Creating customer loyalty with high retention requires you to define brand value, engage in loyalty programs and pursue lost customers.
What is Customer Loyalty
Customer loyalty describes the decision of a customer to continue purchasing from a particular business, due to the belief that the business offers the best combination of product, customer experience and price within its category. A high customer loyalty will prevent a customer from easily switching to a competitor based on simple factors such as better advertising or a better price.
Maximizing customer loyalty is an important point of focus for every business. Generating strong customer loyalty, and the higher customer retention rates it implies, is much more cost-effective than constantly relying on new acquisitions. Businesses will want to take a few steps to build loyalty and improve customer retention.
The Importance of Brand Value
Building loyalty and high retention rates must involve expressing the value of the brand to customers. This means specifying exactly what the company, products or services are providing that cannot be acquired elsewhere. Customers are less likely to turn to the competition if the benefits of the brand are clearly quantified.
Businesses will want to establish a loyalty program that rewards customers who continue to make purchases. Loyalty programs are very inexpensive to implement but can dramatically increase customer lifetime value. An effective loyalty program will also improve retention by decreasing the value of purchases made through competitors.
Pursuing Lost Customers
It is important to take every step possible to reclaim lost customers. Customers who have not made a purchase in a few months can become the target segment for a promotion designed to draw people back. Customers who abandon an online shopping cart should receive reminders that the items are still available. This will directly increase retention.
Optimove’s Customer Loyalty and Retention Software
Optimove combines predictive customer modeling and advanced multi-channel campaign automation technologies to help businesses maximize customer loyalty and retention. Contact us today – or request a Web demo – to learn how you can use Optimove to convert more customers, increase the spend of existing customers and reduce customer churn.