When it comes to managing customer relationships, we often overlook the power of customer loyalty. Customer loyalty can be one of the aspects that can make or break a business. That said, in the long run, it is easier to keep your existing customers as opposed to attracting new ones. Keeping your customers loyal is a win-win for both your business and your customers. Your business will be able to prosper, which in turn, will provide your customers with new products that keep satisfying their needs. At the end of the day, loyalty is an emotional attachment to a brand or product, one that can only be felt through personal connection. When customers appreciate your product or service and how it can benefit them, you’ve made a loyal customer.
We share seven ways why it’s important to keep your customers loyal.
They buy more
This may seem like common sense, but the happier the customer is with your product, the more they will buy from you. And oftentimes, it’s not even the same product they reach for; they will look at what else you have to offer and purchase from another product line. Along with that, your customers will be willing to pay more for your product, allowing you to adjust the price as needed based on business demand. Increased customer loyalty means that a customer’s demand for a product becomes inelastic, meaning they become resistant to price, no matter how much it increases. They love and believe in the product so much that they see the monetary value behind it, as the product contributes to their way of life.
They refer you
If customers like your product, they are more likely to refer you than not. This can come via word of mouth, through social media, and other channels of communication. The business benefit of this is huge; it saves you money and time with marketing and advertising because you get free advertising from your customers. Make sure you engage with them on social media, reposting and retweeting their positive feedback on your own channels. By doing this, you basically get free social media posts—all it took was a click of a button. Referrals of your product from customers mean that their opinions are unbiased, which in turn, means that they are genuine. Since there is no sponsorship, a customer’s review is their true feelings, so if it’s positive, it’s a huge win for you!
They are more forgiving
So you messed up an order. Or your order got delayed. Chances are, loyal customers are willing to let these things slide as opposed to non-loyal customers. Loyal customers give employees the empowerment they need to correct the problem in a “no harm, no foul” way. The best part—these customers usually don’t mind if they get something in return like a store credit. They are more sympathetic towards the situation, understanding that employees are people too. All a loyal customer wants is for their error to be corrected in a timely manner. If your business can deliver that, then they are sure to get an even more loyal customer.
They are more engaged
When you have a loyal customer, they are more likely to be engaged with your brand and products. They will follow you on social media, like your content, and participate in any social conversations that come up. Additionally, companies with loyal customers will more likely have more engaged employees. These are employees who are genuinely engaged in their work and are willing to stay at the company. Thus, the company saves time and money because you don’t have to spend money attracting, hiring, and training new staff. You already have knowledgeable people at all levels of the organization serving customers and each other.
They are more innovative
Companies who have more loyal customers tend to outpace their competitors when it comes to innovation. Loyal customers provide a jumping off point for innovative solutions that continue to meet their evolving needs. An example of this is Southwest Airlines and their 20-minute plane turnaround time. Their customers are some of the most loyal ones out there who value on-time travel. Southwest responded to that by ensuring that almost all of their planes leave on time, not held up by the turnaround time. Not only does this make your customers happy and meet their needs, but you’re also rewarding them for their loyalty.
They suggest improvements
Loyal customers are going to be the ones who reach out to you to suggest improvements in product quality, process, and more. They already love your product and they want to help you improve it. Some of the best product enhancements are because of customer suggestions. If your R&D department is stuck on a new way to innovate a product, take a look at comments on social media, messages, and emails to see if there is something in there you can use as inspiration. Your customers know your product just as well as you do, so use them!
Customer loyalty is important, so make an effort to maintain and increase your customer loyalty to have customers that will help you boost your business.