3 Proven Ways to Increase Customer Loyalty

How many times have you heard, “It’s cheaper to keep an existing customer than to acquire a new one.”

The data shows that they’re correct.

As a brand owner, it’s in your best interest to now only acquire customers, but to keep them around for as long as possible.

Customer loyalty makes an impact to what you value the most: your bottom line. Increasing customer retention by only 5% increases profits by 25-95%! (Bain & Co.)

Customer loyalty increases purchase order value and purchase frequency as repeat customers spend 67% more than new ones. (BIA/Kelsey)

Once a brand loses a customer, 68% of the customers never purchase from them ever again. (Accenture).

Luckily there are proven ways brands can engage with their audiences to communicate and deliver value in more sophisticated ways to take advantage of what customer loyalty brings.

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1. CREATE RELEVANT CONTENT

Don’t just create content for the sake of creating content. Create relevant and engaging pieces of content by focusing in on where your target customer hangs around.

Are you customers mainly entertaining themselves with video? Are you customers mainly searching for blogs on how-tos? Are you customers mainly participating in live webinars?

Cater to the customer and meet them where THEY are.

Also another piece to consider is to also create content that is the most comfortable for you and your brand.

If you’re not great on video, maybe videos or live webinars don’t make sense.

However, if you’re great at emails and photo, consider doubling down on creating more Instagram content and sending out more emails to your audience.

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2. USE A CRM

If you’re running ads, have set up email campaigns, or have a traditional CRM, you’re collecting valuable first-party data, and if you’re not using it, you’re leaving piles of cash on the table.

By segmenting your customers by their actions, purchases, engagements, demographics, etc. you are curating highly targeted audiences that engage and respond better to content.

The key then is to create content that is both relevant and personalized.

Run specific ads to audiences that have engaged with a particular interest. Email audiences who have bought a particular product. Send informational content to audiences that have engaged with a particular product.

The possibilities are endless.

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3. DEVELOP AN EMOTIONAL CONNECTION

How can you position your product in a way that increases the emotional connection with your target audience? What about your customer service? What about your branding?

These are all things many brand owners neglect when thinking about customer retention strategy.

Branding is a great way to build an emotional connection with your customers. What’s the first thing you think of when you hear “Cheetos” or “Frosted Flakes?” Did you think of Chester Cheetah or Tony the Tiger?

Personifying your brand and giving it real life values, attitudes, and characteristics, in this case by creating avatars or mascots, is a way for your target customers to feel more connected to your products and brands. They see the similarities in their values and aspirations with your brand.

Which in turn increases customer loyalty.