Customer loyalty is one of the perks of successful businesses. However, this subject is highly underestimated, and most brands do not develop strategies to build stronger bonds with customers. In this piece, we would like to scrutinize the importance of customer loyalty and offer new insights into it. The reason is, contemporary customer loyalty is harder to achieve, and we will also discuss why. Finally, we have some convenient solutions for you.
Why does Customer Loyalty Matters?
Gaining a new buyer is five times more costly than keeping an existing customer loyal.
74% of loyal customers say they are more forgiving of product and service-related errors.
Loyal customers enhance brand value with the positive reviews and ratings they leave.
Companies that increase their retention rate by 5% can also increase their profits by 25% to 95%.
An increase in customer retention by 2% is almost equal to reducing costs by 10%.
Reducing customer churn by just 5% can increase profitability by 25% to 125%.
Why do We Need Better Strategies to Achieve Customer Loyalty
We need better strategies to keep customers loyal to brands as the competition and user behaviours change drastically. To ensure customer loyalty, we have dealt with different methods until now such as remarketing and customer loyalty programs. However, sticking to these conventional methods may not give the ideal graph on your performance reviews. So, businesses call for better strategies and contemporary solutions. But, exactly why?
The Increase in the Competitors
With digitization, it is now easier to enter the market and compete with the sharks. Therefore, businesses must assume there are multiple competitors vying for their customers. Additionally, the increase in competition means that customer loyalty is at stake. As long as consumers can find alternatives to your product or service, there will be a transfer from your brand to a competitor. Thus, the loss is more serious than it initially appears. As a result, companies must be more attentive to what other companies offer instead of focusing solely on retention.
Competing on the Customer Happiness
As the competition in the market becomes fierce, the shorter path to success passes through the customer happiness. So, every brands puts a great effort to provide and demonstrate the favourable customer experience. According to Harris Interactive, 89% of the consumers will shake a hand with your competitor following a negative experience. So, for user loyalty, the strategies aim the unique experience and higher satisfaction rates.
Customers’ Cautius Decisions
As the industries and the way to competes changes, it is not hyperbole to say that the
- behaviors,
- psyhological states,
- criteria,
- demands,
- concerns,
- budgets
change. Now, they are way more cautious on choosing a brand to purchase for their needs, and more observant on the way the brand satisfies them. Aside from the customer experience criterion, they seek for better and cheaper product. Whever they find one, they will switch to a competitor. So, as the customers are rightfully picky, to establish a customer loyalty brands should adjust their quality and functionally in parallel to customer needs.
How to Make Customers Content, Thusly Loyal?
As the heading says, to make customers loyal, you must ensure they are content with the services you provide. This requirement indicates that customer loyalty is a comprehensive task, which is why it is complex to achieve. In this section, we provide step-by-step guidance to make it easier for you.
1. Collect Customer Feedback Wisely
We have already talked about customer feedback. Now, let me detail its pivotal role on the customer and brand bonds building. Customer feedbacks carries the necessary and sufficient data regarding customer success such as;
- customer complaints,
- customer happines,
- the reasons for complaints and satisfaction,
- the expectations from the brand,
- the products that customers are eager to use,
- what do other compeptitors present interesting,
- customer suggestions,
- feedback regarding the communication channels,
- feedback regarding the department-focused success.
So, after gathering them with Ekotify and read them from the reports, the next steps are almost crystal clear.
2. Improve Sales and Support Teams Efficiency
After gathering feedback, you should also consider the parameters that reflect customer success. To keep teams resilient, following success patterns is key. However, you should be careful when interpreting the reasons for success. At this stage, instead of focusing on superficial data such as conversion rates, consider the underlying reasons that lead to conversions. In other words, look at the higher-order data. To regularly analyze this data correctly, Ekotify is fully equipped to assist you.
3. Risk Free New Product Launch
We have mentioned that customer loyalty hinges on customer satisfaction. However, customer satisfaction is not solely dependent on how you deliver your product but also on the product itself. Innovation is key to consumer loyalty as it ensures that you maintain functionality and fulfill needs. However, launching new products requires an investment of money and time, and the failure rate is significant. Learning the exact needs and understanding which kinds of products consumers are ready to use can make this process less risky. With risk-free product development, you can continuously meet consumer needs and keep the retention rate at its peak. Again, Ekotify reports point out the future groundbreaking product in the industry.
In Conclusion;
Maintaining customer loyalty requires new strategies as the industry and consumers evolve.
Recognizing customers and then taking steps toward loyalty requires effective customer feedback gathering strategies.
Ekotify reflects all the details regarding consumers and competitors. The rest is making wise, yet easy decisions.
