Customer loyalty is an emotional bond with your brand. You can foster loyalty by building long-term relationships based on consistent, positive brand experiences. It’s less expensive to retain customers than to acquire new ones. So the smart move is to invest in loyalty programs and relationship marketing.
Loyal customers respond
Statistics indicate that, compared to non-members, members of loyalty programs who respond to email had:
- 40% higher open rates
- 22% higher click rates
- 29% higher transaction rates
- 11% more revenue generated per email
Calculate customer lifetime value (CLV)
How much is a customer worth over a period of time? This figure lets you determine how much you can spend to acquire and retain a customer and remain profitable. Loyal customers spend more money and return more often, so it’s worth investing in building the relationship.
(average value of sale) X (number of repeat transaction) X (average retention time in months or years for typical customer)
Create a good first impression
It’s essential to deliver a positive brand image from the start, when customer attention is highest. 74% of consumers expect to receive a welcome email when they sign up, and 53% of marketers agree welcome messages help achieve business goals, but only 39% of brands send one.
If wasted, this potential can never be recovered.
Anticipate audience expectations by tracking their online behavior and responding immediately and accurately. You can also invite them to engage in dialogue. More than 64% of U.S. and U.K. Internet users want marketers to demonstrate knowledge of the types of products, services and offers they like.
Listen when customers tell you what they want
Segmented email campaigns produce 30% more opens and 50% more clicks than undifferentiated messages. So the effort is worthwhile.
Let customers get to know you
Use various communication channels to present different aspects of your brand and offer. 59% of respondents are more likely to trust brands that integrate social media. (Mass Relevance: The Social Hunger: Why Your Audience Feasts on Social Integration. 2012)
Reward your customers
A sense of exclusivity is one of the major motivators to stick with a brand. 7 in 10 people say they have used a coupon or discount from a marketing email. (Blue Kangaroo Study, 2012) Your customers need to feel that, the longer they stay, the more they can benefit.
Bring excitement and delight
Your brand reputation depends on the emotion it inspires. 63% of consumers agree that social experiences make them more interested in a brand’s product. (Mass Relevance The Social Hunger: Why Your Audience Feasts on Social Integration, 2012)
Involve your customers in interesting events to help create a genuine bond with your brand.