Top Ways to Increase Customer Loyalty
A business that can increase customer loyalty will benefit in many ways, including increasing its bottom line. In fact, according to a study by Bain & Company, Inc, a 5 percent increase in customer retention will result in a 25 percent increase in profits.
How, then, does one create loyal customers?
Here are four simple ways to do it:
1. Always make a good first impression. A first impression can be made through the product or service delivered, a place of business a customer walks into, or even how well a customer service problem is handled. Ultimately, making a first impression usually has a human factor associated with it. Simply improving merchandising, product packaging, and other superficial ways of creating a good impression are insufficient. People respond more to courtesy, then to décor and glossy packaging.
2. Find ways of interacting with your customers on social media platforms. This way you will always get a clear idea of how well you’re doing. A prime example of a company that knows exactly how to use social media to listen to its customers is Starbucks Coffee. This corporation clearly demonstrates how important it is for a company to have a good profiles on places like Facebook Twitter and Google places, as well as a blog and e-mail newsletter. Engaging with customers in an informal, friendly way instantly brand building credibility.
4. Creating customer loyalty should be more than lip service. Action should be taken on customer complaints, and product improvement suggestions should be acted on. Merely asking for feedback and not doing anything with it is a ploy that customer’s will quickly see through. Even when a company receives negative feedback on a consumer review website, it should make an effort to address the issues in a professional manner.
5. Usually happy employees will result in happy customers. How employees feel about their work will rub off on how they interact with customers. When employees are given incentives to make customers happy, then they will ensure customer’s get their problems resolved. Happy customers, in turn, will write positive reviews and make referrals. All of this, of course, adds to the credibility of a company and builds a brand without the need for expensive advertising.
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