Loyal customers are developed by providing a customer consistent value, a low friction experience and establishing an ongoing trust that develops over time. Creating loyalty to customers who make a one-time purchase to those that will become long term loyal customers involves more than offering discount pricing or sending multiple emails. More importantly, loyalty is developed by creating an environment of continuous positive experiences for the customer as they move from the point of sale to future purchases. The customer’s first purchase is the beginning of this process, which continues through delivery, set up, problem solving and if the customer feels the brand understands them and provides them with support. Continually meeting the customer’s expectations creates loyalty and continually making the customer’s life easier builds loyalty. Organizations developing a loyalty strategy focus on retention drivers that can be measured and improved.
1. Make the First Post Purchase Experience Positive
The customer’s first few days after making a purchase determine how they will perceive your organization in the long run. In addition to poor quality products, customers may lose confidence in a company quickly due to a poorly planned delivery process, complicated setup processes and/or slow responses to inquiries regarding support. To eliminate confusion and build trust, companies should provide clear updates, provide easy-to-follow instructions, and allow customers easy access to assistance with any questions or concerns they may have. Companies should avoid forcing customers to search for answers to their basic questions.
Developing a well-designed onboarding process can minimize the risk of buyer’s remorse. A good onboarding process should explain to the customer how to maximize the potential of the product they purchased, not just how to use all the features of the product.
2. Develop Loyalty Through Consistent Service Standards
Customers continue to leave companies because the service they received felt random and unpredictable. Developing a predictable service model helps to increase customer loyalty. When customers know what to expect each time they interact with a company, the service becomes part of the brand identity and increases loyalty.
Companies should develop service standards that are clearly defined and consistently followed. These standards should include (but are not limited to): Response Time, Refund Policies, Escalation Procedures and Communication Tone.
When companies make mistakes, quick recovery is key to increasing customer loyalty. Quickly acknowledging a mistake, explaining why it occurred, and resolving it fairly, can create greater customer loyalty than a flawless experience that seemed remote.
3. Use Personalization That Is Relevant to Customer Behavior
Customer behavior-based personalization works when it is based on what customers have done, rather than on what employees think they might want. Signals of customer behavior (such as repeat purchases, customer browsing history, and the type of technical support they require) show what the customer wants or needs next.
Personalization should not only be perceived as being relevant but also as being helpful to the customer. Providing customers with relevant recommendations such as recommended accessories, tips for using the product, and reminders about the maintenance of the product creates value for the customer without applying pressure.
Too many communications to customers decreases loyalty. Customers should receive fewer, better communications that are specific to where they are in the sales cycle and their needs at that time.
4. Create Reasons For Customers To Return That Are Not Related To Pricing
Price-based retention strategies can decrease long-term profit margins and condition customers to wait until prices are reduced before returning. Long-term loyalty is created by providing benefits that enhance the customer experience.
Benefits provided to customers could include; faster response to customer service inquiries, easier re-ordering capabilities, educational content related to the product, or access to a community related to the product. The best loyalty programs recognize and reward the customer for consistency and trust, not just for the amount of money they spend.
In addition, organizations should also track loyalty drivers such as repeat rate, time between purchases, reasons for churning, and referrals. Tracking these metrics ensures that the loyalty strategy remains focused on results.
Summary
Creating long term loyal customers from one-time buyers is dependent upon successful post-purchase onboarding, consistent service standards, personalized communications that are helpful to the customer, and creating value for the customer that exceeds price. Building customer loyalty is a systematic approach of building trust with the customer through repeated positive interactions, not a one-time campaign. When organizations lower barriers for customers and handle complaints fairly and quickly, customers will return more frequently and refer the brand to others more confidently. That predictability is what converts the first purchase into a lifelong relationship.
By Business Scoops.