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Foolproof Ways to Improve Customer Loyalty

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Customer loyalty is a gauge of how devoted customers are to a business, and is the result of a consistently positive customer experience. Following are tips on how to effectively measure, increase and maintain customer loyalty.
Customer loyalty is important to all businesses — it costs more to acquire new customers than to retain existing ones.

1. Measuring Customer Loyalty
 Understand your current customer loyalty status:
  • Determine your repurchase rate: consumers who continue to buy your products/services.
  • Examine the likelihood that consumers will recommend your business to colleagues, friends and family.
  • Evaluate the number of customers who have purchased other products/services offered by your business.
  • Measure the percentage of customers retained over a given period.
2. Increasing Customer Loyalty
Employ these tried and tested strategies to increase loyalty:
  • Recognize and value regular customers and give them special attention.
  • Reward your customers — two-thirds say they enjoy a customer rewards program.
  • Always provide what the customer expects; respond to negative feedback
  • Go beyond transactional: three-quarters of consumers are more likely to purchase from a business that knows their name, purchase history and makes recommendations based on their preferences.
 3. Sustaining Customer Loyalty
Identify any changes in customer expectations and how they feel about your business:
  • Routine conversations and customer surveys can help pinpoint concerns before they become issues.
  • Take an objective view of your business as experienced by customers.
  • Keep tabs on competitors’ products/services, promotional campaigns, and development programs.
  • Manage the impact competitors may have on your customers.
Customer loyalty is important to all businesses — it costs more to acquire new customers than to retain existing ones.  As you build customer relationships, focus on strategies to increase and sustain loyalty.
Source:  CustomerThermometer, reported by Lindsay Willott

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