The pandemic was a time of massive downturn for the economy. Many businesses struggled for survival in this tough time. As a business owner in 2022, branding and client loyalty are two of the most critical principles to prioritize. Regardless of the differences, both affect customer retention and repurchase rates.
COVID-19 has put the economic world under tremendous crisis. As a result, businesses are trying hard to recover the jolt by including various schemes to retain valuable customers. But still, the situation is harsh as the demand is low and customers are looking for less priced products even by compromising the quality. In this scenario, customer loyalty programs are playing a bigger role in diminishing customer attrition and boosting the process of customer retention.
Let’s look at why customer loyalty is one of the major strategies that businesses should implement to survive the global crisis. But one must remember that these strategies should be incorporated by aligning customer’s interests and company’s needs. So keep scrolling below!
Customer Retention is Less Expensive Than Customer Acquisition
The pandemic has affected almost all businesses, whether global corporate firms or small business institutions. And the uncertainty of new customer development and the reluctance of customers to invest in new brands makes it difficult for businesses to acquire proper financial growth. Furthermore, new client acquisition is an expensive marketing process than client retention. As a result, the existing customers form a strong foundation of business revenue generation than a newer one. That is why companies are coming up with new schemes and implementing innovative loyalty programs to retain valuable customers.
More Brand Loyalty Means Better Business Growth
It has been observed that existing customers generate more than 65% of business revenue. If more customers are loyal to your brand, it is easier to achieve subtle business growth. Further, it is easy to sell a new product or service to existing customers as they already know about your services & are assured about your quality. But, at the same time, it is difficult to convince a new customer to try a newly launched product or service.
Brand Promotion Gets Easier With Loyal Customer Base
Promotion of a product or brand is done in various ways following various marketing strategies, but word of mouth is still considered the best among all of them. A loyal customer base helps promote your brand or product unknowingly by recommending your services to others. Even sometimes, sharing it on the social platform helps reach your brand to millions of consumers. So, it is essential to keep your existing customers happy and satisfied by offering them rewards from time to time.
Customer Loyalty Offers First-Party Data For Personalized Experiences
First-party data is the most important information that a business collects directly from the customers, and existing customers form most of it. Therefore, customized loyalty programs will encourage the customers to stay more engaged with the brand by sharing important information.
Building Brand Loyalty in 2022
Over the last two years, the business world has seen and felt the worst downfall; therefore, in 2022, companies are building brand loyalty by introducing the following methods.
- Upgrade to Connected Packaging: Upgrade your products’ existing packaging to connected packaging. It will act as a gateway that helps in connecting with your end-customers.
- Start Loyalty Programs: Use loyalty schemes frequently and innovatively to attract customers’ undivided attention. Connected packaging can be a great way to implement such campaigns.
- Make Your Brand Memorable: Provide an innovative physical and digital experience with your products. Provide useful details like How to use the products, lab reports, benefits, etc that can be accessed through phone with a tap.
- Engage them with innovative campaigns: Run innovative campaigns to keep the customers engaged with the Brand. However such campaigns can only be successful if a proper channel of communication is used to inform customers about it.
- Deliver Quality And Value: Whether you are in the product industry or service, one must not compromise the value.
- Be A Problem Solver: Try to solve customer issues as quickly as possible.
- Be Responsive: Be responsive to your customers’ complaints & demands, and suggestions and act accordingly.
Conclusion
Customer loyalty has many advantages. Customers are more inclined to stick with a brand if they have faith in it. Having a great customer loyalty programme can encourage as many as 54% of your current customers to conduct more business with you.
Know about contemporary loyalty and learn how to make personalized offers scalable and smarter with Let’s Verify so you can engage and connect with the modern customer.