Customer loyalty is imperative for a brand to flourish, because it helps retaining customers and paves way for loyal customers to send out referrals. Marketers are opting for new methods and strategies for greater customer engagement and increased referrals. Building customers’ trust, so they come for frequent purchase is important and far more profitable than customer acquisition. Almost 65% of business leads come from existing customers, and they contribute to almost 80% of a company’s business. Loyal customers spend more to keep themselves upgraded in loyalty programs. Almost 43% of loyal customers keep sending out referrals to earn discounts and gifts. While new customers are harder to convince as they are new to your brand and your services are still unknown to them, a business has more than 60% chance to sell to an existing customer. Also loyalty programs effectively play a major role in customer retention, as we know for the fact that even a 5% increase in customer retention can help your business to boost its profit to almost 25%.
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How to Build Customer Loyalty in Retail- Best Practices
Customer retention should be the key focus to successfully establish a retail business. Hence customer loyalty in retail is extremely imperative, to eventually generate greater ROI.
- Creating personalized content for your customers can help build customer loyalty in retail business. When you work towards creating personalized content, a clear effort is portrayed from your side to build a relationship with your customers, leaving a rather strong impression on them. Personalized content works wonders, as it successfully builds a more private and intimate relationship with your customers.
- To influence your customers to engage further with your brand, loyalty programs can be the best. Creating an exclusive loyalty program will not only assure repeated engagements but will also motivate existing customers to reach a higher tier in loyalty programs to get added benefits and perks. Almost 64% of retail businesses have loyalty programs that help them secure their ties with customers. An efficient loyalty program will assure customer retention along with brand awareness.
- Carefully analyzing data to understand customer buying behavior is an essential practice that is often followed by retail giants to establish a solid foundation with their customers. To treat your customers better, it is important to know them and their choices as their purchases can say and reflect a lot about their personal preferences and habits. Feedbacks are more than just feedback. A feedback is more of a social proof that reflects on genuine and unbiased opinions regarding the product and services of a brand. Feedback from a loyal customer is an excellent process of telling other interested candidates that your brand is dedicated and committed to serving people effectively.
- Omnichannel loyalty programs offer the best shopping experience across all channels. They ensure meaningful customer engagement across all touchpoints seamlessly.
Strategies on how to build a loyalty program
If your brand wants to promote customer loyalty, planning out an effective strategy and implementing it flawlessly should be the prior steps to engage and surprise customers successfully. Starbucks claims their customer loyalty program helped them in 26% rise in profit and 11% jump in total revenue for 2013’s second quarter fiscal results. Below mentioned are few exclusive strategies:
- It’s important to align your strategy with customer needs. As a modern marketer, you need to make sure that your customer has access across several touchpoints. This strengthens their interaction with you. Omnichannel approach delivers consistent experiences for the customer across channels, devices and platforms.
- Before starting a loyalty program, identify your business objectives. Also, customers’ expectations and preferences through surveys, interviews, or feedback. This is the essential step to estimate how well will your program be received by customers and what upgrades will be needed.
- Determine your loyalty program type and then the program rewards, the rewards that you select should be valuable for the customer and in most cases tailor made and also make financial sense to your business. The reward system should be easy to understand and the incentives should be simple to win to keep customers motivated. Experiential rewards are popular because they make customers feel important, adding value. They also help your business create a differentiated edge and generate long-term loyalty in your customers.
A robust, full-featured, complete Social-enabled customer loyalty program helps to increase your customer’s lifetime value, build brand recognition, increase conversion rates, and grow your brand advocates. Choosing Annex Cloud loyalty suite for your business is recommended because it offers omni-channel solutions across all marketing channels, a dedicated Client Success Manager and an Implementation Architect to share best practices to form a strategic plan, customized loyalty solutions, powerful dashboard with ROI focused reporting and analytics.