What is customer loyalty?

Customer loyalty happens when a customer associates your business with enough positive experiences that they choose to come back and do business with you whenever they need or want something you offer. When a customer is not loyal to a business, they will more than likely shop where it's most convenient - and that's not always you. Creating customer loyalty will ensure that your customers will not only choose you every time, but they'll encourage others to do the same!

Why is customer loyalty so important?

Obtaining new customers is expensive, not to mention time-consuming! It costs 50 percent more to obtain a new customer than it does to retain an existing one. After all, on average 65 percent of a company's business comes from existing customers, and a lot of those customers are the ones who are responsible for bringing in new ones.

Customer Loyalty Programs

There are many different ways you can increase your loyalty and customer retention. One of the best ways is by implementing a customer loyalty program. Before we go over the different types of programs, here are some simple ways to create positive experiences for your customers!

Make conversation.

The best way to spark a positive experience with your customers is to make conversation! Try to get to know them, so that not only will you remember them, but they'll remember you. These personal connections and associations will keep you at the top of their mind when they're deciding where to shop.

Create a community.

People are more loyal to those they consider a part of their community. This goes for businesses too! One of the easiest ways to invoke customer loyalty is to make each and every customer feel like a part of your business's community when they shop with you. You can showcase what it's like to be a part of your community through social media!

Interact on social media.

Speaking of social media, don't just post on it! Use platforms like Facebook and Instagram to interact with your customers. Not only is this an easy way to make conversation and create a feeling of community, but it also creates the perfect opportunity for your current customers to share your business with new customers.

Thank them for their business.

Don't forget the most important part of doing business - gratitude. “Thank you” goes a long way when it comes to showing appreciation for your customers and making them feel welcomed. People naturally like to help others, so if they know you appreciate them, they'll be more likely to help by choosing your business!

These are just a few of the many ways you can create customer loyalty. If you want to take it a step further, you can implement a customer loyalty program like one of the ones below! Here are a few of our favorites:

Point-Based Programs

The point-based customer loyalty program is pretty simple! It basically means that a customer will receive a certain number of points based on the amount they spend. In this case, customers are encouraged to come back to do business with you because their goal is to build up their points in order to redeem a prize. The prizes can be anything relevant to your company, and can increase in value as the number of points increases!

This type of program is recommended for businesses that offer products or services that can be used multiple times, like florists. For example, a flower shop would benefit greatly from a point-based program because the same customers may come back frequently, for birthday gifts, anniversaries, or just because flowers. A point-based program would not be suitable for a plumbing or roofing company because a customer doesn't need those services as often.

Charity Programs

A charity-based customer loyalty program is a win-win-win situation! Customers are inclined to support your business because you support a knowledgeable charity. Whether you're partnered with a local or international organization, your customers are happy to help when they know it's for a good cause. When a customer chooses to do business with you because you support a charity, the charity gains support, your business gains support, and your customer leaves happy.

This type of program is great for any business but is especially beneficial for those that only see their customers once, twice, or even a few times. If a customer is deciding where to shop for something they may never shop for again, they'll consider many reasons why they should or should not do business with a certain company. If they know your company supports a charity, that may be their deciding factor!

Community Programs

Community-based customer loyalty programs are great for small businesses. With community programs, it's about giving your customers things that will make them happy just because you appreciate their business. For example, many businesses with community-based programs give their customers a gift on their birthday or a free item just for shopping with them to make them feel welcome.

Community programs are great for small businesses looking to expand their reach. A good community is worth talking about and will give your customers another reason to share your business with others!

Start thinking about ways in which you can improve your customer loyalty. Looking for help creating your community on social media? Our Social Media Team can help!