Building trust with customers in a world that’s constantly changing is hard, and with today’s wealth disparity, along with the rise of inflation we’ve all witnessed over the past couple of years, trust-building has become a whole lot more challenging.
According to data collected online, there’s been a spike of around 8% over the last two years, with customers attributing the state of inflation to corporate greed. However, this isn’t entirely correct, as the numbers also show a series of broader economic shifts that occurred during the pandemic, as well as the corporate influence on pricing amid shifts in consumer demands and disrupted supply chains.
With active businesses, one of the largest operational hurdles does not only include attracting new customers but also creating a sense of loyalty that keeps them coming back for more. Whatever the niche you’re in, very few sectors can boast of being a monopoly nowadays. To stay ahead of the game, you’re expected to provide the same or over and above what your competitors are offering.
Take online casinos as a typical example. With thousands of operators, they more or less offer the same service to gamblers. True, some are better than others, but the concept of enticing players with welcome packages through no deposit bonuses and daily free spins like the ones you can get from the NoDepositRewards website has become standard. Many casinos offer loyalty programs which include free spins bonuses for existing players and a whole selection of other promotions.
Why Is Customer Loyalty So Important?
Back to the argument of customer loyalty – how valuable is it today? In an online survey, around 50% of consumers expressed pessimism when asked about the economy. Apart from that, 63% said they were willing to pay more to purchase products or services they felt loyal to.
When we put this in the wider context of consumer trends, it’s interesting to see that impulse buying took a slump, with 48% with respondents saying they’re willing to conduct more research before making a purchase this year when compared to the 32% who answered the same question last year.
But let’s not allow economic concerns to cloud our vision. The data also shows that customers are looking for more than price, with around 70% stating they’re looking for quality, 60% for convenience, and around 45% citing customer service. The good news here is that all these elements are ones you’re able to fully control in a brand, which will eventually form the foundations for your customer loyalty and satisfactory journeys.
The Loyalty Effect
Establishing loyalty isn’t rocket science, it’s simply ensuring that your customers are pleased with whatever your business is offering. The primary objective here should be to convert your existing customers into brand ambassadors through a series of satisfying experiences – here are a couple of reasons why growing your customer loyalty is crucial in business.
1. Loyal customers will become ambassadors
When a customer is pleased with a product or service and feels valued by the brand, then word-of-mouth becomes really effective. It’s natural for us to trust a recommendation coming from a friend or family member regarding a service, retailer or company. We often also rely on positive and negative customer feedback along with other user-generated content to make an informed choice before deciding to buy something. Loyal customers who have faith in your business won’t hesitate to share their great experiences with others when asked.
2. The more loyal the customers, the higher the spending
Customers who display strong loyalty traits are more likely to make larger purchases. According to a study carried out by Invesp, returning clients are likely to spend 67% more than new ones, with sales conversion rates standing from anywhere between 5% and 20% for new customers and a noteworthy 60%-70% range for returning customers.
3. Loyalty drives recurring sales
Very often, customer loyalty will be the deciding factor between needs and wants. This is especially the case with businesses that have invested in loyalty programs that incentivize the customer to purchase goods or services regularly.
Think of a client who buys a coffee every day from a shop that rewards every tenth one with a free one. In this case, the customer is more likely to return to the same coffee shop to get their card stamped, while there’s also the chance that they might increase their expenditure by adding a cookie or a cake along the way for example.
4. Loyalty reduces customer acquisition costs
Investing in customer retention and loyalty will eventually minimize your costs when compared to new customer acquisition. Studies show that whenever businesses underestimate the importance of loyalty then they often face a high rate of clients choosing other brands. According to the same Invesp study, it costs five times as much to obtain a new customer compared to preserving a returning, loyal customer. Therefore, the need to strengthen loyalty not only enhances your customer retention but also slows down the financial strains of sales, marketing, and other efforts aimed at bringing in new clients.
5. Loyal consumers make ads more effective
Taking a page from the marketing ‘rule of seven’, people who aren’t aware of your business or haven’t been exposed to your advertising will typically require seven interactions before considering a purchase. On the other hand, existing customers have already interacted with your advertising I the past and their pre-existing familiarity automatically shortens this process significantly.
Getting It Right
Brands that enjoy the highest rate of consumer loyalty have several things in common – they’re able to deliver consistent experiences across all of their channels, including bespoke messaging, ultimately rewarding their clients for their valued custom. Here are some steps you’re able to take and apply to your business to keep your customers loyal:
- Consider Optimising All Your Messaging – to make sure that your customers are receiving updated, factual and personalized information. These could include a trigger on product availability for example, or a personalized offer or promotion based on previous purchases.
- Evaluate Your Loyalty Programs – for engagement and effectiveness regularly to make sure you’re keeping up with the trends and consumer needs.
- Define What Sets Your Brand Apart From The Rest – To give the best customer experience you’re going to want to define what sets your brand apart from the rest by asking yourself what are the characteristics that define your business when compared to your competitors. How does your customer care stand out? And what product offerings or services would make a customer choose your business over someone else’s?
