Lasting loyalty can’t be bought—it has to be earned. Find out how it’s done.
Customer loyalty vs. customer retention: What’s the difference?
- Customer retention means that a customer buys from you, but they don’t necessarily have a strong affinity for your brand.
- Customer loyalty means that a customer prefers your company, and if given the choice, they would choose your brand over another.
How to increase customer retention
Once you’ve gained a new customer, you need to convince them to stick around. Show them you’re committed to providing a good experience, and of course, being good humans. Here are a few ways to win them over.
Make a good first impression
Everything you do tells a story about your brand, from your website to your customer service. Did you know that nearly half of customers would switch to a competing brand after one bad service experience? You might only have one chance, so make it count.
Be helpful
When a new or potential customer reaches out, do everything you can to help. Answer their oddly specific questions or look up something they could Google themselves. Showing someone a little kindness is an easy thing you can do to build trust.
Create a seamless experience
Customer experience is one way companies can stand out from the competition. For example, you could deploy a chatbot on your checkout page to help customers answer any lingering questions. This shows customers that you’re thinking of them every step of the way.
Show gratitude
Customer appreciation helps establish a good relationship with your customers and encourages them to come back. If they are a first-time customer, show your appreciation by giving them a discount code. Loyalty programs are another way you can thank your customers.
How to increase customer loyalty
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Making a good impression is only the first step. To cultivate loyal customers and brand advocates, you need to make a deeper connection. Here are a few ways to show your customers they can depend on you.
Be honest and real
We expect honesty from our friends, and customers expect it from companies too. A 2017 survey showed that 86 percent of people say authenticity is important when deciding what brands they like and support. This means providing customers the information they need, portraying your product accurately, and admitting mistakes even when they are big or uncomfortable.
Respect their time
More than 60 percent of customers said a speedy response was an important aspect of good customer service, according to our Customer Experience Trends Report 2020. Make sure you have the tools in place to respond quickly on the channels your customers prefer. Being able to respond on WhatsApp, for example, could set you apart from competitors.
Show empathy
Customers aren’t likely to stick around if they don’t feel heard. Listen to your customers when they provide feedback, show empathy for their experience, and then take steps to improve. Use tools like satisfaction surveys and focus groups to gain deeper insight, so you can really understand what your customers need and how you can deliver for them.
Have fun
You could provide free stickers with every package, share quick quips on social media, or create customer communities. For example, Starbucks created a Facebook group for Pumpkin Spice Latte fans to give them a space to share their love unapologetically. Customers will come for your product or service, but they’ll stay because they enjoy the community you’ve created.
Customer loyalty starts and ends with CX
Customer loyalty isn’t just about a great deal or value proposition. Every aspect of your customer experience—marketing, sales, customer support—plays a role in fostering that relationship.
You can have the best product in the world, but if your sales process is impersonal or your customer support is inconsistent, you risk losing your customers’ trust and jeopardizing the relationships that you worked so hard to establish.
Take control of your CX. Get started with a free trial today.
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