Customer Loyalty: How To Win It and Keep It

customer loyalty

Did you know that by increasing customer loyalty by as little as 5%, you stand to boost profits by as much as 95%? It’s far easier to secure a sale from a repeat customer than a new customer. Plus, repeat customers tend to spend more money on your products or services at a time. 

Chances are, you’ve focused a lot of your marketing plan on building brand awareness and generating new business. Now, it’s time to look at ways that you can also bring those new customers back time and time again.

So, how can you reach your existing audience to increase customer loyalty? What types of marketing and incentivizing will it take to turn a first-time buyer into a repeat buyer?

Read on for our guide to boosting customer loyalty in a few simple steps.

Incorporate Customer Service Into Your Brand

Who you are as a business is defined by more than just what you sell. Your brand also incorporates things like your values and the experience you can create for your customer. Make sure that quality customer service is at the top of the list.

First, start by getting to know your customers on a deeper level. What do their needs really look like? Which products do they buy the most and why do they choose your business over others? 

Use this information to inform the way that you interact with your customers. Make sure that whatever they like the most–whether that’s your attentive staff or your affordable prices–remains consistent. Strive to improve the things that they seem to like the least.

Finally, train your customer service staff well. Make sure they’re equipped to answer their questions and address their needs effectively. When a customer feels cared for and satisfied, they’re going to trust your business and return for future purchases.

Reward Loyal Customers With an Incentives Program

You may have noticed that many big companies offer a membership program or “customer loyalty” program. The idea behind these programs is that loyal customers don’t just get the products they want by repeat shopping. They receive an incentive that sweetens the deal.

Small companies can easily take advantage of this model. Better still, you won’t have to make a huge investment into things like company credit cards. Instead, offer things like discount codes for signing up for your email list or free products after a certain number of purchases.

This is one of the simplest ways to increase customer loyalty. It means that every time someone shops with you, they’re already thinking about future purchases they may make. Plus, your incentives program will make your loyal customers feel valued, especially when you reach out to them as loyal customers.

 

Give Experiential Marketing a Shot

How you market your business makes a world of difference. Social media marketing, email campaigns, and print advertising are all part of a strong marketing approach.. A strong marketing campaign will not only enable you to attract the attention of new customers but will also strengthen the brand recognition and trust of existing customers.

However, there’s a new form of marketing that really allows customers to get in on the action. This method is called experiential marketing, and it can happen both on and offline. 

Experiential marketing doesn’t just capture the attention of your audience. It captures their engagement. Examples of experiential marketing include in-person events like block parties or concerts as well as online activities like contests and giveaways.

More than anything, customers want to experience something unique and rewarding. As a business, you want them to associate positive experiences with your business so that they see more value in what you have to offer. By engaging more directly with your customers through experiential marketing, you can take a more active role in crafting the experience you want them to have.

Bonus tip: as you build up your experiential marketing campaign, build it into your incentives program. Let your loyal customers know about any upcoming events or deals before you announce them to everyone else. Offer them things like extra contest entries, bigger discounts, or VIP entry to your in-person events.

Encourage Customer Feedback

Let’s talk a bit about the psychology of your customers. When it comes to the value of customer feedback, we’re really looking at a theory called social proof.

Social proof is the influence that someone else’s behavior can impact our own. In business terms, that means that when a potential or first-time customer sees that someone else has already endorsed or positively reviewed their business, they feel encouraged to shop with your business.

Take advantage of the loyalty you already have by encouraging customer feedback. Once again, this is something that you can incentivize. Offer a discount for a positive review or a customer referral. 

It’s important to note that the social proof theory does posit that the more positive reviews you have, the better it will influence consumer behavior. If you don’t have many reviews online right now, consider prioritizing this step to engage with your current loyal customers and build your arsenal of loyal customers.

Build Customer Loyalty With Programmatic Advertising 

Few things are more valuable to your business than customer loyalty. One-time shoppers will help raise your profit margins, but loyal customers are the ones who will keep your business thriving. Use these simple tips to win and keep customer loyalty for years to come.

To gain loyal customers, you’ll need to get the word out–and you’ll want to ensure that your marketing plan is as cost-effective as possible. That’s why we offer our programmatic advertising services that test what works in a faster, smarter way than ever before. To find out more about how Media Shark can boost your marketing, contact us today!

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