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Customer loyalty is a person’s willingness to interact with and buy from a specific company continuously. If you can create memorable, positive experiences for your customers, you’ll increase the chances of them returning for more and spending more per purchase.

Studies show that loyal customers spend 67% more on products and services than new customers. So, even though your most loyal customers might only make up 20% of your audience, they provide up to 80% of the revenue.

When it’s 5x easier to retain a customer than acquire a new one, numbers like these are hard to ignore.  This is why brands that focus on creating valuable experiences and stand-out service for customers have already reaped the rewards of repeat business and increased customer lifetime value.

Customers loyal to a specific brand are not easily influenced by availability or pricing. They are willing to pay more if they get the same quality product or service they are familiar with and love.

Other characteristics of a loyal customer include the following:

  • They are not actively searching for different suppliers;
  • They are more willing to refer a brand to their family and friends;
  • They are not open to pitches from competing companies;
  • They are available for other goods or services provided by a particular business;
  • They are more understanding when issues occur and trust a business to fix them;
  • They offer feedback on how a brand can improve its products or services;
  • They will keep purchasing from a company as long as needed.

All businesses should strive to improve customer loyalty to keep clients purchasing and make them promote their brand to new audiences. With email marketing, brands can boost relationships with existing customers, improving adherence. Email marketers build relationships by sending relevant campaigns that increase retention and customer loyalty, yielding quicker growth than other marketing strategies.

What is Customer Loyalty & Why is it Important?

Customer loyalty measures how likely your customers are to repeat business with you.

Different industries have various ways of measuring loyalty, but the most basic method is to look at the number of purchases over a customer’s lifetime in your database. Repeat buyers are your most valuable customers. Though they may not be significant purchasers, it is likely that over time, their revenue will top from big one-time buyers.

What is Customer Loyalty & Why is it Important?

Different types of loyal customers

Customers are loyal to businesses for specific reasons—low prices, convenience, company values, or product quality. Here are a few different types of loyal customers.

Satisfied customers

Also known as happy customers, these buyers genuinely like your products or services and regularly make purchases. Though they may be satisfied, they can easily be swayed to switch to a competitor for a better deal, discount, or experience.

Convenience loyal

These customers shop with you because it’s convenient for them. They may appreciate the ease of making a purchase, the location, or the shipping speed. Convenience makes them stay with you for the long haul—and they’re willing to pay more for it.

Loyalty-program loyal

These shoppers are loyal only to your loyalty program—not your brand. They’ll make purchases to get discounts or freebies. If they see value in your loyalty or rewards program, they’ll continue to buy from you instead of your competitors.

Low-price loyal

These customers buy from you because you offer the lowest price or the best deal compared to the competition. While shoppers will stick around if prices remain low, they’ll also quickly leave for a better deal elsewhere.

Truly loyal customers

Indeed loyal customers are your biggest fans, and it’s improbable that they would ever leave you for a competitor. They make frequent purchases, provide feedback, participate in your loyalty program, and encourage friends and family to buy from you.

Strategies for Increasing Customer Loyalty

Customer loyalty isn’t something you can work on once and then automate later. It’s a relationship that needs to be nurtured and cultivated—or it will wither like a plant without water and sunlight.

Many qualities we value in our relationships also apply to our customer relationships. Among them: consistency, being a good listener, acting upon what you learn, and being honest. The ideal way to build loyalty is by understanding the customer’s values and building around those wants and needs. Follow these seven tips to build customer loyalty.

Strategies for Increasing Customer Loyalty

Make things easy for customers.

Keeping customers isn’t about creating a flawless product or service that perfectly meets their needs. It’s about providing a great user experience while making their buying choice a no-brainer. One way to drive customer loyalty is to create simple, convenient experiences.

Provide excellent service

Companies known for inspiring customer loyalty also provide great customer service. Customers who have a problem or need answers want a seamless experience—no hoops to jump through.

Be proactive: Anticipating your customer’s next question and helping them resolve issues before they start. Excellent customer service positions your brand as a strategic partner, not a one-off problem-solver.

Hire agents with soft skills: A well-trained support team can fix immediate problems, but agents who provide a positive experience can help you build lasting partnerships. Soft skills include developing empathy, establishing rapport, and emotionally connecting with customers under pressure.

Make personal connections: Magnolia, the famous home decor brand, defines success as more than helping customers with billing or shipping issues: it means making personal connections and creating community. Customers are just as likely to call for “transactional” support as “experiential” support—sharing their experiences with agents trained to lend a kind ear.

Meet customers where they are

It’s essential to deliver an omnichannel experience to meet customers where they are and create a convenient, conversational experience across platforms. According to the Zendesk Customer Experience Trends Report 2022, 93 percent of customers will spend more with companies that offer their preferred method of communication to reach customer service.

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