Don’t we all have that brand we always pick up from the store without even checking the price? We all have those brand which we are very loyal to. This brand can be the toilet paper we are used to buying, the peanut butter brand or the phone that we are used to, or even the football team’s tickets or merchandise we are supporting. With these brands we’re so loyal to we can adjust our budgets somehow to get the product or service. But why is this good for ecommerce businesses?
Importance of customer loyalty
Loyal customers are very valuable for any type of business. Having loyal customers can mean earning up to 10 times as much as their first purchases. Also retaining a customer is much easier than gaining a new one. Actually research show that probability of selling to an existing customer is 60-70% while probability of gaining a new one. Not only is it more difficult to gain new customers it is 6 to 7 times more expensive to gain them.
These stats are enough to show the importance of customer loyalty for any business. So, how can you increase the number of your loyal customers?
Improving Customer Service
Having a responsive and helpful customer service is a major factor in creating brand loyalty. 78% of consumers do not complete purchase due to bad service, and 86% of customers quit engaging with a company due to bad customer experience. Having a high quality customer care will help your business retain customers. For this, businesses must have trained customer service employees who have basic communication skills, and who can handle complaints effectively. 67% of customers last year were frustrated from not being able to talk to a real person and hung up the phone.
These employees must be sympathetic and listen to customers’ complaint carefully and come up with the best solution possible for both sides.
Also as the employees face the customers and their problems directly, it is also a good idea to ask them for problems customer have and possible solutions to get rid of those problems.
Creating a Personal Relationship with the Customer
If customers believe the customer service was genuine and they help the customer in the best way that they could they will most likely stay committed to the brand. 70% of the customers continue to do business with a company if it resolves a complaint in customer’s favour.
Using social media channels and directly replying to a customer is another great way to interact with customers personally. 72% of marketers are using social media to develop loyal fans. It shows how social media is a great tool for creating brand loyalty.
Also reaching them through the same channel they have reached you would help building a better relationship. If someone reaches you via social media, replying through social media helps. Or if they do not reply back it is obvious that they do not want to be contacted.
Getting feedback from the customer is the only way businesses can understand what is going right or wrong with their strategies. So getting feedback from the customers will help you improve your business. If you get bad feedback it is an excellent opportunity to solve the problem, and make customers feel better with your brand. Asking new customers why they preferred you instead of competitors, asking existing customers how you could improve things would get you the right feedback.
Getting feedback via social media is also beneficial. They usually tell how they feel more honestly. If you get more complaints it means you need to fix things, and if you get positive comments, it should encourage you in doing even better.
Also bad customer service news spread out twice as fast than a praise. So keeping things at least at an acceptable level from the start will support your business.
Customer loyalty has so many benefits for companies. And by taking some simple actions the number of loyal customers can be increased. Simply we can conclude that having a responsive and helpful customer service, establishing more personalized relationships with the customers, and taking all feedback into account are the basic steps. Being creative in these main ideas will put your business ahead in the market.
Customer loyalty can also be improved by letting them know that you have the best prices. And to make sure that you do have the best prices, you must know your competitors’ prices.
Prisync will help you track your competitors’ prices automatically, like it does with other companies from over 30 countries.