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The importance of Customer Loyalty and How You Can Cultivate It

If there’s one thing you’d want to keep in your business, it should be loyal customers. No matter how innovative your products are or how affordable their prices, if you don’t have customers who will choose you over any competitor, your business won’t thrive.

Industry statistics state that returning customers are responsible for 65 percent of a business’s profits. What’s more, acquiring a new customer costs a company five percent more than keeping an existing one. Loyal customers also spend more the longer they have been with a business than they will if they’re new. And if you increase your customer retention by at least five percent, your profits can increase by up to 95 percent. All these numbers show that earning your customers’ loyalties literally pays.

How to Earn Your Customers’ Loyalty

The way customers find a brand or business to be loyal to is like online dating. They swipe right on several companies, go on “dates” with each, and stick with the one that consistently gives them the best time.

So, what can you do to give your customers the best experience and keep them coming back to you? We have a few suggestions below.

  1. Give them a warm welcome

When a customer is new to your business, they will likely have plenty of questions. These might be about your products, your prices, or your processes. You can ensure they learn everything they need to by using the best software that helps with customer onboarding. Customer onboarding is crucial in earning a customer’s loyalty because you’ll be able to make their experience as smooth as possible so that they can leave with a great first impression of your business.

  1. Make excellent customer service a priority

Did you know that 62 percent of customers share their bad experiences with their peers? And with social media, it’s not just word of mouth anymore. If someone has a bad experience with your business, they can post a review online, which potential customers might see. On the other hand, 72 percent of customers share their great experience with others, the same great experience that 67 percent of them would pay higher for. In short, bad customer service can cost you, but excellent customer service pays.

  1. Provide them with perks

Imagine if you gave a customer a membership card that gives them a five percent cashback every time they transact with you. Unless the competition is offering a similar but higher discount, that customer is more likely to come back to you. There’s also psychology involved in discounts. People will spend more because of the perceived value that they save. So, by creating a rewards program, not only are you encouraging them to become loyal, but you’re also ensuring future sales.

  1. Always offer options

Customers stay loyal because they know what to expect from you, but it doesn’t hurt to offer them alternatives, too. From variations of your products to different payment plans, giving your customers options makes them feel valued because you’re catering to their changing needs.

You don’t have to labor over out-of-the-box marketing tactics to attract new customers. Follow the pointers above, and you’ll be able to rely on the loyalty of your existing customers.