Strategies to build customer loyalty and increase profits
Which customer loyalty programs are effective? The best ways to build customer loyalty will depend on your business, your customer base, and the products and services you sell. Here are 9 strategies that can strengthen customer loyalty and increase your profit margin.
1. Maintain a customer communication calendar
Avoid letting customers fall through the cracks by tracking how long it’s been since an existing customer interacted with your business. You can re-engage inactive customers with promotional offers. You can also acknowledge milestones like birthdays or get ahead of subscription expiration dates.
2. Send a company newsletter
Email newsletters help keep your brand fresh in the mind of your customers. Simple and inexpensive, email marketing can have a surprising return on investment (ROI), with an average of $42 return for every $1 spent.
3. Launch a customer education program
Help your customers succeed by giving them the information they need. Your customer education program can be focused on your product or service, or it can include supporting information as well. For example, a company that delivers hair color would offer detailed instructions on choosing and applying hair color. They might also add sections on homemade formulas to remedy dry or overtreated hair and how to keep your hair healthy.
4. Implement a multichannel or omni-channel customer service system
Combine live chat, call-in customer service, chatbots, email customer service, and a comprehensive FAQ section to make it easy for customers to get answers where and when they need them.
5. Deliver on your promises
Consistency builds trust. Customers appreciate a business that reliably delivers on its promises.
6. Own your mistakes
Up to half of consumers will leave a company after only one bad experience. Every business makes mistakes. When they do happen, it’s essential to address them quickly to show customers their business is appreciated.
7. Surprise them with added value
Customers remember and appreciate a positive experience. Events, contests, and vibrant customer communities are all ways to deliver more value.
8. Solicit and share positive feedback and testimonials
Social proof is a powerful persuader. 88% of customers trust online reviews as much as they trust referrals from friends and family. Plus, asking for feedback can help establish an emotional connection with your customers.
9. Reward customer loyalty
Customer loyalty programs give people who already enjoy buying from your company incentive to come back. Loyalty programs inspire customers to spend more at your business because they receive benefits in return.
If your business has multiple related brands, you also have the option to cross-sell. Since a customer is interested in something you provided, they are likely to be interested in a product from a related brand, and reaching out is easy when you have a mutually beneficial opportunity to share.