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Editorial

5 Ways to Increase Customer Loyalty

4 minute read
Joanna Clark-Simpson avatar
By
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Many brands are prioritizing customer experience to help differentiate organizations and increase customer loyalty.

The Gist

  • Use data wisely. Consumer-facing businesses collate a large amount of data which can be leveraged to support a deeper understanding of the customer experience. 

  • Engagement matters. Fostering closer ties with customers -– present and future — through clear, helpful communication helps build stronger customer relationships. 

  • Personalization counts. Today’s shoppers want to feel like businesses are using their data to individualize their buying experience to suit their needs.  

Customer data has been a driving force in brand strategy, and there’s no doubt that analyzing key information around customer behavior delivers vital insights that enable brands to reliably predict user patterns. It allows businesses to dig into consumer habits and understand their purchase motivations and inclinations towards certain products.

In a PwC Customer Loyalty study, 55% of respondents said they would stop buying from a company if they had several bad experiences, while 73% believe CX influences their purchase decisions. Evaluating these types of consumer experiences can be a lifeline for many brands as they learn how and why customers make the decisions they do.

Customer Behavior Links With Brand Reputation

Customer behavior is constantly shifting. Today’s consumers are making different choices than they were just a few years ago, which is why brands need to analyze these decisions to reduce friction in the buyer journey and nurture stronger customer relationships. 

In fact, customer loyalty is directly correlated to brands that build a consistent, attractive and reliable reputation. Customers like to know they can trust a company to deliver the products they want at a reasonable price point. 

Those consumer-facing businesses that want to amplify their brand reputation often start with a reputation audit to find out how potential customers perceive them online. The results of this audit can help create a proactive CX strategy that enhances customer experience. It may also help them understand what creates customer loyalty so they can strengthen relationships over the long term.

Overall, brands in 2023 that want to better shape shopper demand and boost engagement will certainly be looking toward CX strategies they can implement. 

Related Article: Mastering Brand Reputation Management in the Social Media Age

How CX Helps Lock In Customer Loyalty

Customer satisfaction is the key to many brand success stories. If you can reduce irritations across the customer journey, resolve issues quickly and construct lasting customer relationships, these skills will strengthen your customer-centric business.

Let’s look at proven CX strategies that brands are maximizing right now to improve customer service. With customer satisfaction at their center, these tools can transform the way businesses interact with customers, boosting in-person and online communications:

Creating Emotional Engagement 

As humans, we know that emotionally engaging with a person or organization allows us to connect and stay open to what they say and do. This is equally true of consumers and brands, so adopting a human-focused model helps brands rediscover who their customers are, their likes, dislikes and preferences when it comes to product purchases.

According to CSG’s 2023 State of the Customer Experience Report, 36% of consumers would rather wait on hold and speak to a human agent for issue resolution rather than self-serve with an AI-powered virtual assistant. 

Consumer expectations are now more closely interwoven with how they view and emotionally respond to a brand. If a customer feels heard and has their issues quickly resolved with few communication delays, this positive experience increases emotional engagement and boosts brand loyalty. 

Related Article: Create a Positive Emotional Connection for a Better Customer Experience

Prioritizing Personalization

Personalization is a familiar term for most customer service teams, but some may not know how it works or what it can do to help enhance customer experience. Brands collect a whole range of customer data that may be an untapped goldmine of customer discovery. In fact, customer research reveals 88% of online shoppers are more likely to continue using an online retail site that offers a more personalized experience. 

Two ways that brands can convert that interest into loyalty and enrich the customer experience:

  • Omnichannel offerings that expand confidence for shoppers during uncertain economic times
  • Personalized product searches that offer the best shopping experience, which leads to increased sales

Research has demonstrated that shoppers now expect brands to recognize them as individuals and use their data to personalize experiences based on their interests. Evidence from customer feedback on social media suggests that the majority of consumers now expect a brand’s messaging to be tailored to their needs.

Customers develop greater emotional bonds with a brand when they create valuable post-purchase touchpoints such as checking in to see how a customer is feeling after using the product or delivering discounts/second-buy coupons to foster a long-term brand relationship. 

Leveraging Customer Feedback

Social media is the most direct way consumers can now share their views about brands and specific products or services. Consumer-facing businesses know the value of dynamic conversations online with their customers to increase brand loyalty and enhance customer satisfaction.

Businesses who want to make the most of their customer communications can ask for positive reviews and share helpful feedback examples, how-to guides and discount offers to promote their customers’ positive experiences with their company.

Incentivizing customers to interact, share and communicate can only pave the way for optimistic expansion in customer experience. 

Exceeding Customer Expectations

Post-pandemic, customers need a diverse collection of dynamic brand experiences to connect them to a product or business — in addition to helping them in challenging economic times. 

In order to meet and exceed customer expectations, consumer-facing businesses must activate a suite of smart strategies to ensure they have a correct picture reflecting precise customer expectations. Brands can:

  • Stay ahead of trends by monitoring strategies used by competitors and those shared by customers online. 

  • Leverage customer feedback with voice-of-customer surveys to find out exactly what customers like and how you can enhance their experiences. 

  • Deliver CX training for customer service teams so agents know how to listen and respond to customer issues.

Learning Opportunities

Related Article: What Defines World-Class Customer Service Now and How to Get There 

Data And Customer Experience In Harmony

There is growing evidence supporting the idea that data drilling into customer behavior, experience and loyalty is imperative to developing proactive strategies that improve customer satisfaction levels.

But now, data alone isn’t enough. We need to listen closely to how customers feel about brand interactions and how they respond to products. Then, we can use this information to change practices and increasing brand loyalty that lasts.

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About the Author
Joanna Clark-Simpson

Since her student years, Joanna has been interested in digital marketing and journalism. She has worked in the marketing area for over 16 years. Connect with Joanna Clark-Simpson:

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