Customer loyalty is the act of consistently choosing a company's products and services over those of competitors. When a customer is loyal to a company, they are not easily swayed by price or availability. Customers who trust the companies they do business with will be more likely to buy again in the future. You want your customer to earn points and get their money's worth, so sending friendly reminders from time to time will help keep them on your radar.
It is your loyal customers that perpetuate your business and maintain profits over a long period of time. Customer loyalty programmes have had a huge impact on the market, with 83 per cent of customers admitting that they are more likely to do business with a company that offers purchase incentives. According to Microsoft, almost everyone considers customer service to be important in choosing brand loyalty. These definitions may seem synonymous, however, brand loyalty measures the likelihood that repeat customers who have regularly purchased products from your company will try other products from your company before turning to your competitors.
You can't afford to overlook the importance of customer loyalty, but creating your own loyalty programme could be a great way to recognise and reward it. According to the infographic, 69 per cent of customers say that loyalty programmes influence where they shop and the reasons for joining loyalty programmes: 57.4 per cent to save money and 37.5 per cent to receive rewards, respectively. Loyalty occurs when a customer returns to buy from your brand consistently and over a long period of time. Satisfied customers are likely to tell their friends and family about your business and your products, essentially advertising and spreading goodwill on your behalf.
Through such a programme, you can incentivise customers to continually buy your products by offering them future discounts or even free items. Keep your customers happy by encouraging them to return through incentives such as loyalty programme rewards, and you will be contributing to the success of your business rather than your competitor across the street. Customers can order ahead, skip the lines, make customised drinks, redeem stars for retail items and earn bonus points on Starbucks special days. Improving your customers' experience not only improves their loyalty, but makes them more likely to recommend you as well.
A less obvious reason why customer loyalty is important to your business is that not only do these customers come back to buy more products, but they are much more likely to spend more money per transaction than new customers. It can also extend to occasional repeat customers: for example, a customer who always visits a particular ice cream shop when he visits his mother every month. But it can be costly and time-consuming because you have to convince that customer to buy your products.