Photo by Gustavo Fring
“To build genuine loyalty, retailers need to break with old-school tactics. They must earn consumer trust, preference, and loyalty as a strategic initiative that goes beyond points, coupons, discounts, and mass-blasted emails,” – Entrepreneur.com
A close survey of human civilization indicates that business and commerce evolution features as an important achievement of the human race. These activities are transactional and have helped human beings to share and distribute resources. In modern times, the domains of business and commerce have attained mass market status. Global trade practices and business frameworks have imparted finesse and sophistication to commercial activities. Regulators, multilateral trade negotiations, the paradigm of demand and supply, and free market forces hold sway in equal measure.
In addition, the business cycle operates in modern commercial landscapes. The end of the calendar year signifies one such cycle. Consumers and customers race to buy various products and services. Brands and businesses must work to drive a focus on customer loyalty in the ensuing New Year. The customer service team can use tools to learn and understand what works for their customers. With a tool like interactive decision trees, it can help them improve customer satisfaction by creating quizzes and surveys.
Let’s examine some of the premises and techniques below.
What is Customer Loyalty
‘Customer loyalty’ may mean different things depending on the point of view. The predominant and most common interpretation of this term points to a certain trend in consumer behavior. The customers consistently direct their money to a particular market entity. This behavior is driven by a belief that the said entity is best suited to fulfill customer demands and requirements. For instance, a certain segment of customers may favor a particular telecom services provider.
This segment believes that the provider offers the best value for their money. Thus, they wholeheartedly patronize the services of said provider. In response, the business enterprise focuses on customer loyalty by offering its patrons the best deals in the market. A steady, quality proposition can drive the focus on customer loyalty, as a steadfast commitment to paying attention to the voice of the customer. These actions empower telecom service providers to boost the number of subscribers while significantly lifting their profit margins.
Loyal customers drive long-term results
Customer loyalty can prove to be a force multiplier in the long term. Enthusiastic customers and dedicated fans of a business enterprise can provide useful word-of-mouth marketing to a brand or business. These actions can significantly boost bottom lines and should motivate commercial enterprises to drive a sharp focus on customer loyalty. Loyal customers provide steady revenue streams to a business while, evangelizing a brand in their social and professional circles. This significant aspect of consumer behavior can help businesses gain much ground during the next annual cycle or the New Year. That said, brands and businesses should work to win the loyalty of their customers to gain privileged access to their business dollars.
To determine factors that resonate with customers
Internet technologies have expanded their reach in recent years. Large sections of the planet have gained access to the Internet and its information highways. In line with this, commercial operators should use Internet-driven data and statistics to determine factors that resonate with their customers. This technique can sharpen a business’s focus on customer loyalty. For instance, an online marketing organization can choose to analyze its performance based on the data emanating from its business operations.
The organization can assess the number of digital footfalls at its online properties and survey electronic information on customer conversions. These exercises enable the organization to assess consumer trends and subsequently, tweak or adjust product and service offerings. This instance of commercial behavior indicates that focusing on customer loyalty can prove very useful in modern competitive markets.
Pay attention to customer segments
Certain key customer segments represent a crucial aspect of business success. Younger generations of consumers potentially offer millions of dollars in sales to every business enterprise. These young adults may spend their time browsing through digital businesses and reviewing peer comments before buying a product or service. In light of this, commercial enterprises should focus on customer loyalty in a bid to lock in dollars offered by satisfied customers. Businesses that operate in the online domain should consider the creation of brick-and-mortar stores in the New Year. This initiative bears the promise of exposing a certain brand to a high number of business prospects and potential customers. For a business that is actively working to gain customer loyalty, these initiatives will likely offer a significant payoff in the future.
Customer convenience
The growing tempo of commercial competition creates a watertight case in favor of driving a focus on customer loyalty. Multiple brands and businesses enter every commercial domain during the annual cycle. Therefore, customer loyalty can ensure that fewer customers switch to a competing business enterprise.
For instance, a business may implement a mobile-first policy with a view to enhancing customer convenience and winning their loyalty. This initiative ensures that a business gains a technology-driven head start in a competitive market. The act of locking in customers’ hearts and minds guarantees a larger market share for said business. The business can expand this market during the subsequent twelve-month cycle, thereby winning a dominant market position for itself.
Loyal customers help businesses gain new customers
Customer loyalty is critical in the uncertain business environments typical of modern times. This attribute can guarantee a certain revenue stream for a business that is navigating a downturn in business cycles. For instance, a herbal products and flowers business depends on its regular and loyal customers to weather a negative market environment. Such times coincide with a contraction in general economic activities. Profits face erosion and revenues may slip into the ‘red’. In such a situation, a focus on customer loyalty is likely to act as an insurance policy for businesses. Further, loyal customers can offer suggestions to the business owner. They can help the business achieve new customers and attain greater business efficiency.
Boost competitive advantage
Intelligent business enterprises should work to create a sharp focus on customer loyalty to boost competitive advantages. This technique is priceless in markets where multiple products compete for similar price points. For instance, a manufacturer of branded sporting footwear should work to gain the loyalty of customers through superior brand value. This strategy is driven by the fact that customers are exposed to different brands and new products when shopping for athletic footwear. Their loyalty to a brand should ensure predictable purchase behavior and reduce any distortions in brand preference. In light of this, we note that customer loyalty can boost competitive advantage for a brand or business.
Final Thoughts
We have examined some of the techniques that propel businesses to cultivate brand loyalty during the year-end economic cycle. Every brand manager and business operator should realize that building and sustaining a customer’s loyalty is a long-term project. It requires investments in terms of time and effort. The task is made onerous by multiple brands that operate in modern markets. A loyal customer is a business asset. Therefore, brands and businesses must work to multiply the number of such assets. Once a critical mass is achieved, a business gains the confidence and momentum to surpass its biggest rivals and attain ambitious commercial targets.
