Across every industry companies are battling increasing competition which means more choice for consumers as to where they will spend their money.
Having satisfied and long-term customers is crucial for repeat revenue and brand longevity.60% of loyal customers make more frequent purchases while around 90% of customers who feel loyalty and trust towards a company are more likely to share reviews and ratings. Happy customers will become ambassadors for your business; important given the weight consumers place on word-of-mouth.
While growing your customer base is important, it is worth noting that it costs five times more to acquire a new customer than to retain an existing one. In other words, fostering loyal relationships with your existing customers is a strategic move rather than a nice-to-have.
So how can you turn current customers into repeat brand-lovers?
The secret to customer loyalty is connection. Customers want to feel connected to the brands they use and to feel valued for their custom. They want unique, positive experiences not once, but over and over. To effectively form these personal connections, you have to know who your customer is and what they want. This is where leveraging your customer data becomes important.
1. Build an insight-based customer profile
Taking the insights from your customer data allows you to create a full profile of the individual and deliver them a personalised service which strengthens loyalty. This might range from their occupation to transaction histories and travel preferences, empowering you to better communicate with and delight your customers.
2. Reach out with relevancy
This data will help you determine the most potent ways to market to your customers. For instance, knowing your customer’s car insurance renewal habits will help you to timely pre-empt them with special personalised offers to ensure they choose your company again. Supermarkets might offer a consumer a voucher on an item they regularly purchase and offers based on products they might enjoy in the future. Customers will appreciate the exclusivity feeling and feel appreciated as a customer. Frequent, relevant interactions is the key to long-lasting customer relationships.
3. Loyalty programmes which they will love
Loyalty programmes can be hugely successful as long as you are offering customers something they will value. Reebok has recently launched is first customer loyalty programme, Unlocked, with a points-based system. This rewards consumers not only for purchases but for social media interactions, product reviews and more. Loyalty members can also enjoy brand-related rewards such as workout videos and perks from affiliated health brands. As Reebok’s Head of Digital, Matt Blonder, said Unlocked will reward customers with, “experiences that we know resonate with them and speak to their passions.”
If you have an insight-rich understanding of your consumer, you can share relevant news and deliver and predict tailored rewards, all via the channels you know they use. This is the way to ensure deeper connections with customers who then trust and stay with your business.