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3 Easy Ways to Boost Customer Loyalty

Customer loyalty should be seen as a marketing and business strategy since it is cheaper to retain existing customers rather than acquiring new ones. One way to achieve this is to cultivate customer loyalty. Here are three easy ways to do just that.

Give Rewards Customers Will Appreciate

If you want to boost customer loyalty, given them rewards they value. Don’t give someone T-shirts if there’s the potential of them not fitting, or cheap merchandise they will have no use for; instead, give them rewards they’ll appreciate, such as $10 or 10% off their next order above a certain amount. The value of the coupon is enough to feel like a reward while its “price floor” encourages them to spend significant money with you. Contrast this with a coupon for 10% off, and someone buys a $2 item with it. The 20 cents isn’t worth much to the customer, but the business loses money when you factor in the labor costs to create and process the coupon.

If you’re collecting the right types of data, you can give customers deals on items they frequently buy. The personalization makes them feel like you care, while giving a reward they’ll use increases their loyalty. A company like HelloWorld can help you set up a loyalty program that easily yields a return on their investments; therefore, making a return on your investment too.

Reward Engagement

Reward people for following you on social media with deals or coupon codes. Thank those who praise you on social media and share their content about how much they like your company. This is a win-win situation for everyone since it boosts the loyalty of your biggest fans while resulting in more word-of-mouth marketing by anyone who sees it. And, you’ll likely see more free user generated content about the company when you share someone’s excellent review of your business or “how I use the product” video. Another strategy is the “refer a friend” reward, giving your customer a discount or free item if they refer a friend who becomes a customer.

Don’t Make Customers Jump through Hoops to Get a Reward

Do you want to implement a customer loyalty program that actually improves loyalty? Don’t implement a customer loyalty program that makes people wonder if the effort is worth the benefit.

For example, Scott Adams of Dilbert fame did a video in July 2017 condemning what he called disloyalty programs. It discussed loyalty programs that rely on a card to receive the reward, programs that demand entry of a phone number or email address to receive the benefits at the expense of endless advertisement, and multi-step processes to claim any rewards that become ever more convoluted over time.

To claim the benefits of gas discounts required a multi-step process of scanning cards, entering codes, swiping cards, choosing to use the discount and then actually pumping gas. The gas discount from Safeway was so cumbersome to utilize that many simply don’t use it. Now the reward for loyalty isn’t a reward and risks frustrating consumers to the point of abandonment. And remember – they can go somewhere else where the reward program feels like a reward.

Another variation of this mistake is requiring constant data collection in the form of surveys when people try to buy items or constantly soliciting donations to them because your data says they haven’t made one recently. Every time you bother the customer, you make them feel disrespected or devalued. That is the opposite of the very intent of a loyalty program.

In contrast, any effort to streamline and simplify your process to the benefit of the customer will improve customer loyalty – even without a customer reward program.

If you want to boost customer loyalty, keep these tips in mind.

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