4 Ways to Increase Customer Loyalty During Covid-19

Covid-19 pandemic has turned the world topsy-turvy. We have witnessed unprecedented changes in the economy and business. Countries are struggling. Economic activities are declining. Budgets are frozen. Work from Home is the new norm. Consumer behavior patterns are changing.

Brands are on their toes coming up with ideas to cater to the changing expectations of customers. And the last thing any brand wants to make matters worse is, lose a loyal customer base.

Did you know existing customers are 50% more likely to try a new product of yours as well as spend 31% more than new customers?

Let me take you back to 2008-2009. Period of the Great Recession in the U.S.? The U.S. economy was sinking. Auto manufacture sales declined. At that time, Hyundai Motors witnessed a 40% increase in its market share.

How did they manage to accomplish this during the time of crisis? Simply by conversing with the customers. They tried to understand the situation from their perspective and then brought changes which led to an increase in sales and market share.

This approach of building a relationship with the customers is key to strengthening customer loyalty.

So, here are some suggestions to help you increase customer loyalty during the current situation.

1. We Care for You, Dear Customer!

Show some sensitivity and let your customers know that you care. To promote social distancing, McDonald’s chose to redraw the two sides of its logo apart. Ford is supporting consumers facing financial hardships through the Ford Credit payment relief program. To reinforce #StayAtHome, Nike made a life-saving call to action, “If you ever dreamed of playing for millions around the world, now is your chance: play inside, play for the world.” 

This is the time to think of your customers more than ever. Communicate with your customers in a comforting manner. Let them know that their safety is your priority and you care for them. This can be done by sending a newsletter, comforting emails, or even a simple message on social media would suffice.

2. Run a Loyalty program

To increase customer loyalty, consider implementing loyalty programs. This will keep your business going. Barry Kirk, VP of Martiz Motivation describes loyalty program as “like a rainy-day fund, with stored equity being the goodwill and brand commitment they’ve built with their most engaged customers.”

According to Global Web Index, 81% of individuals believe that companies should run promotions, offers or loyalty perks for customers.

A good example of a loyalty program is the Beauty Insider Program by Sephora. The features of this program include birthday promotions, free makeup classes, personalized product recommendations, and free makeover.  

This way, customers feel loyal towards a brand that offers rewards, discounts, and other incentives to them. Moreover, reward programs can make the customer emotionally connected and leads to choose the brand more often. To increase engagement of such programs, try to make it more fun, give special offers to existing customers, and encourage them to sign up for the program.

3. Increase Your Online Presence

During the pandemic, more and more people rely on social media for information, connection, and entertainment. Facebook saw a 70% increase in the usage of all of its apps in the month of March 2020. This indicates a good chance for you to boost your social media presence, and retain your customers.

Let them know that you are available online. Try to engage with your followers on social media platforms. Posting valuable and relevant content daily on social media will remind your customers of you as a brand who cares. 

4. Keep a Check on Customer Satisfaction

Research by Microsoft shows that 69% of US consumers say customer service is very important when it comes to their loyalty to a brand. This shows that satisfied customers tend to become loyal customers. 

 During this time of crisis, you can benefit from providing impeccable user experience to your customers. Trying out various mediums likey conducting a metric used in customer experience programs that measures the loyalty of customers to a company. Surveys like this will help you serve your customers effectively. You can also collect and analyze data using focus groups, and feedback on social media.

 Moreover, people are turning to e-commerce. You have to ensure a smooth, and fast experience on your eCommerce website. If other brands provide a better on-site experience, your customers are likely to ditch you for them. Therefore, you should focus on improving the navigation on your website, simplified payment procedure, and quick delivery to improve customer experience.

Conclusion

‘Satisfaction is a rating. Loyalty is a brand.’

One way to survive the downturn is to engage and retain your most valuable customers. Believe me, the actions you carry out today will be remembered even after a decade. Your customers will remember who was with them and they will come back to you.