For companies averaging $1 million in revenue, 81% of this goes on search engine optimisation and pay-per-click advertising alone.
That’s a big slice of the pie, just to attract new customers. But what about keeping these customers? Considering the high customer acquisition cost from marketing, improving customer loyalty could be a significant boost for every ecommerce businesses in such a competitive market.
Read on as we look at 3 ways to boost customer loyalty for your brand.
1. Engage with your customers
Customers are more likely to feel loyal to a brand if they feel some sort of connection. To achieve this, its essential to give your brand a voice. Whether it’s blogging, an active presence on social media or just connecting through email marketing, customers who are engaged have been found to provide an extra 23% in terms of revenue and relationship growth.
2. Introduce loyalty schemes
Arguably the most powerful tool for loyalty are aptly named loyalty schemes. Research suggests that 68% of millennial consumers won’t stay loyal to a brand without that kind of scheme. So, how do they work?
Loyalty schemes are simply a way of rewarding customers for repeat purchases – whether it’s one a month or meeting a minimum spend each year. Here are some ideas of rewards:
- Discount codes
- Free delivery
- Entry into competitions and giveaways
- Free added-extras on orders
It’s not necessarily about loyalty in terms of purchases either. Many brands also reward customers for things like reviewing products, following them on social media and reading or sharing blog posts. Be sure to make this clear, though. One of the most common reasons loyalty schemes fail is because their rewards are insufficient or unclear.
3. Stay honest
Rewards may be useful for incentivising loyalty, but they’re not something you can rely upon alone. A 2016 study found that 94% of consumers are likely to be loyal to businesses that offer complete transparency. How? Be clear on pricing, shipping and ingredients or materials used. That way, your customers don’t feel like they’re being exploited by extra costs, delayed shipping or unclear contents of a product.
It’s also worth considering honesty in the way you deal with complaints. Understandably, a lot of customers switch brands when something goes wrong. This is largely to do with how complaints are dealt with:
- 92% of Brits won’t return to a brand if a complaint is dealt with poorly
- In contrast 75% are encouraged to make a repeat purchase if a complaint is dealt with effectively, and 52% think more highly of businesses that handles complaints well
With a few small changes, you’ll soon find your customers connecting with your brand, and staying loyal long into the future.
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