How to Build Customer Loyalty

How to Build Customer Loyalty

The success of your business depends on customer satisfaction. Here’s how to focus your energy on improving experiences and increasing customer loyalty

Customer loyalty is one sign that you’re doing something right. When individuals feel comfortable coming back to you for products and services time and again, it means they trust you. And, it means that your business will benefit from referrals and savings on marketing costs, not to mention creating stronger bonds with those you’re serving and growing the business. 

According to KPMG data, 86% of consumers will recommend a brand that they’re loyal to, and 46% of loyal customers will still stick around after a bad experience. To increase business growth and brand awareness, don’t underestimate the power of loyal customers.

Here is how you can start building customer loyalty.

Build relationships based on more than purchases

Customers respond to genuine messaging and companies driven by integrity and compassion. Instead of trying to make a sale when you interact with a potential customer, show them your personality and why you do what you do. Ask them questions about their needs and priorities. Focus on the relationship and building trust, rather than trying to convince them of something.

This kind of thinking leads to better bonds that are built on mutual respect. Your customers will want to continue working with you when they know they can depend on you, and when they know what to expect. You want them to choose you over your competitors because of familiarity and brand recognition.

The same KPMG report showed that the majority of consumers (59%) are more likely to feel a strong personal connection to the brands they’re most loyal to. So start fostering those lasting bonds now. Show your customers that you care about what they want.

Create a customer loyalty program

Customer rewards or loyalty programs encourage people to continue using your services again and again. When they make a purchase or take a specific action, they receive a reward, like points. When they have accumulated a certain amount of points, they get something free or a discount on your products.

Get creative with your program. Think of ways you can engage even more people. For example, reward current customers if they refer a friend or post something about you on social media. This helps you keep your current relationships strong with rewards and alerts other people about what’s great about your company.

According to the Loyalty Report from Bond Brand Loyalty, 72% of consumers say they’re more likely to recommend brands with good loyalty programs. And, 64% alter the amount they’re spending to maximize their points earned.

Take advantage of these statistics and start rewarding your loyal customers.

Integrate a customer feedback system

Another strategy to build customer loyalty is incorporating customer feedback into your operations. Feedback systems provide benefits to both you and your customers. You’re showing customers that their opinions and experiences with your business matter while gathering valuable information about what’s working and what isn’t with your products or services.

Allow your customers to provide feedback, whether in the form of a survey or simple inquiry and use that information to understand what matters to them. Take what they say seriously and follow up for more information if necessary.

Remember that negative feedback is better than none at all. Use any negative comments to figure out what you can improve or to identify areas for additional training opportunities.

Stay in it for the long haul

Remember that building customer loyalty doesn’t just happen overnight. It takes time to find the right methods and for customers to be 100% on board, especially if your company is young. But customer loyalty should always be a top priority. It should drive decision making throughout the business.

Remain open to change. Markets and consumer priorities alter based on several external factors, so stay flexible to what your audience wants. Continue researching trends and remain active on social media platforms to keep tabs on your customers’ changing preferences.

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Contact the team at VendorSmart to learn more.