Having a steady stream of customers is crucial for the success of every business. When your customers continue to trust your brand and use your products, your company will remain profitable. Moreover, gaining their loyalty is beneficial for your brand’s reputation.
Before we dive more deeply into the importance of acquiring customer loyalty, let’s briefly discuss what it actually means. Loyal customers are those who repetitively purchase from your business and encourage others to try the products you offer. Additionally, while customer loyalty and retention are sometimes used interchangeably, the two are different.
Unlike loyal customers, retained customers don’t necessarily have to buy from your company again. They are only considered retained because they haven’t yet purchased from another business. Hence, it’s incorrect to use the two terms conversely when describing customers.
Why is Customer Loyalty Important?
According to Marketing Metrics, the chance of selling products or providing services to an existing customer is about 60% to 70%. As for new customers, the likelihood is estimated at around 5% to 20%. In addition, most businesses’ revenues are likely to be generated from repeat customers, as per studies. About 61% of companies said that most of their earnings are generated from repeat customers.
However, this does not mean that getting new customers should no longer be a priority, as they are also crucial for your business’s growth. The good news is, when you gain the loyalty of your current customers, you hit two birds with one stone because you can attract new customers, as well.
As previously stated, loyal customers can help boost your brand’s reputation. When people are happy with the products and services they are getting, they are likely to share their experiences with others, thereby becoming your company’s advocates.
Accordingly, when your customers vouch for your business’s credibility and competence, you benefit significantly from their word-of-mouth reviews and referrals.
Building Customer Loyalty through Quality Customer Service
As it is often said, people tend to remember others not by what they did but by how they made them feel. This also applies to business-customer relationships. In addition to the quality of the product itself, shoppers value the experiences they get. Hence, one of the best ways to earn loyalty is to provide them with commendable customer service.
Customer service is the support your customers receive from your business, both before and after sales are made. Offering excellent customer service is vital if you wish to retain your buyers and grow your company.
Now, what exactly does customer service include? Nowadays, customer service involves far more than just talking with telephone-support agents. Customer service is widely available through various channels, including email, social media, and the like.
Many medium to large-sized companies also offer self-service support so that they can provide this service 24/7. In addition, providing good customer service will also help you retain your customers.
It’s crucial, therefore, to have a reliable team of customer service agents. If managing your own support department is too costly, you may also try outsourcing your customer support to reputable third-party agencies.
How Can Good Customer Service Boost Loyalty
- Customers Become More Tolerant and Forgiving
When buyers are satisfied with the customer service they are receiving, they aren’t just more likely to repurchase from your business; they also tend to let minor shortcomings slide, such as delays in shipping or frequent unavailability of stocks. Loyal customers will stick by your company even though not-so-positive experiences.
- You Can Turn Bad Testimonials Into Good Reviews
When you give a prompt response to customers who have posted negative reviews, there’s a big chance that they would update what they have written. There are plenty of instances when customers who have previously complained give rave reviews about how fast their issues have been resolved by the business and how considerate and empathetic the customer service representatives have been.
Of course, it’s also crucial to not wait for bad publicity before addressing a customer’s concern/s.
- Customers Value Efficiency
When customers have a good experience with your company, they are more likely to think of your business the next time they need to purchase the type of product you are offering. This is because they already know that the transaction will be quick and convenient. Hence, ensuring that each buyer you get has a great customer experience is essential.
- You Can Showcase Your Company’s Competence
As previously mentioned, good customer service can turn tables around. Accordingly, one of the best ways to gain loyal customers is by handling their complaints well because problems provide you with chances to showcase your company’s promptness and decisiveness in addressing issues.
According to the Customer Contact Council, customer loyalty has minimal to no relation to exceeding customers’ expectations. It is more connected to how little effort a customer has to exert and how fast it will take for his or her problem to be resolved.
The Bottom Line
Providing good customer service is crucial to winning the trust of your customers. When you enable them to enjoy great shopping experiences through excellent customer support, your business will leave a positive impression on them. Hence, because they are satisfied and happy, it will be easier for them to be retained and eventually become loyal to your business.
You can utilize a variety of technology strategies to improve customer retention. It will also be helpful to look into great customer service practices before developing your customer service tactics.
Lastly, keep in mind that everyone wants to be heard and feel understood, so it’s important to show consideration and sensibility when dealing with customers’ complaints.
Customer Service Executive With Headset -DepositPhotos