When we start to build a business, we immediately set up several goals. And the key ones here are:
- To make a profit.
- To build a trusting relationship with the client.
Special attention should be paid to the last point, because it is the first one that greatly depends on it. Unfortunately, it is not possible to launch loyalty as a project, but it can be won. True, it is not so easy to do this, and you will have to spend time and effort.
Why customer loyalty is important
Loyalty is a powerful marketing strategy in business. Every company should strive to increase this indicator at any stage of its development. A study by Gallup shows that loyal customers spend 23% more than the average customer.
Conditions for increasing loyalty
Loyalty is influenced by several objective factors, rather than by such a subjective impression of being ‘just a nice salesperson’:
1. Product
No doubt, the first and important criterion is a product quality. Obviously, if a person does not like your product, then no advertising pushes will work here. Do agree, you are unlikely to buy plastic packaging if you need biodegradable paper bags.
2. Customer support
The second important criterion is pre- and after-sale service. This is assistance to the customer while he making purchase: honest and timely answers to his questions, suggestion of other related products or service, assistance in the selection of payment mode, etc.
3. ‘Wow’ effect
In general, these two points are enough to win the trust and loyalty of customers, but experts recommend not only to meet the needs of consumers, but also to exceed their expectations. ‘Wow’ effect means to anticipate the wants and desires and do pleasant little things to your customers.
Types of customer loyalty
There are three types of loyalty:
- True – the customer’s emotional commitment to a brand. Perhaps the most valuable type to strive for.
- Latent – a person sympathizes with the brand, but does not make a second purchase. Typically, the reason for not making a new purchase is either a financial constraint or the long life of the product.
- False – the purchase of products is regular, but there is no emotional attachment. The problem is that if your competitors happen to offer something more profitable and interesting, the customer will go to them without hesitation.
If the customer has made a purchase only once, this is a lack of loyalty. In this case, it is important to work on service and product quality, as well as to study competitors.
Stages of forming customer loyalty
This process has several stages.
1. First communication
A consumer has come to you for the first time. Perhaps he just studied your digital presentation on the Internet, or maybe contextual advertising did the trick. The customer studies the offer, evaluates the service and forms an opinion about your company. Then, the things are moving in the following scenarios:
- He buys nothing
- He postpones the purchase
- He buys right now.
Of course, the first scenario seems to be the most probable, but this does not mean that the client is lost. Maybe he doesn’t need your product urgently and will come back to you later. But he will do so only if your offers are better than those of your competitors.
The second scenario often ends in nothing, because if the product is not bought, the client may never do it. He may leave to competitors and make a choice in their favor.
The third scenario is the most successful, because there is a chance to gain customer loyalty immediately.
2. First consumption
Perhaps, this is the key moment that determines whether the client will return to you or not. It depends mainly on the quality of the product and whether the expectations match up with reality.
Besides, do not forget about the level of client support and service. Even if you have a cool product, but your sales reps are rude or careless, no quality will make the client return to you.
3. Repeated visits
If the customer is satisfied with both the quality of the product and the client support, there is a high probability that he will come back to you. It is important not to miss this moment: offer promotions, personalized discounts. Show care and consideration. Make the client distinguish your company from your competitors.
4. Commitment to the company
Of course, loyalty is not won after the first purchase, but you are already on the right track. The customer knows that you can find the right product for him, at a good price and high quality. He would hardly look around among your competitors and become a loyal buyer. The success rate of selling to such customers is known to be 60-70%
5. Customer loyalty
Even if your customer has been buying from your company for years and is satisfied with everything, you should not relax and rest on your laurels. On the contrary, you should surround him with care: offer bonuses, provide a loyalty program, present nice gifts, etc.
Remember an important rule: customer loyalty is hard to win, but easy to lose. If the quality of your product drops or the price rises unreasonably, even the most loyal customer will simply leave.
How to increase customer loyalty with email campaigns
There are lots of methods that allow you to increase customer loyalty. Starting with a banal smile and ‘thank you’, ending with complex multi-level programs.
The most popular method is still email campaign. It allows you to:
1. Study consumer behavior and segment the database
To offer something relevant to the customer, it is important to analyze their behavior, needs and pains. Only by studying these data and analyzing them correctly, you will be able to segment your audience with similar interests and behaviors, creating specific groups.
2. Personalize messages
When you address a customer by name, you show your regard for him. He feels that he is important to you. Such personalized emails can be used in such cases:
- recommending a product based on purchase history
- informing that the product, which the client had been interested in earlier, is now back on sale or has been discounted;
- Sending best wishes on personal holidays and offering a discount on these occasions.
3. Gamify communication and add drive
Diversify boring messages with games, videos, quizzes, etc. Especially it’s true if we are talking about regular customers. An interesting game or a survey will definitely not let them get bored.
4. Give extra value in messages
A boring newsletter 100% goes to spam. Try to give useful and valuable information in your messages: some tips, some stories, answers to frequently asked questions about the product, advice on how to use the product and so on.
5. Ask for customers’ opinion and take into account their preferences
Email campaign and further email exchange allow you to learn a lot about both the customer and your product and service. Ask in the messages to put a rating, to give feedback. These data will allow you to work through your weak points and improve your strengths.
As a Conclusion
Sadly or not, you can’t buy the loyalty and love of customers. It can only be earned. It is necessary to constantly work to increase customer loyalty: to monitor the quality of products/services, to improve client support services, to offer interesting programs to regular customers, etc. Using Kompass solutions, you will be able to set up all your processes in a competent and functional way.
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