Attaining customer loyalty is as essential as it is tricky. An organization essentially spends over 7 times more on their retention funds compared to acquaintance funds to expand its customer base and enter into a new market.
This clearly states that customer retention is way more important than customer acquisition.
How to retain customers & increase customer loyalty?
Customer loyalty is essential to chart and analyze on a regular basis. While there are textbook cases to increase customer loyalty scores, it is essential to know your audience and target them through classification.
A couple of steps assure personal touch of care to your customers helping you retain customer loyalty for the long term.
Customer loyalty refers to the strategic planning for retention of existing customers. It increases the net purchase value and prolongs the relations an organization holds with its customers for the long run. Overall organizational health is enhanced and customer-centric metrics like CX and CSAT are strengthened alongside revenue generation.
Start scaling your customer support, and collaborate better with your team, Get started to build customer loyalty.
Importance of customer loyalty to enterprises
1. Brands lose their ROI scores owing to lowering customer loyalty scores. Businesses must always plan to earn revenue and assign a part of it to acquire new customers.
2. Maintain a professional level of services delivered and keep in touch with your customers. Read all pressure points and work on resolving the same.
3. Feedback, report, analysis, statistics, and community formation keeps the customers updated and connected without any extra effort.
4. Personalize all experiences for your customers, ranging from texts to notifications and guides. Make them feel valued & extend not just a responsibility unburdened but a duty well done.
5. You are a business house but your customers are not. Maintain your human side and engage in CSR activities along with your customers.
6. System of rewards and benefits proves successful always. Everyone wants more at a lesser price and timely rewards encourage customers to purchase with brand loyalty.
How to maintain customer loyalty?
- Honour their wish when possible. It is not much taxing to extend a complimentary courtesy.
- Take each ticket with equal energy. It might be a routine for but thankfully, it isn’t for the caller.
- Suggest them better and quick ways.
- Talk to your supervisors where you think some important measures are lagging behind.
- Announce your plans and launches to members first. Give them first come, first serve advantage.
- Verify, update, and double-check every knowledge article published. Give proper credits where essential.
- Even the complicated most numbers and statistics become easy to decipher and read for layman when depicted as graphs.
- Be reasonable in your targets. Don’t over-inflate your to-do list; this may mislead your image as under-receivers among customers.
- Keep reminding the customers that you haven’t forgotten them, communicate regularly without overwhelming or spamming.
- You are giving a solution. The design can be symbolic but not a puzzle. Establish a good visual hierarchy.
- Bridge all kinds of semantic and cultural barriers. Use the native language of your customers, easing search and self service.
- Do not forget that your agents and employee workforce need motivation and not terror. Work ASAT for consistent CSAT.
Use case showing the results of positive customer loyalty
Amazon Prime gives exclusive benefits and rewards to its Prime members across all its platforms. This results in the development of customer loyalty. With its goods and services branched out, the customers can literally use Amazon as a one-stop-shop be it for food, shopping, books, or entertainment.
Sephora is a beauty products brand. The initiative Sephora Insider stands in alignment with their motto of great customer service for enhanced customer loyalty. The customers with membership to their Insider program get exclusive deals, discounts, meet-up opportunities, etc which builds a never like before the community. The benefit derived is that the employees on top of corporate levels can directly communicate with consumers. Retention, expansion, loyalty, appreciation, etc are all possible with such smart and small steps.
Data doesn’t lie
- 65% of a company’s business comes from existing customers.
- For most industries, the average customer retention rate is below 20%.
- 93% of customers are likely to make repeat purchases with companies who offer excellent customer service.
Your customers form the foundation upon which a strong business can be erected. It, however, is upon you to create and maintain that bond. There always is a place for earning or giving more but you must be capable of drawing a line between revenue generation and deals extended to your customers. Knwomax takes pride in stating that its customer retention is as high as 95%.
It clearly indicates our policy of better client servicing, improved agent training, regular CSR initiatives, and a robust knowledge creation and management system assuring timely and complete communication to agents and end users as well.