Customer loyalty is an important part of business strategy
Loyalty is a customer's positive attitude towards a company or brand, formed as a result of a positive customer experience. In simple terms, a customer will come back to you for a repeat order or purchase. They may also recommend your shop, service, restaurant, petrol station, etc. to their friends and family, or leave a positive review on social media or Google. The more people talk about you and praise you, the more loyal customers you can get. Betonlogos s.r.o. shares how to work with loyalty and which trends are relevant now.
- The price of your product. Should be attractive to the customer and meet their expectations of the product.
- The quality. Must match the price. The customer wants a quality product at a reasonable price.
- Service. Its level influences customer loyalty as much as the quality of the product. It is important for the customer to be able to find the product or service quickly, to obtain information about it, to place an order easily and to receive what he has paid for promptly. Every little thing can affect a customer's perception of your company.
- Competitors. A customer may leave if another company operating in the same segment offers better conditions with similar product quality and service levels.
Factors that influence customer loyalty:
What influences customer behaviour
In order to achieve a high level of loyalty, it is necessary to work not only on the fact that the customer has bought your product or service, but also on the fact that they were satisfied with the service, the communication with the salesperson or the manager. It costs 5 times less to retain a customer than to acquire a new one. Building loyalty and retention is important to reduce costs. To retain customers, you should closely monitor their behaviour and spending habits.
Don't miss the changes and follow the trends
Loyalty programmes, promotions, sweepstakes, giveaways, discounts - they all influence customer loyalty. People's preferences and demands for products, services and maintenance are changing. It is important to keep your finger on the pulse of loyalty trends.
Key loyalty trends in 2023
- Loyal partnerships.
- Gamification.
- Tiered benefits.
- Personalisation.
- Mobile applications.
- Flexibility.
- Premium loyalty programmes.
Let's look at each one separately.
A loyalty partnership is when two or more brands work together on a joint loyalty programme. It should not be a collaboration between competitors, but between companies that complement each other. For example, hotels and taxi services, airlines and airport coffee shops. Each has its own loyal customers. By offering a joint loyalty programme, they can help each other increase customer numbers.
Mobile app. In the age of digitalisation, more and more people want to make the most of their smartphones. Shopping, booking flights, getting services and much more can be done through gadgets. Loyalty programmes are no exception. A person wants to quickly find out how many points they have accumulated, what discount they can get the next time they buy a product or order a service, where they can get gifts, etc. A mobile app is therefore a great way to provide a multi-channel customer experience and simplify the collection of data about their spending habits.
Personalisation. Once you have information about your customers' spending habits, you can use it to develop your loyalty programme. The customer will receive an offer that is favourable and attractive to them.
Gamification. Most of today's youth play video games. Add game elements to your mobile application. It could be a simple game where the customer grows roses, for example. For a certain number of flowers grown, they earn points, which they can then use to buy roses.
Tiered rewards. The more money a customer spends on your products or services, the more benefits they receive. It's important that the benefits they receive at each stage are commensurate with their spending.
Flexibility. Don't limit your customers. Let them earn points for every product they buy. For some more, for some less - this will be the gradation of incentives. Also, do not limit the customer's ability to receive bonus goods or services to just two or three items. Give them a wide choice.
Premium loyalty programmes. The customer has to pay to join such a programme. For their money, they should receive a number of special benefits to make them feel special. Free shipping, exclusive access to products, special promotions, secret sales and permanent discounts are examples of premium programmes. You can come up with your own and make your programme even more exclusive.
Customer research
Customer research is an important part of any business. There are various techniques, questionnaires, surveys, etc. for this purpose. Constantly study changes in customer preferences and needs. This will help to influence the consumer's attitude towards your company. If the level of loyalty is decreasing, it means that you have made a mistake or that your competitors have made a better offer.
Betonlogos Czech Republic offers market research services to analyse the relevance of your product and consumer demand. We can also help you identify new supply chains and provide customer prospecting services.
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