How to develop an effective customer loyalty strategy?
Posted: Sat Dec 28, 2024 9:12 am
You have probably already experienced this situation. You are a customer of an online store, you are satisfied, but you realize that new buyers are entitled to advantages and not you, even though you are a loyal customer.
Besides, a competing e-commerce site is offering a 10% discount to its new customers. What do you do? Admit that you are tempted to shop elsewhere, since loyalty doesn't bring anything...
It's a fact: the Internet makes buyers particularly volatile. Comparison is easy and the offer is plethora. Having a loyalty strategy is therefore essential to ensure your long-term growth. This is all the more so since acquiring a new customer costs around seven times more than retaining an existing one.
Convinced? We explain how to develop an effective customer loyalty strategy, with 5 concrete tools to use.
Why develop a customer loyalty strategy?
The conversion funnel doesn’t end when you’ve successfully converted your korea telegram prospect into a customer. The key to stabilizing your revenue in the long term is to successfully retain your existing customers so that they become brand ambassadors .
1 Customer loyalty
H&M offers members of its loyalty program exclusive benefits, such as split payment.
Customer retention costs less than acquisition
Many businesses focus on acquisition, to the detriment of retention. However, retention costs less (up to seven times less). You have less investment to make to convince your customers since they are already aware of your marketing messages. Therefore, retention is more profitable for your business as soon as there is conversion.
An effective customer loyalty strategy benefits your brand image
A loyal customer is a priori a customer satisfied with your products or services. In fact, he will tend to promote your company and value your expertise to those around him. The "snowball" effect can even be increased tenfold on social networks. This word-of-mouth allows you to attract new customers at a lower cost, or even to retain other customers: it is therefore a growth lever that should not be overlooked.
That said, loyalty is not based exclusively on customer satisfaction. Your customer must above all be committed to your brand . For this, it is the customer experience that takes precedence. The emotions of your buyers play a determining role in the relationship they will maintain with you. Indeed, loyalty aims to establish a lasting relationship of trust between your brand and your customers. They must be able to identify with your values, your philosophy, and the community that you bring together. To do this, you can, for example, rely on emotional marketing and practices such as storytelling .
Customer loyalty supports your long-term growth
A customer loyalty strategy is a long-term performance lever. It is a tool for your growth that relies on customer satisfaction and the creation of a lasting relationship of trust.
It has been proven that companies that benefit from a high retention rate are more resilient to periods of crisis. It is therefore one of the key performance indicators (KPIs) to absolutely monitor , especially if you manage an e-commerce site. Indeed, with a loyal customer base, you ensure, on the one hand, the stability of your turnover. On the other hand, you can more easily plan your commercial, marketing, financial actions, etc. It is an element that proves to be strategic in validating the profitability of your investments in the medium and long term.
5 tools to support your customer loyalty strategy
Social networks
You will have understood it by now: one of the keys to retaining your customers is to create a lasting relationship of trust with them. For this, social networks are the communication channels to favor , because they strengthen the proximity between a brand and its audience.
You must therefore develop your content strategy by thinking not only about acquisition, but also about loyalty. One can also feed the other. For example, you can use your social networks to promote the benefits reserved for your loyal customers. The goal is then to make your prospects or any new customers want to be part of this privileged community . Keep in mind that the feeling of belonging is what feeds the engagement of your audience towards your brand on social networks.
Loyalty program
The loyalty program is a widespread practice, but oh so effective. If you create a Shopify online store, you can easily set up a loyalty program by choosing one of the applications from the App Store (if in doubt, you can ask a Shopify expert in Reunion to assist you).
Loyalty programs are generally based on a points system . These, having reached a certain threshold, are transformed into vouchers. Some companies even offer statuses based on the number of points collected: the more the customer buys, the more exclusive benefits they gain. This is similar to what airlines offer, for example.
2 Customer loyalty
Sephora integrates a loyalty program based on a points system. Thresholds allow access to different statuses ("White", "Black" and "Gold"), which grant increasingly numerous and more exclusive advantages.
A loyalty program can also give the right to systematic discounts on certain products. This is the case, for example, at Fnac: cardholders get a 5% discount on certain categories of items (books, electronics, etc.)
Besides, a competing e-commerce site is offering a 10% discount to its new customers. What do you do? Admit that you are tempted to shop elsewhere, since loyalty doesn't bring anything...
It's a fact: the Internet makes buyers particularly volatile. Comparison is easy and the offer is plethora. Having a loyalty strategy is therefore essential to ensure your long-term growth. This is all the more so since acquiring a new customer costs around seven times more than retaining an existing one.
Convinced? We explain how to develop an effective customer loyalty strategy, with 5 concrete tools to use.
Why develop a customer loyalty strategy?
The conversion funnel doesn’t end when you’ve successfully converted your korea telegram prospect into a customer. The key to stabilizing your revenue in the long term is to successfully retain your existing customers so that they become brand ambassadors .
1 Customer loyalty
H&M offers members of its loyalty program exclusive benefits, such as split payment.
Customer retention costs less than acquisition
Many businesses focus on acquisition, to the detriment of retention. However, retention costs less (up to seven times less). You have less investment to make to convince your customers since they are already aware of your marketing messages. Therefore, retention is more profitable for your business as soon as there is conversion.
An effective customer loyalty strategy benefits your brand image
A loyal customer is a priori a customer satisfied with your products or services. In fact, he will tend to promote your company and value your expertise to those around him. The "snowball" effect can even be increased tenfold on social networks. This word-of-mouth allows you to attract new customers at a lower cost, or even to retain other customers: it is therefore a growth lever that should not be overlooked.
That said, loyalty is not based exclusively on customer satisfaction. Your customer must above all be committed to your brand . For this, it is the customer experience that takes precedence. The emotions of your buyers play a determining role in the relationship they will maintain with you. Indeed, loyalty aims to establish a lasting relationship of trust between your brand and your customers. They must be able to identify with your values, your philosophy, and the community that you bring together. To do this, you can, for example, rely on emotional marketing and practices such as storytelling .
Customer loyalty supports your long-term growth
A customer loyalty strategy is a long-term performance lever. It is a tool for your growth that relies on customer satisfaction and the creation of a lasting relationship of trust.
It has been proven that companies that benefit from a high retention rate are more resilient to periods of crisis. It is therefore one of the key performance indicators (KPIs) to absolutely monitor , especially if you manage an e-commerce site. Indeed, with a loyal customer base, you ensure, on the one hand, the stability of your turnover. On the other hand, you can more easily plan your commercial, marketing, financial actions, etc. It is an element that proves to be strategic in validating the profitability of your investments in the medium and long term.
5 tools to support your customer loyalty strategy
Social networks
You will have understood it by now: one of the keys to retaining your customers is to create a lasting relationship of trust with them. For this, social networks are the communication channels to favor , because they strengthen the proximity between a brand and its audience.
You must therefore develop your content strategy by thinking not only about acquisition, but also about loyalty. One can also feed the other. For example, you can use your social networks to promote the benefits reserved for your loyal customers. The goal is then to make your prospects or any new customers want to be part of this privileged community . Keep in mind that the feeling of belonging is what feeds the engagement of your audience towards your brand on social networks.
Loyalty program
The loyalty program is a widespread practice, but oh so effective. If you create a Shopify online store, you can easily set up a loyalty program by choosing one of the applications from the App Store (if in doubt, you can ask a Shopify expert in Reunion to assist you).
Loyalty programs are generally based on a points system . These, having reached a certain threshold, are transformed into vouchers. Some companies even offer statuses based on the number of points collected: the more the customer buys, the more exclusive benefits they gain. This is similar to what airlines offer, for example.
2 Customer loyalty
Sephora integrates a loyalty program based on a points system. Thresholds allow access to different statuses ("White", "Black" and "Gold"), which grant increasingly numerous and more exclusive advantages.
A loyalty program can also give the right to systematic discounts on certain products. This is the case, for example, at Fnac: cardholders get a 5% discount on certain categories of items (books, electronics, etc.)