated purchases from your business because they believe in your brand. Businesses must design seamless experiences that satisfy customers and make them feel appreciated if they intend to establish strong brand loyalty. Customers will continue to buy from your business if you can cultivate brand loyalty with them. Those local spots like, say, an Italian restaurant or a store that sells handcrafted soap, would greatly benefit from and see an increase in traffic from loyalty programs for small businesses. Since it is much more cost-effective to retain an existing customer than to acquire a new one, this enhances customer lifetime value, which is essential. Brand loyalty is crucial to profitability because existing customers generate 65% of a business's income. In addition to making purchases 90% more frequently than new customers, loyal brand customers are also considerably less expensive to sustain than new customer acquisition costs.
Generating brand loyalty
Brand loyalty isn't something that happens instantly and what goes behind it is a lot of patience and dedication. Delivering seamless multichannel experiences that thrill your customers and make them feel appreciated must be a continuous goal. We have created a list of essential approaches to creating enduring relationships with customers.
1. A deeper understanding of your customers
You must first have a thorough understanding of your customers if you want to make them feel special. What benefits do they value the most? What do they love the most about your brand? What needs improvements? Are there any important details missing from your website? You should gather and examine as much information as you can about your customers in order to better understand them. You may find out more about your customers' interests by using data from sources including CRMs, website activity, social media interactions, email subscribers, and transaction records.
2. Highest level of quality
Quality is the first and most important need for brand loyalty. No matter how much money you spend on marketing, people will always comment about poor-quality goods and services. Meanwhile, businesses that continuously provide best-in-class quality will turn their customers into devoted brand advocates who promote their services and never feel the need to shop somewhere else. For instance, referral programs for businesses are crucial for word-of-mouth marketing. Your customer can receive rewards in exchange for suggesting, say, a coworker or their next-door neighbor to shop at your store.
3. Keep up excellent customer service
Delivering a consistently high level of customer service that entails creating a welcoming environment for your customers is crucial for fostering brand loyalty. Consistently providing top-notch customer service is an investment that generates the kind of brand loyalty that yields significant returns. One of the most potent characteristics that distinguishes a business from its competitors is superior customer service that makes customers feel appreciated. Customers must have access to user-friendly systems to provide feedback and file complaints, as well as a dedicated team of people who should be trained to respond to their comments as soon as possible, for customer service to increase brand loyalty.
4. Establish a community for your customers
Because people are naturally sociable, creating a community around your business can be a terrific way to increase brand loyalty. By doing this, you provide your customers with the chance to meet new people, establish business contacts, and exchange information about your goods or services. Every brand uses communities as an effective tool to market its own goods and services.
Customers are more likely to trust your brand and work with you if they see social evidence from their peers, though. In fact, 92% of shoppers claim to rely on word-of-mouth when choosing a brand. Establish a location where your supporters may gather and discuss your business, as this is incredibly beneficial. There are several various platforms you can utilize to develop a community, depending on your business. For instance, social media offers a variety of tools for creating deeper, more intimate relationships with customers from hosting Q&As and live broadcasts with staff to giving them access to the business's inner workings.
A digital community can operate as a bridge between social connection and conversion to a purchase in addition to providing a simple access point to interact with customers who spend hours online. Imagine that you operate a hair salon and are attempting to promote microblading to your customers after being certified recently. To demonstrate, you could set up a livestream. This could inspire people to try it out for themselves and allow you to leverage your talent. When it comes to referral programs for small businesses, the practice of integrating one into your business could help even more because if, hypothetically, your customer recommended their friend to receive your microblading services, you could reward them with a free haircut or mini soothing facial.
5. Craft a unique rewards program
One of the quickest methods to increase brand loyalty is to set up a program to thank current customers for their devotion. Even when a customer makes a purchase, your connection with them only just begins. Leading brands employ loyalty programs to promote future purchases. Retail sales incentive programs can be as straightforward as a restaurant's punch card for a complimentary appetizer or as elaborate as a mobile app that analyzes every purchase your customer makes and sends them push notifications with discounts. When designing your loyalty program, it's crucial to keep in mind that you should only offer prizes that your customers would truly value. If you have a thorough understanding of your customers, you should be able to predict the kinds of promotions that would excite them.
When it comes to loyalty software solutions, there’s nothing more exciting than new opportunities to boost your revenue and increase traffic into your much-loved store moving into 2023, which is why Loyal-n-Save is the fresh start you’ve been looking for, and we are with you every step of the way. With specialized, user-friendly solutions created around their objectives, we assist businesses of all sizes in maintaining their customers, and we want to help you do the same. To set up a consultation and have one of our experts give you a demonstration, give us a call today!
This article was written by Loyal-n-Save, an omni-channel customer loyalty solution for retailers looking to increase customer retention and new customer acquisition.