Everyone wants satisfied customers. But even more important than merely satisfied customers are loyal customers. These customers buy more: 57% have increased order value with brands to which they are loyal. Loyal customers are also more likely to write reviews and become brand evangelists, which is especially valuable when 95% of customers report that they read reviews before making a purchase.
And here’s one more reason customers who return time and time again are worth their weight in gold: customer acquisition rates are rising. According to Profitwell, they increased 60% in five years. This is in part due to the rise in digital advertising costs.
BigCommerce is one of the leading open SaaS ecommerce platforms for mid-market and enterprise brands. We’re focused on helping brands of all sizes to innovate and grow. We maintain an open ecosystem of over 800 tech partners so you can customize and extend the platform to fit your business strategy — and that includes developing powerful customer retention and loyalty.
So let’s look at how you can keep customers coming back for more. Here are five strategies you can use to boost customer loyalty and their lifetime value.
1. Offer incredible customer service
This is customer retention 101. Customer service plays a major role in encouraging loyalty. In fact, Hubspot research found that 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. And poor service is an excellent way to make sure you never see those customers again. This includes providing a clean site experience that makes it easy for customers to find what they’re looking for and allows them to check out without too many steps.
If they have questions or issues and want to reach out, make sure your contact information is very clearly presented and that your response times are fast. Using chatbots on your website or social channels is one tactic that can help get immediate assistance for customer queries.
2. Connect with your customers
Relationships with consumers strengthen customer loyalty. One study found that 57% of consumers will increase spending with a brand they feel connected to. With competition higher than ever in eCommerce, creating a connection with customers can be a big differentiator. Sharing your values as a brand can build customer trust and, ultimately, loyalty.
One way to help forge a connection is to share your brand values on your page. Social channels are also a great way for brands to form a connection with customers as they allow for a more conversational tone and opportunities for interaction. You can also build direct connections by communicating with customers regularly through your outreach in emails and through SMS.
3. Provide a personalized experience
Customers are increasingly expecting personalized experiences with brands. This can go a long way with encouraging repeat shoppers and increasing order value. One survey found that 80% of consumers are more likely to make a purchase from a brand that provides a personalized experience.
Personalizing your customer experience can take many forms. It can include providing relevant recommendations based on their current or past purchases. Or you can send emails or SMS messages with special offers. Even just addressing messages by name can make customers feel special and more connected to your brand.
4. Build an engaged community
Along the same lines of creating a connection between your customers and your brand, it’s also a great practice to foster a community between your customers. Feeling like a part of a community around a brand can encourage customers to come back.
So how do you help your customers feel like they’re a part of something bigger by purchasing your products? Respond quickly and engage in conversation on social channels. Offer customers and followers a place to share their thoughts and engage with each other. You can also create opportunities for user-generated content. For example, you can suggest customers submit photos using your products and tag your brand in them and even offer incentives for doing so.
5. Offer a customer loyalty program
A customer loyalty program helps push customer loyalty by providing rewards to customers that frequently patronize the business’ products and services. Through the loyalty program, the customers may be given coupons and discounts, rewards, free merchandise, and early access to new products.
A good loyalty program has a number of benefits for a business. It can help you identify and target your best customers and increase their loyalty as well as turning them into influencers. In addition to reaching already loyal customers, it can help you retain future customers and increase lifetime value. A loyalty program will systematically move your customers up the buying ladder – converting first-time buyers into repeat buyers and keeping your repeat buyers spending more often with you.
Wrapping Up
In today’s highly competitive retail landscape, you need to go the extra mile to encourage repeat customers and build brand loyalty. Taking steps to connect with your customers, personalize their experience, and sweeten the deal with a loyalty program can help you attract and retain customers who can’t wait to shop with you again.
