Customers are an asset to any business. That’s why loyal customers are the most treasured assets for the business. The repeated flow of customers naturally spends much more and gradually generates greater businesses. Meanwhile, new customers are a huge expense and they cost more than selling to existing customers. So a loyalty program for existing customers would be the most cost-effective way for the business. The following are some of the best ways to increase customer loyalty and retain customers.
The businesses can build and preserve customer loyalty through various schemes amongst others, like;
1. Discount Offers:
Businesses can give discounts to their repeat customers on the product they purchase regularly. It is possible for business analysts to identify different customer groups based on their gender, including students, senior citizens, and others. Therefore, the business can offer special discounts to the specified category, which will lead to significant customer retention. Moreover, on certain days or at certain times of the day, a business can offer special deals to its customers. This can increase customer loyalty.
2. Rewards:
Customers can be rewarded for their loyalty, an efficient way to attract new customers. Offers like buy one, get one free in supermarkets provide a pleasing surprise to the customers and increase the likelihood that they return.
A business can create a reward program and promote the program through its sales channel. For example, a Grocery Shop can give reward points to its customers on the purchase and the same can be added through CRM in the customer’s account, on the next purchase the customer may redeem those points to round up the total, like a cash incentive. This will support the business to retain loyal customers.
3. Reviews & Feedbacks:
The business informs its customers that they are listening to improve and serve better. Feedback from customers helps to improve business by better responding to their needs and desires. In the digital age, feedback can be asked in many different ways. SMSs, E-mails, calls can be one of the mediums amongst others. Customer feedback provides insight into the product and the experience of customers regarding the brand or product.
The businesses can offer reviews from the customers about the purchased product. The reviews are unique as they are reliable testimonials from real customers. It is possible for prospective customers to read reviews of your business and make an informed decision about whether to make a purchase from you.
The process of collecting reviews turns the customers into long-term loyal customers. The customer gave his genuine review about the brand or product. As a result, the customer becomes a brand or product advocate. The business can offer incentives for completing the reviews.
But it is more important to respond to the reviews and feedbacks of the customers, the good reviews will defiantly attract more customers and the bad ones will be a lesson for improvement.
Businesses should always respond to the customer’s reviews or feedback irrespective of whether it is positive or negative. In this way, the people will know the business is paying attention to what they have to say about the product, brand, or service. And it will also be apparent that the business values their opinions and ideas. The response should be professional, polite, and consistent with the product and brand. There must be different scripts according to the situation.
4. Social Media:
Social Media is an effective tool to determine the social sentiment of people about the product or brand. The business can anticipate which way the customers are inclined. The younger generation spent more time online as compared to the preceding generation. Social media is thus more influential on the younger generation. Social media can be a vital instrument for being in the race of the latest trends and understanding the customers, this will ensure increase customer loyalty.
5. Human Connection:
Although in this digital era, one-to-one interaction has more value. Apart from email correspondence and online chats, the best medium is a phone call which represents the human touch. As the actual person is available on phone gives more comfort to the customer.
6. Reminders on Special Days of Customers:
By sending a simple “Happy Birthday” wish email or postcard to acknowledge the customer’s special day, make a special place in the mind and heart of the customer. Businesses can convert this step into a birthday discount or free gift for the customer to help celebrate the special occasion. So, an integrated CRM system allows enterprises to keep track of special occasions, like birthdays and wedding anniversaries, so messages can be planned out proactively for each celebration.
7. Emotional Associations:
Nowadays, customer satisfaction isn’t much cherished as it once was due to current unsparing competition in business. Customers in this modern era demand more than just their basic needs are met; they also want to be seen, heard, and valued. In order to build customer experience success, a business must develop emotional relationships as well as establish a desire to belong and stand out over and above the deal. In order to enhance customer experience and ensure loyalty, emotional connections are a prevailing approach.
8. Honesty:
Everybody makes mistakes, and mistakes are part of life. However, for any business, honesty is the best policy. Whatever the issue may be honest with the customers. Trying to avoid the same problems will not lead to a solution. The best way is to acknowledge the problem and provide a solution that will increase customer loyalty.
Moreover, customers are likely to appreciate simple, sincere gratitude shown towards the organization. This will ensure their loyalty. In other words, all the customer wants is easy access to the business. So placing the business online on a social media platform and having a dedicated website and portal for it. Along with a prompt response to customer inquiries, will enable the customer to retain and develop loyalty to the business.
The only thing the customer expects from the business is that it is easily accessible. So, a well-designed social media presence, a dedicated website and online portal, and prompt responses to customer queries. And hence it will enhance the customer’s confidence in the business and keep them loyal.
These are the few methods that are known to increase customer retention among others.
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