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Attracting customers with a magent into an eCommerce business on a laptop, How to increase customer loyalty and retention.

Customer retention refers to how long your customers will remain as one.

Customer loyalty, on the other hand, measures the devotion a customer has for a brand.

These terms make one thing clear: you must find a way to sustain and improve your customer loyalty and retention. 

Think about it: the more customers you retain, the less you spend on acquiring new customers. Thus, the higher your revenue will be!

Developing strategies for both is what powers high-performing and profitable businesses that we’ve helped over the years. So, if you need help regarding this, below are five of the most effective methods for keeping satisfied customers loyal for long.

  1. Set Up a Customer Loyalty Program

If you want customers to keep coming back for more, you must set up a loyalty program they can join. What it does is offer them benefits whenever they make specific purchases on your site or shop. 

For example, if an existing customer buys one product, they’ll get points from their purchase to pay for other products. The more they buy, the more points they accumulate to spend on products from your brand at no added cost!

For this very reason, more than 80% of customers are “more likely” to shop more in stores with loyalty programs.

5 Methods to Build Customer Loyalty and Retention - RomainBerg

Source: CandyBar Blog

When setting up this program, make sure to have a deep understanding of your current customers. You must know what products they’ve purchased, how much they spend, and their level of satisfaction with your brand. You can collect this data by running a survey with your customers via email.

Using the gathered information, you should be able to build your customer persona for this campaign. That will help you to set goals, measure the results, and set a budget to prime your program for success.

  2. Implement Feedback Loop to Improve Customer Retention

Your customers are the lifeblood of your business. Their purchases are important, but their opinions about your brand can help push your business to new horizons.

Therefore, setting up a customer feedback loop is key to measuring customer loyalty and retention. 

Learn what existing customers think about your business and put their feedback into action to increase customer retention rate.

You must run a survey to get feedback from customers about a particular aspect of your business. Below are questions you can ask them in your survey to measure customer loyalty and retention:

  • Net Promoter Score (NPS) – Measures how likely they are to recommend your business to others on a scale of 1-10 (10 being the highest).
  • Customer Satisfaction Score (CSAT) – Measures the level of satisfaction a customer has (from “Poor” to “Excellent”) after an interaction with your service. 
  • Customer Effort Score (CES) – Measures the level of effort required from customers to solve their problems.

From here, you must organize the responses into their rightful buckets to help you provide the appropriate answers for each.

Finally, you must respond to them promptly. Whether it’s a short “thank you” email or a long response providing a solution, the goal is to acknowledge them. 

Fostering a personal connection between your brand and customers improves retention because the customer feedback loop improves customer loyalty.

  3. Provide Excellent Customer Support

A customer support center with many customer service representatives working at one. Good customer service is a great way to increase customer loyalty and retention.

Your customers are bound to have questions or concerns about your products. They’ll reach out to your support team for answers.

Now, how your customer support staff responds to their queries is vital to your ability to create customer loyalty.

The same products from different brands tend to become the same over time. But what ultimately separates them from the pack is good customer service to keep customers happy.

You can achieve this by doing the following:

  • Set up channels where customers can easily reach out to you – Install a live chat or chatbot on your site, which some customers prefer when it comes to reaching out to businesses. Also, set up a ticketing system in case your staff is unavailable. If possible, direct your customers to your knowledge base to have documentation to any of their questions.
  • Create a knowledge base – Document solutions to the most common problems and questions customers face and ask. You can set up your chat widget to direct them to the most relevant article from the KB. 
  • Have a pleasant attitude – Communicating to customers with a positive attitude results in a positive customer experience. This is easier said than done since most communication between customers and brands is done online. And without seeing one’s face, it’s easy for customers to misconstrue any message sent to them with the incorrect tone. You can make your attitude more palpable by using emojis and pleasantries in your messages.

  4. Send Product Recommendation Emails

If they purchased products from your store, you should suggest to them similar or adjacent products you’re selling as well.

The fact that they keep buying from your site means that they’re interested in buying more from you. It’s just that, sometimes, they don’t know which products they need or want.

With product recommendation emails, you take the guesswork away from them and suggest items related to their previous purchases.

Implementing this correctly will help you increase your customer lifetime value by encouraging repeat purchases.

To do this, you must set up a rule in your email marketing software like MailChimp.

For example, you can send out a welcome email with product suggestions to new, inactive, or lost customers. The user personal data you previously collected will facilitate this.

Also, instead of product recommendations, you could share bestsellers and new arrivals with your most loyal customers. Give them discount codes to use on these items as well to reward them for being repeat customers.

  5. Ask for Customer Reviews 

As mentioned, businesses tend to spend a fortune on launching marketing campaigns to bring new customers on board.

A more affordable way to acquire new customers is to request reviews about your service from your current ones.

You can ask them to leave online reviews on G2, Capterra, Yellow Pages, Yelp – whichever platform applies to you.

Customers expect reviews to be impartial and objective. That’s why they read product reviews before deciding whether to buy or not based on what they say.

So, if they see lots of 5-star reviews about your business, expect more future customers to come your way!

Ideally, you want to reach out to customers who have had a seamless customer experience with your brand. They are most likely to leave positive reviews about your business on their platforms.

5 Methods to Build Customer Loyalty and Retention - RomainBerg Source: Really Good Emails
Make it worth your customers’ time to leave positive reviews by rewarding them with discount codes. They can use the reward to continue purchasing from your store.

We’ll Help Boost Your Customer Loyalty and Retention

By following the methods above, you encourage repeat and increased business from your best customers.

At the same time, you reignite customer segments you weren’t able to get in touch with before.

Implementing a customer loyalty and retention strategy allows you to get back into the good graces of lost customers.

This way, you can keep making a good impression on customers, increase retention rate, and build lasting loyalty among them.

If you have questions about rolling out a customer loyalty and retention strategy for your business, let us know. We’ll get back to you at the soonest possible time.


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