• Ssemujju Lewis E

What Is Customer Loyalty?

You keep your customers if your service satisfies what they want, and that's the backbone of customer loyalty.


Customer loyalty refers to measuring a customer’s possibility to renew business with a company or brand. It results from customer satisfaction, the overall value of the goods or services a customer has gained from a business and a positive customer experience. One of the main reasons to endorse customer loyalty is because those customers can assist you in raising your startup faster than your sales and marketing teams.


Also, figures explain why customer loyalty is significant to your success. In other words, loyalty is about likability and trust the product and brand. Customers who trust the companies they do business with are more likely to purchase again in the future.


Why is customer loyalty very vital?

Customer loyalty is something all enterprises should embrace, whether small, medium, large or mushrooming enterprises. They should all set customer loyalty as one of the indicators of meeting the clients of their products and also use it as an opportunity to outweigh their competitors on the market: This is a starting point for a company to attract and keep happy clients who consume your products thus driving revenue and meeting obligations.



Customers spend more time and money with the brands they are loyal to. These buyers also tell their relatives and friends about those brands, which drives referral traffic and word-of-mouth marketing. It also fosters a strong sense of confidence or faith between your brand and clients. When the customers decide to return to your business, the value they are getting out of the relationship outweighs the possible benefits from one of your arrivals, thus an opportunity to grow your business more.

How to keep customers loyal?
  • Be truthful to your customers.

  • Show a good attitude to your customers.

  • Scratch the program entirely.

  • Build a valuable community for your clients

1. Being truthful to your customers:

The owner’s equity should be as generous as your customers are to you! And if your loyalty program requires customers to spend more money and much time just to be rewarded with meager discounts and samples, the company is doing it wrongly, Instead walk the walk and show your clients how much you value their support to your business by offering perks that are so good. This would be more loyal to your customers and attract new customers to become members.


2. Show an excellent attitude to your customers:

Some entrepreneurs think that offering a loyalty program expressing their gratitude for their business and loyalty is enough to retain the existing clients and attract more new customers. Think again: companies routinely bombarded some of your customers, and your competitors are also included. The small things you do that keep customers loyal include expressing your gratitude through handwritten notes or direct one-to-one messages. These include thanks notes in their products deliveries or purchase confirmation emails as one of the market strategies to compete with your competitors.


3. Scratch the program completely:

This fact minimalist advance works best for companies that sell unique products or services. However, that doesn’t necessarily mean you offer the lowest price or the best quality. Considering how many businesses provide loyal programs, one innovative idea to make you stand out is to trade the idea of employing a program that will beat your arrivals instead and build loyalty by providing customers with awesome benefits related to your business and products with every purchase.


4. Build a valuable community for your customers:

As the online community progress, an entrepreneur may honor the customers to keep things organized. Having a consistent system ensures fairness and keeps customers satisfied over time. Clients will always commerce their peers more than they trust your business.



Types of customer loyalty programs

1. Point-based loyalty program

2. Tiered loyalty program

3. Paid loyalty program

4. Value-based loyalty program

5. Partnership loyalty program

6. Game-based loyalty program


1. Point-based loyalty program:

This is the most common loyalty program line in existence that frequent customers earn points that translate into rewards such as a discount code or other special offers.


2. Tiered loyalty program:

This helps to find the difference between the points and tiered systems. Customers get to extract short-term against long-term value from the loyalty program. Therefore, you may get tiered programs that work better for high commitment, higher price-point businesses like airlines, hospitality, or insurance companies.


3. Paid loyalty program:

It is meant to break down barriers between clients and businesses. This type helps businesses identify factors that may cause customers to leave the business. Then, companies can adopt a fee-based loyalty program to address those specific obstacles.


4. Value-based loyalty:

As an entrepreneur, you have to understand what your customers require from you to identify the values and needs of your target audience. In doing it, you can encourage customer loyalty by targeting those personalities. In addition, some enterprises may get more significant success in resonating with their aims by offering value in ways unconnected to money; thus, this builds a unique connection with customers and loyalty.


5. Partnership loyalty program:

This strategy can be an effective way to retain customers and help the company grow. When a company provides its clients with relevant value beyond what the company alone can offer to its clients, it shows them that it understands and cares about their challenges and needs and helps you grow your network to reach your partners’ clients.

Six stages of customer loyalty

Customer loyalty is measured by the level of commitment that the client shows to the company. There are six stages of customer loyalty, and every step increases the amount of dedication the customer indicates.


The six stages of customer loyalty are;

1. Awareness; Here, every customer knows the company and its offers to a member.

2. Research; more clients prefer to purchase the products online or have seen or visited the website.

3. Buy; clients have bought products or services.

4. Customers should use; products or services purchased.

5. Repeat; customer purchases from the company again.

6. Refer; potential clients refer their relatives and friends to the company.



The fundamental elements of customer loyalty

There are four elements of customer loyalty. Each component plays a role in retaining or keeping a client returning.


1. Expectations:

It is essential to know what value your potential clients get from a product or service.


2. Service:

It consists of people behind the brand, such as engaged employees and a dedicated customer team, and this is where the customers will get the most value from their purchases.


3. Engagement:

Engagement is significant for businesses that don’t have regular transaction opportunities. Membership organizations, for example, must have substantial membership benefits that can express regular value.


4. Value:

This includes how a brand matches the identity of the clients. For example, most people prefer to do business with a company that matches their values, such as environmental friendliness or community involvement.


How to measure customer loyalty

When customers are loyal to a definite brand, they are not simply influenced by accessibility or pricing. They are willing to give more as long they get the exact worth of products or services they know. Other characteristics of a loyal customer include the following;

  • They are inactive in looking for different suppliers

  • They are more willing to submit a brand to their relatives and friends

  • They are not open to pitches from competing companies

  • They are not close to other goods and services provided by a particular business

  • They are more understanding when issues occur and trust businesses to fix them

  • They offer feedback on how a brand can promote its product or services

  • As long as there is a need for customers, they will keep purchasing from a business.

All businesses should strive to improve customer loyalty to keep clients purchasing and promoting their brand to new audiences. With email marketing, brands can boost relationships with their existing customers, thus improving their loyalty. Email marketers build relationships by sending relevant campaigns to increase retention and build customer loyalty, yielding quicker growth than other marketing strategies.


How to build customer loyalty
  • Reward loyal customers with a loyalty program.

  • Make customer care a priority for the brand.

  • Boost customer experience by introducing VIP tiers

  • Segment your clients

  • Send event-based emails

  • Optimize the businesses’ referral program

  • Encourage customers to give feedback and act on it

A business intends to make its buyers happy because potential customers will be willing to spend more money on its products or services more often. This benefit of having a good relationship with customers should make any business invest in building customer loyalty.


Related: 8 Customer Retention Techniques That Work


Here are some practical ways to do that in a more well explained and detailed manner.


1. Reward potential customers with a loyalty program

A reward system for potential buyers is a great way to keep them returning. The simplest and most popular loyalty programs use a point system: customers earn loyalty points every time they buy from the brand. Then, when accumulated, these points earn them a reward, e.g., discounts, special client treatment, and freebies. Another loyalty program is a card-based system where customers get rewarded for loading up and spending money through the card. With a loyalty program that rewards customers with monetary or non-monetary gifts, people will feel compelled to keep coming back.



2. Build customer care a habit for the brand

A fundamental part of any brand is customer service. An effective client relationship management strategy translates to more focused solutions for specific customer desires. First, learn all you can about the brand’s different customer segments, including their buying habits, favorites, feedback about products, or the brand as a whole. Then, use this information to improve the service. Also, make sure employees dealing with customers directly have the data to serve customers effectively.


3. Improve customer experience by introducing VIP tiers

Social status is a great motivator and influencer of customer behavior and can be leveraged in a business’s customer loyalty strategy. By adding VIP tiers for the most loyal customers, a company can boost loyalty among existing customers and entice new and less engaged customers to interact more with the brand. Start with smaller rewards for all customers in the program and encourage repeat purchases by increasing each step up the loyalty ladder.


4. Segment your customers

It isn’t easy to visualize any customer loyalty program without a personalized approach. It allows every customer to feel special and cared for. To be at the right time with the right message, use segmentation. It will enable marketers to divide their mailing list into segments according to age, gender, geographic location, occupation, preferences, interests, engagement, and so on. Then, they craft different email campaigns with relevant offers to each group.


5. Send occasion-based emails

This is the best factor to personalize communication with your clients. Stop sending the same email to the entire mailing list and choose event-based marketing. This means that every time a user performs a specific action interacting with your brand, you automatically respond to their relevant email efforts.


6. Encourage customers to give feedback and act on it

Make it easy for customers to reach the brand and encourage them to provide feedback. For example, ask them why they prefer to buy from the brand instead of competitors and areas they think the business could improve. Also, set up a dedicated contact line for customers who can get assistance with. Lastly, always thank customers after giving feedback and using it to identify problem areas in the business.


Additional guidelines to Increasing Customer Loyalty

  • Make the loyalty program visible on the site: the more visible and accessible it is, the more likely customers will engage and value it.

  • Speak the customer’s language to make the brand relatable: use words and symbols that your audience can understand.

  • Offer flexible payment plans: for example, customers can pay for a product little by little through flexible monthly plans.

  • Build emotional relationships with customers for long-lasting loyalty: show each customer how valuable they are to the brand by creating an experience that caters to their specific needs.

In conclusion, customer loyalty is all you need to boost your business; relevant value to your customers translates into continued customer support, which leads to continuous accumulation of profits and further generation of revenue for the company.




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