In this article you will find out…
- How to increase your customer loyalty
- How it is measured
- Who is responsible for your customer loyalty
Quicksearch has been conducting relationship surveys for over 20 years and are experts in statistics, survey methodology and analysis.
Next year, the customer experience may have already taken over the top spot and become the differentiating factor when the customer chooses between brands. Then it is important to ensure high customer loyalty and to recognize your ambassadors. But it's one thing to identify which customers speak well of your company, and another how to make a good impression on them. When was the last time you reflected on the impression you leave on your customers?
There are three simple steps you can take to increase customer loyalty to your business and I'll get into that in a moment. First, however, we must make it clear to ourselves what customer loyalty actually means.
Customer Loyalty – what is it?
Customer Loyalty means much more than the customer continuing to buy your products. It may be that the customer stays with you out of convenience. Switching suppliers is often seen as far too cumbersome, but it does not give you any competitive advantage.
"There is a big difference between a satisfied customer and a loyal customer" — Shep Hyken
Loyal customers buy more from you than any other customer and they are willing to recommend you to others. On the other hand, communication is a prerequisite for customers to be able to develop loyalty to a company. It's about the feeling you leave with the customer; if it feels cared for and in safe custody in your company's hands or feels replaceable.
How do you measure customer loyalty?
Your most loyal customers act as ambassadors for your company and brand. NPS® is the measurement tool most people use to measure customer loyalty today. It is all based on asking a single question: "On a scale between 0 and 10, how likely is it that you would recommend us to a friend or colleague?". Those who answer with a 9 or 10 are usually counted as ambassadors. The willingness to recommend is often considered the ultimate proof of loyalty.
How do you increase customer loyalty?
No definitive way to increase customer loyalty has been developed, mainly because the concept is fuzzy and something you have to work with all the time. However, there are some things you can consider if you want to get more loyal customers.
Step 1. Listen to your customers
Studies have shown that the 80% of all suppliers consider it to have delivered clear added value over its competitors, but only the 8% of customers agree. Apparently, many companies are blind to how their customers are treated during the customer journey. The most important thing you can do then is to get yourself one feedback, i.e. ask your customers what they think and think — and then act on that feedback!
You probably already knew about this one. Of course, you have to conduct customer surveys to find out what the customers think, right? But what about doing it current? It is no longer enough to conduct longer customer surveys, perhaps once a year, something many companies forget.
"You don't earn loyalty in a day. You earn loyalty day-by-day” — Jeffrey Gitomer
It's never a good idea to guess what your customers think. It is therefore important to systematically collect all the facts you can from your customers, regularly and at all contact points. Ask for feedback after a purchase, after delivery, when contacting customer service, etc. What do your ambassadors think you are doing well? What do your critics think you should change?
Step 2. Personalize the customer experience
Today, the customer has more power than ever. It is no longer about "the customer is right". You need to focus significantly more on the customer if you want to have the biggest advantage over your competitors. We see that many consumers stay with companies that have a good reputation and a personalized brand. Communication with the customer must be informal and almost familiar.
Responding to the customer on a personal level is vital so that they do not feel like one of the crowd. Personal contact is something that today's consumers weigh heavily. Therefore, do not send out automated responses when the customer tries to contact you and your company. Think about the feeling you want to leave with the customer — the person should feel noticed and satisfied.
Focus on your ambassadors, i.e. the customers who already view your organization positively. It often feels natural to do your utmost to please the critics, but it is more difficult to convince them to stay with you. If you spend all your time on your critics, you risk losing your ambassadors.
Step 3. Thank and ask for references
In return for your customers spending money on your business and what you offer, they expect something in return. Ignoring a customer after a purchase is completed is one of the worst things you can do. You can always send a personal "Thank you!" via email or give a reward in the form of discounts or movie tickets as a way to show the customer that you care.
Again: focus on your ambassadors. It can be costly for the company to fire on critics and to replace customers you have lost. Leave it to the customers who advocate for your business. They often do a good job of recruiting new customers.
Another way to show your commitment is to ask the customer to refer you to other potential customers or partners. Loyal customers do it with pleasure. Then make sure they are given the opportunity to do so. You can do this by asking them to provide public feedback or share posts on your social media.
Who is responsible for customer loyalty?
You and everyone else who works at your company are responsible for ensuring that the customer is left with a good feeling after every contact. Developing customer loyalty is a full-time job that requires you to constantly work on building a strong relationship with your customers.
Quicksearch and Customer Loyalty
On Quick search we have been helping companies conduct customer surveys for over 20 years. We understand why feedback is so important and how best to act on it. Customer loyalty is not something to be taken for granted. It's about opening your doors to the customer, speaking to them on a personal level and then showing gratitude for the ambassadorship they show.
Get in touch with us if you want to talk further about customer loyalty or have any questions!
