How to keep customers loyal to your brand

Gaining customer loyalty is one thing. Maintaining it through competitive markets? It’s quite another. With so many businesses vying for your customer's attention, maintaining their loyalty (and attention) has never been harder for a growing business.?

But it’s not all about navigating the markets; loyal customers are essential for repeat business. Not just because they come back - but because they often spend far more and much more frequently. In fact, increasing your customer retention rates by just 5% is said to increase your profits by 25% to 95%.?

Yet, to be able to achieve this success, you need to show your customers that you care, that you understand and that you are ready to support them in any way they may need. And with an eye-watering 96.8% of UK Gen Z saying they are more likely to remain loyal to a brand that shares their beliefs , there’s never been a better time to get ahead of the matter.?

Where (and why) we often fall short?

But here’s the warning on the wall: Around 72% of customers would switch to a brand’s competitor after a negative customer service experience. You can have the greatest offering in the market, but you still miss the mark when it comes to engaging your customers. No business is ever immune from this hurdle.?

That said, there are some specific areas where you could be falling short:?

Lack of meaningful engagement

When your customer engagement is inconsistent, it's a hard sign that your customers may feel like you’re neglecting or undervaluing them. Purchasing relationships, by nature, are emotional, and customers expect regular and meaningful interactions. Without this consistent and attentive communication, even the most loyal customers may start looking elsewhere for the connection they crave.?

As such, maintaining consistency in your engagement helps build trust and a sense of belonging among customers, making them feel like a vital part of your brand's community and, ultimately, lifestyle.

Failing to adapt as expectations evolve

We all know trends and technology change faster than ever these days. However, what most businesses don’t anticipate is having to evolve as the customers' needs do. A misstep that ultimately leads to customers disengaging. That’s because when your brand remains static and fails to supply the ever-evolving needs of your customers, they’ll determine that your business no longer fits their “lifestyle” and, as such, doesn’t meet their expectations for satisfaction anymore.?

Getting meaningful feedback

What better way to know what your customers think about you and your business than simply asking them? Too many are apprehensive about approaching customers in this way, but really, it’s the key to knowing whether what you’re doing is working well or not.?

Strategies for keeping customers loyal to your brand?

So, how can you prevent losing your well-earned customers and transform them into raving fans? The solution lies in discovering our strategies for keeping customers loyal to your brand:?

1. Provide a loyalty programmes

Think loyalty programmes are all about free coffee? Loyalty programmes are no longer just about points and discounts. They're about creating emotional connections with customers, focusing on making them feel valued and appreciated by supplying them with bespoke offerings.

And it works! The proof is very much in the pudding, as when it’s done right, you can even charge your customers to be a part of exclusivity. A McKinsey survey on loyalty programmes found that “members of paid loyalty programs are 60% more likely to spend more on the brand after subscribing, while free loyalty programs only increase that likelihood by 30%.”

Additionally, these “paid loyalty programs drive higher purchase frequency, basket size, and brand affinity compared with free loyalty programs.”

So, what we’re saying is regardless of whether you choose free or paid, you must reward your loyal customers with incentives, discounts, or exclusive offers through a well-designed loyalty programme. This proactive approach will encourage some type of repeat business and foster a sense of belonging quite quickly.

2. Personalise experiences and touchpoints

91% of consumers are likelier to shop with brands that recognise, remember, and provide relevant offers and recommendations . Delving deeper, 52% of consumers agree that as their digital experiences with brands become more personalised, their satisfaction improves . Then how do you achieve this bespoke experience? By using customer data and analytics to find valuable insights about what your customers actually need and want, you can tailor offerings and communication appropriately.?

3. Streamline customer service and support?

93% of customers will likely make repeat purchases with companies that offer excellent customer service. Outside of those personal and bespoke moments, delivering outstanding and rapid customer service is paramount. All things like responding promptly to inquiries, addressing concerns efficiently, and going above and beyond to ensure customer satisfaction.?

Wrapping up: Nailing customer loyalty and retention

Whilst loyalty programmes are seemingly everywhere now, and they are done well, they are still an effective way to increase retention, repeat business, and relationships with customers.?

Need help nailing your loyalty and retention? Discover the power of using AI to personalise your user journey! Join us on Wednesday, 26 June, as we bring together product and marketing leaders to learn how to unlock the full value of your data assets and implement AI to personalise your user journey.

https://www.383project.com/blog/using-ai-to-personalise-your-user-journey