Instead, show customers how much you value them by offering them benefits so good that they would be foolish not to join. If it cost the same to replace customers lost through leakage, churn would not be such a problem. Even if the core product is excellent, poor service can jeopardise customer loyalty more quickly than other elements. Between social media, customer review sites, forums and so on, the slightest slip-up can be recorded and uploaded for the world to see.
Consequently, increasing CLV positively affects customer retention, as it means that the frequency and value of purchases increases over time. Conversely, build customer loyalty by providing them with incredible benefits related to your business and your product or service with every purchase. Some companies prefer this metric to NPS because it measures the actual experience rather than the emotional delight of the customer. One of the things brands can focus on to build customer loyalty is meeting and even exceeding customer expectations.
Whether or not you have a loyalty programme that encourages your customers to return and do more business with you, the above statistics clearly show the importance and impact of a successful customer loyalty programme. It includes engaged employees (whose role in customer loyalty is greatly underestimated) and a dedicated customer service team. Frequent customers earn points that translate into some kind of reward, such as a discount code, gift or other special offer. Customer loyalty also fosters a strong sense of trust between the brand and customers when they decide to return frequently to your company, as the value they get from the relationship outweighs the potential benefits they would get from one of your competitors.
With email marketing, brands can boost relationships with their existing customers and, in turn, improve loyalty. Finally, always thank customers for their feedback and use it to identify problem areas within the company. Using the metrics below will help to identify how loyal customers are and where further work is needed. While it is obvious that returning customers who spend more money are good for business, there are other, more subtle benefits to loyal customers.
