Proven tactics to create and keep up customer loyalty
As we know, customer dissatisfaction can cause serious problems in businesses.
Statistics show that:
- about 1 in 4 transactions creates a quality problem with the customer
- the majority of customers who face a problem do not report it to the company (1 in 3 complains to the company)
- the dissatisfied customer will discuss negative experience with 9 other potential customers
- while 65% of dissatisfied customers who have expressed a complaint will not return for other transactions in the company
- in case of bad dealing with customer complaints 83% of customers choose another business in the next market
- while the cost of attracting a new customer is 5 times the cost of maintaining a satisfied one.
Of all above evidence it is found that dissatisfaction can cause significant losses in the business.
Customer loyalty is vital for every business
Many companies aim for high satisfaction, because customers who are simply satisfied continue to find it easy to turn to a better offer when it arises. Those who are very satisfied are much less prepared to turn in another direction. High satisfaction or enthusiasm creates an emotional bond with the brand, and not just a preference based on logic. The result is high customer loyalty.
Loyalty is a strong commitment of customers that they will repeat the purchase or continue to be customers of a product or service in the future, regardless of the influences of different situations or marketing efforts aimed at changing the purchasing behavior of customer.
Loyal customers will encourage others to buy from you and think more than twice before changing their mind to buy other services. Customer loyalty is not gained by an accident, they are constructed through the sourcing and design decisions. Designing for customer loyalty requires customer-centered approaches that recognize the want and interest of service receiver. Customer loyalty is built over time across multiple transactions.
How to create and increase customer loyalty?
If you’re looking for reliable ways to create and keep up customer loyalty, consider implementing a few of these tactics:
- Evaluating customer complaints by providing quick and effective solutions is probably the most important issue your business needs to focus on if it wants dedicated customers
- Customer events are another way that adds value to the customer and keeps him/her close to your company.
- Personal emails/letters, phones and thank you cards are easy methods you can use to maintain loyal customers.
- Encouraging customer feedback is significant. Customer reviews go hand-in-hand with customer loyalty. Good reviews will drive prospects to your business, good service will convert prospects into customers, and satisfied customers will leave good reviews.
- Keep a human relationship with your customers. Although in the digital age, one-on-one interactions are much appreciated. Online chats and email correspondence are appropriate for a lot of situations, but nothing beats a human touch.
- Do not neglect existing customers instead of motivate them to bring you new customers and rewards for it.
- You should offer benefits to returning customers and encourage them to purchase again, which is exactly what loyalty programs do. So reward your loyal customers (there are many loyalty programs types).
- Have customer-focused employees at the customer contact points and took care of their training and specialization in customer service.
- Try to be the best at whatever you do. If you want to attract and retain customers, you should become a reputable and trusted expert in your field.
About the author
Demosthenes Spiratos is the co-founder of EverFounders, COO at G. Manolopoulos ltd and a results oriented professional with operational and customer service background experience more than 20 years at wholesale, services and retail businesses. He has hands-on experience in the fields of after sales support and business development with specialization in improvements of systems and operation processes.