understand what you need to have a consumer that propagates your brand – WAU
What if you found out you are dedicating yourself to the wrong priorities in your business? This is the case for many entrepreneurs who only think about attracting new customers when they should consider ways to retain those who already have them. Customer loyalty is essential for any company that wants to become a reference and continue for […]
What if you found out you are dedicating yourself to the wrong priorities in your business?
This is the case for many entrepreneurs who only think about attracting new customers when they should consider ways to retain those who already have them.
Customer loyalty is essential for any company that wants to become a reference and continue in the market for a long time.
You can see how some of the most profitable companies in the world, like Apple and Coca-Cola, owe much of their success to hordes of loyal customers, always ready to defend them.
This is far from saying that only large corporations are able to retain customers.
On the contrary, now you will see once and for all how to make your customers happy and create your own army of fans!
Why is customer loyalty important?
Building customer loyalty is as important as attracting them. That simple.
Without it, the new business would be enough to just keep the company running, with no chance of increasing profits or expanding the operation.
In addition, we can cite at least 5 good reasons why loyalty should be one of your business priorities, and involve everyone in the company:
Loyal customer buys again
As you may already know, a satisfied customer buys twice (or more!). The reason?
The person no longer needs to be convinced: she has already proven the quality of the product, has acquired confidence in the service and has knowledge about the brand.
Considering that selling to a recurring customer has a much lower acquisition cost compared to someone who has never bought, the power of sales loyalty is even more evident.
Indications are spontaneous and constant
A loyal customer does not recommend their favorite product thinking about getting something in return, it does it simply with a habit, a way to share something of value that they have found and can help others.
This is fantastic for any brand, as it receives spontaneous and excited indications at all times, often at times when it would never be able to infiltrate successfully, such as a family barbecue.
The amount spent per purchase tends to be higher
In addition to the improvement in the frequency of purchases, the average amount spent by those who usually work with the same brand is also usually higher.
Since raising the average ticket is the best way to increase profitability without having to expand the customer base, is there any doubt that it is worth implementing a loyalty plan?
Revenue becomes predictable
Another great benefit of having a loyal clientele is the possibility of reaching a state in which the revenue becomes predictable, that is, the company knows when to expect to win.
This is achieved by studying the frequency of customer purchase, their average ticket, the average number of new buyers coming by referrals and the history of new business per month.
Honest and accurate feedback
Finally, not all customers are willing to give their opinions and share with companies what they think about aspects such as product, service, delivery, among other aspects.
But loyal customers, for sure, take time for this, because for them it is not an activity that will take their time unnecessarily.
Rather, it is something they are personally involved in, and they want to see it improve every day.
This determining factor, passion, makes feedback accurate and honest, just what you need to create increasingly better consumer experiences.
What are the degrees of customer loyalty?
According to marketing master Phillip Kotler, there are different degrees of loyalty among customers, in general.
Understanding what they are is important to understand what stage most of your customers are in, and to think of ways to take them to the highest level as soon as possible.
Basically, Kotler divided customers into 4 groups, according to the degree of loyalty:
- convinced: always buy from the same brand;
- divided: faithful, but fans of 2 to 3 different brands;
- fickle: change brands all the time;
- infidels: has no preference whatsoever.
Naturally, the desire of most companies is that their customers be convinced or divided, as this guarantees a greater number of sales and power of influence in the market.
How to measure customer loyalty in your company
Since we have so many reasons to invest in customer loyalty, it is essential to find out whether efforts are working or not.
The only way to do this is by qualifying the processes used and measuring the results achieved. This way, you can quickly identify what needs to be adjusted or expanded.
Is it possible to measure customer loyalty accurately? Certainly! See 4 practical and reliable ways to find out if your customers are really becoming fans and promoters of the brand:
Net Promoter Score
The Net Promoter Score, or NPS, is a simple, fast and accurate way to assess a customer’s level of attachment to a particular company or product. Just ask the following:
“On a scale of 0 to 10, how much would you recommend Company X to a friend or colleague?”
This simple question, relatively simple for customers, will teach a lot about the quality of their loyalty strategy.
On the other hand, it is also very useful to conduct in-depth interviews with your customers in order to find out not only how much they are attached to the brand, but also the whys involved in it.
This type of interview can even be done as a follow-up to the NPS, with an invitation for customers who agree to talk a little more about what brings them closer (or away) from their company.
It is worth remembering that if your company has many customers, this action can be automated with online questionnaires.
Recurring customer index
How many of your customers have purchased before? What is their rate of return? Questions like these quantify loyalty in an extraordinary way, and say a lot about the work done.
The higher this index, the more attached customers are, which signals a good execution of the loyalty strategy.
If your business follows the subscription model, you can still track metrics like Churn, which indicate the rate of cancellations.
New customers who bought on behalf of others
Even new customers can help you understand how your customer loyalty power is doing. Just ask a little question, if possible, as soon as they make their first purchase:
“How did you hear about our product / service?”
Whenever the answer is “by someone’s recommendation”, chances are good that that “someone” is one of your loyal customers.
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4 practical tips to delight and retain your customers once and for all
Satisfying a consumer is difficult, but doing it for a long time is an art. As such, it is important to learn some techniques and practice them to the fullest.
This is the premise of Customer Success, a concept in which the concern with customer satisfaction and results are at the center of the relationship maintained with him.
Here are 4 valuable tips to delight your customers and turn them into promoters of your brand:
1. Deliver as much value as possible from the start
Loyalty begins already in the implementation process of the product or service, when the customer is taking the first steps with the solution they just purchased.
If you have an e-commerce, ensure that the entire delivery process is fast and uncomplicated, and upon receipt the customer feels confident that he made a great purchase.
2. Offer impeccable support
Support is also one of the key points in loyalty, because most relationships are defined when something goes wrong.
At such times, it is essential that your attendants are quick, friendly and dynamic enough to solve the customer’s problem quickly.
In addition, offer self-service options for cases where the customer only wants to answer a common question or recall basic points of the purchase they made.
3. Know how to say no
The secret to customer satisfaction and success is not to say yes to every suggestion or request he makes. On the contrary, knowing when and how to say it is not crucial.
The resources that the customer asks for the product or the solutions pointed out by him are not always the most effective. It’s your role understand how to best serve you possible and execute that vision clearly.
4. Take action based on feedback received
Paying attention to constructive criticism and suggestions given to customers (without forgetting the previous point) is a great way to make them satisfied.
They have a different view of you on how to best address problems, and are of great help in tackling problems that your team may not even have noticed.
For this reason, acting on feedback whenever it proves to be the best option is great value to keep customers happy and loyal.
Customer loyalty is undoubtedly one of the most important issues for the success of your company, both now and in the future. So be sure to put the tips shown here into practice. Do your utmost to offer a fantastic experience to your customers, and they will continue to buy from you.
How about applying these tips in a brand new e-commerce? See how to download our complete e-commerce guide, from creation to customer loyalty!