• 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.