Brand Loyalty: How to Build Customer Loyalty
The numbers in recent studies don’t lie when it comes to the world of customer loyalty. According to an article by HubSpot, it costs a business between 5 and 25 times more to acquire a new customer versus doing business with an existing customer. This makes it clear that recurring customers are an important source of revenue, that every business owner must take into account. With this in mind, some entrepreneurs and business owners might ask themselves how to create customer loyalty in an increasingly competitive economic climate. Check out our list of recommendations that can help you retain customers, regardless of the industry you operate in.
Offer Prizes and Programs That Your Customers Will Appreciate
Offering prizes and loyalty programs is one of the most common ways to build customer loyalty. Recently, however, there has been an increase in customer loyalty programs, but with little that distinguishes one retail establishment’s program from another. In short, a successful loyalty program should help you retain your existing customers and generate more referrals. But what distinguishes a successful campaign?
Typically, a successful loyalty program has at least one of these 3 criteria:
- Offer discounts or exclusive sales
- Promote a system of reward points
- Provide a wide range of offers
Communicate Empathy to Your Clients' Point of View
Customers want to know if your organization or business really understands their state of mind and values. As a business owner, your duty is to stimulate customer loyalty with actions that show that you value your consumers’ point of view.
Let's look at an example of a customer who truly felt a sense of empathy by his insurance agency. Bill Wilson, an insurance educator, tells us his story saying, "Just over 35 years ago, my mother was diagnosed with small-cell carcinoma, a very rare and aggressive form of pancreatic cancer." His mother was an employee of the Al Phillips Insurance Agency and her ability to work was severely minimized by the intense cancer treatments. Wilson says, "So, what did Al Phillips do? He mailed her full paycheck every two weeks, regardless of whether she was able to work or not." He also mentions that when she passed away, Al Phillips and his wife accompanied him in his pain and grief. Bill has been a life time customer for the Al Phillips Insurance Agency because of the empathy and support they provided when he needed it the most.
Even though this isn’t a typical customer loyalty example, the fact of the matter is that we can all learn something from Bill’s experience. Communicating empathy is done with legitimate actions and support, rather than simply stating that a business empathizes with customers. For instance, your customers could ask themselves questions like: "Are they paying their workers fairly?" and "Are they treating the environment in a respectful way in the production of the product?"
Show the Behind the Scenes
Another way to cultivate customer loyalty is by humanizing the company and perhaps showing a different side of your organization. One way to possibly achieve this is by putting a spotlight on the employees involved in creating your product or service on a daily basis. The ability to let your customers see and even interact with important team members helps them get an inside look at your business’ history and culture, which is only beneficial in terms of growing customer loyalty. You could also showcase the manufacturing process for your product, which increases the consumer's confidence in your organization’s transparency. In short, showing the behind the scenes of your business creates an environment for building consumer confidence.
Remember your Customers' Birthdays
Dale Carnegie, an American writer and speaker, always encouraged business owners to show true appreciation for their customers or business connections. Carnegie distinguished himself by creating a unique way for showing loyalty to his acquaintances by writing all of their birth dates down in a notebook. Later, when those dates came around, he sent them a letter or a telegram, which shows and reinforces the fact that his connections and clients really were important to him.
In fact, a study finds that "75% of customers who received a birthday message from a company with whom they did business perceived that organization more favorably." So, it’s time to the time to do something about your customers' birthdays!
Don’t Copy and Paste What Others are Doing
There’s a big difference between being a follower and an innovator. In the business world, although innovation has a certain degree of risk, the return on investment from creating innovative processes is enormous. For that reason, it’s necessary to take into account that although something might work for a specific business, that doesn't mean that it will be successful for yours. Instead of copying other businesses customer loyalty programs, it’d be an even better idea to research what others in your industry are doing and analyze what adjustments you could make to them, from the customer's point of view.
Infinity Insurance understands the importance of treating customers as a family, especially when it comes to building customer loyalty. When it comes to protecting your business, save yourself a headache with the best coverage while you run your business. Get in touch with an Infinity agent at 1-800-INFINITY or get an online quote today.
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