Customer loyalty is a key metric for any business, but how do you know if your customers are loyal? Loyalty can be measured by repeat purchases, repeat visits to your store or website, and referrals to other potential customers. If a company has high levels of customer loyalty it may also see an increase in sales, profits, and customer satisfaction. Here are four ways that you can encourage customer loyalty.
Respond to customer feedback
Customers are the lifeblood of your business, and it’s important to recognize this by responding to their feedback quickly and efficiently. The first step is listening closely. When you receive customer complaints or negative feedback, take them seriously—even if they’re negative.
The best way to respond is with a sincere apology and an offer of help. If a customer complains about the quality of their experience at your business, take some time (ideally within 24 hours) to reach out to them personally via email or phone call and ask what can be done to resolve their issue. You’ll want to do this in the following ways:
Be empathetic: While it’s tempting for a business owner or manager—especially one who feels that they’ve put in long hours building up their brand—to come across as defensive when addressing complaints from customers, try instead finding empathy for what they’re going through while also remembering how much work went into developing your reputation in the first place.
Take responsibility: If a problem arises during an interaction with one of your employees, don’t blame them for any part of it. Instead, own up to yourself where appropriate and offer restitution if necessary, such as offering coupons for future purchases or a discount on their current purchase.
Reward your customers
You know who your best customers are, and you should reward them. It’s not enough to simply maintain good relationships with the people who have already bought from you; they must also feel appreciated and acknowledged by you regularly. This can be done in several ways, such as offering discounts, giving gifts, and special privileges to the best customers.
Establish a connection with your customers to encourage them to make repeat purchases
Build a relationship with your customers. When you spend time getting to know them, they feel like they can trust you and build a meaningful, ongoing relationship. Be responsive to customer requests. If a customer has an issue or question, respond promptly (within 24 hours if possible). This will show that you care about the problems they are having and value their business as well as future purchases from them.
Share information about your company on social media platforms such as Facebook and Twitter so that current and potential customers learn more about what makes your brand unique compared with other companies out there competing for attention from shoppers looking for products similar in nature.
Give discounts and gifts to returning customers
You can give loyal customers a discount on their next purchase, or you can give them a small gift after they’ve spent a certain amount of money with you. This is a great way to reward your best customers, and it makes them feel appreciated for their loyalty.
If you offer gifts or discounts, make sure that it’s easy for the customer to claim them. A discount code can be accessed by entering the right code in the right place during checkout—and then voila. The customer gets their discount automatically applied at checkout. Alternatively, if your store uses a POS system like Shopify POS or Square Point of Sale, then there are usually options where returning customers can swipe their phone over a barcode scanner and receive discounts automatically after paying for items at check-out time.
It’s also important that any discounts offered will match what other competitors in your industry are offering—if not better. For example: if most stores offer 10% off purchases over $100 but one store offers 15%, then clearly which store would get more sales? If there’s no clear answer to this question then try finding out how much each type of customer spends per year and how often they shop before deciding on appropriate reward schemes.
Conclusion
If you want to increase customer loyalty, it’s important to recognize that actions speak louder than words. Your customers want to know that they matter, so show them through your actions—and give them something tangible for their loyalty.
