How To Develop Customer Loyalty For Your Product Or Service

 

By Chuck Cohn, Aug 2015

 

Both B2B and B2C companies can benefit greatly from devoting resources to initiatives that help develop customer loyalty. Gartner, a technology research firm, estimates that by 2018, B2B businesses that employ effective personalization techniques on their e-commerce websites will outsell competitors who lack this personalization by 30%.

 

On average, loyal customers are worth up to 10 times as much as their initial purchase. To increase the likelihood that your company sees, and benefits from, this repeat business, consider implementing the three measures discussed here. Each idea has been tremendously beneficial as Varsity Tutors has grown from operating in one city to several dozen.

 

1. Develop a positive feedback loop

 

One of the best ways to encourage customer loyalty is to develop a positive end-to-end user experience that makes your consumers return again and again. Your user experience begins when a potential customer first learns of your brand, and it continues through his or her use of your product or service.

 

Why is user experience so important? One-third of consumers cite a positive experience as a significant factor in their brand loyalty. Conversely, up to 2/3 of customers see a negative experience as a compelling reason to change brands.

 

2. Listen to and respect customer feedback

 

Listening to and respecting customer feedback does not mean that you must cater to every consumer whim. Instead, aim to provide a forum or other means of communication between you and your current and future customers. Tools such as email and social media can make this relatively straightforward to implement.

 

Industry surveys show that 24% of American adults have commented on or reviewed a product or service online – this means that almost a quarter of your customers could be providing you with feedback or writing reviews about your product or service. Consider using these comments to identify possible improvements to your product or service, as well as to help others learn about your organization. Your customers are often your best brand ambassadors, even more so than any marketing campaign you might choose to run.

 

3. Utilize data and metrics to analyze and encourage loyalty

 

According to an industry survey, 55% of retailers reported an increase in customer loyalty after incorporating personalization features into their marketing campaigns. To achieve a similar effect, try utilizing technology platforms to track consumer information, including how, when, and what they buy. This can help you determine what future purchases to recommend to customers, as well as when and how to recommend them (i.e. via email, physical mail, social media, etc.).

 

Once you identify the best methods for collecting and analyzing customer data and feedback, this information can help you develop customer loyalty for your product or service in the most effective way possible. Your customers will not only be happier, but your business performance will be improved due to the higher revenue and margin associated with more repeat purchases.

 

[newsletter form="1"]