"Loyal customers, they don't just come back, they don't simply recommend you, they insist
that their friends do business with you."
A customer who keeps coming back to you, either by themselves or with their friends and family is a loyal customer. A loyal customer doesn't consider alternatives. He won't mind paying a premium for his valued loyalty. Loyal customers are the greatest advocates of your brand.
Sometimes customer loyalty is achieved in the most surprising ways! A sweet gesture after an unfavourable experience faced by a customer was seen to turn a dissatisfied customer into a loyal one.
Know what Customer Loyalty is?
Loyalty is built after a series of positive interactions your customer has with your brand. Therefore, customer loyalty is all about building trusting relationships with your customer after offering repetitive positive experiences. After all, "You don't earn loyalty in a day. You earn loyalty day by day"!
Most organizations now focus on customer loyalty programs. Studies show a customer is likely to spend more on a favourable brand’s products or services when they are part of such loyalty programs. It is easier and more economical to retain a customer than to acquire a new one. Therefore, it is safe to say that these customer loyalty programs are great strategies for customer retention.
Customer Loyalty is imperative for every organization. Let us look at some reasons how the growth of an organization is aided by loyal customers.
Loyal Customers Contribute to Repeat Business
Persistent efforts at ensuring positive experiences for your customers turn them loyal to your brand. As rightly mentioned in studies, repeat business is good for business. When customers are loyal, they keep coming back to spend more. Some studies suggest loyal customers spend 60-65% more than new customers.
Loyal Customers are your Brand Advocates
Serving your customers empathetically helps organizations to earn their trust. Loyal customers do not just come back to your organization for repeat purchases, they also bring their friends and family and speak highly of your brand. This is also a great way to increase your NPS!
Loyal Customers Contribute to Increased Revenue
Customers who keep choosing your brand over others in the market, firmly believe that they are getting value from each transaction. Customers who trust your brand are also more likely to explore various ranges of your brand’s offerings that they might not have previously considered, as well as order their favourite products in increasingly large quantities. Their frequent purchases thereby contribute to your organization’s revenue.
Loyal Customers Can Easily be Retained
The path to reaching new customers and winning them takes a lot of efforts, effort in terms of time, energy, money, etc. Studies suggest retaining a loyal customer is 5x times easier and more effective than converting a potential client. In other words, acquiring new customers takes a lot more work than building customer loyalty with your existing customers. The more repeat customers you have, the less time and money you have to spend trying to find new ones.
Loyal Customers help is garnering Honest Feedback
Customers who develop an emotional connection with your brand will most likely help you with all the support needed to grow. Since they believe that they derive value from each experience they have with your brand, they will mostly provide honest feedback. Such feedback can be constructively used to continuously grow the market.
Here's how McDonald's UAE did it! Recently, a customer in UAE ordered from McDonald's. His order was placed from a hospital. When he received his parcel, there came a small note that read, “Hello! We’ve seen that you’ve placed your order from the hospital. Hope you’re keeping well! Your order is on us. The McDonald’s UAE team”.
The thoughtful gesture won millions of hearts and surely fetched one loyal customer! Therefore, by now we understand how crucial ensuring customer loyalty is for your organization and all the benefits it has on your brand. At Zykrr, we emphasize building trusted relationships between your brand and your customers.
To learn how to effectively calculate customer loyalty and use such data to understand what your next steps should be, visit us at https://www.zykrr.com.