Understanding Customer Loyalty: The Key to Repeat Business
People seem to think customer loyalty is this thing you chase like a chicken around the backyard, or maybe a reward for making people happy. Seems like you just have to be polite, deliver a product thatâs sort of ok and the customer will be there for life, leaving their wallet by your door each time they visit. I wish it worked that way.
What they donât realise is that despite their best efforts, even if it appears customers are sticking with them out of blind devotion - usually theyâre not. There has never been more competition for you and your business than there is now. COVID lockdowns forced so many brick-and-mortar businesses online. The landscapeâs changed irreparably from how things were before - whether we want to admit it or not.
And most newer businesses donât seem too worried about returning customers. When their overall growth rate is through the roof, they think âwho cares about satisfying those loyal folks who already bought my product. â âIâll keep getting more new people anyway.
â Some of them can sustain that pace without ever needing to focus on customer retention because new buyers always turn up somehow. But others care about long-term business survival over short-term exponential profits. If thatâs you, then keeping those existing buyers who are more likely to turn into repeat loyalists is where most of your attention should go (along with balancing new marketing efforts).
The thing with obsessing about loyalty though, is itâs easy to slip into chasing metrics at the expense of behaving in ways that make customers feel good about returning - which can decrease satisfaction and loyalty over time. Itâs a fine dance keeping an eye on important numbers while also remaining aware that behind every one of those digits lies a real person who may (or may not) want to stick around at all times. And yet loyalty can be won by figuring out what works best for you and your audience but more importantly, knowing when enough is enough rather than continuously pushing people to buy again and again.
Creating a Rewarding Loyalty Program
Seems like most people think you can slap a points card on anything and customers will come running back. The truth is, most reward systems are too generic, too slow to pay off, or just plain boring. The way I see it, shoppers see right through it - especially now when everyone is vying for their data and wallet.
More or less. I think this has led to quite a bit of apathy from even your loyal base. If you look at the programs that have worked - like Sephoraâs Beauty Insider, or Coles FlyBuys - thereâs a whole lot more going on under the surface. Thereâs clear instant gratification (discounts, free shipping, birthday treats), compelling engagement (early access to launches, surprise gifts), and enough aspirational value for people to want to stay in the system long enough to actually redeem something worth their time.
A tiered loyalty system can add a gamified touch - but there has to be true value here. Iâll admit it can get quite overwhelming when there are so many different kinds of shoppers within your target audience - not everyone wants the same rewards. Some are drawn in by discounts and others by freebies or exclusive access.
Many store owners end up creating something a bit too broad, but this is where I think tracking purchase behaviour comes in handy. Some groups prefer monthly discounts on basics while others donât mind waiting six months for an exclusive event or limited edition line. It seems like we know that building an emotional connect is important for loyalty but how do you put this into practice.
Especially if youâre not a major chain with deep pockets. It seems like i find that acknowledging milestones like birthdays and anniversaries (even store ones) is great for building individual relationships. Customers want to feel cared for by brands they buy from repeatedly - it feels like a fair trade after all that marketing data youâre collecting on them.
Personalization: Tailoring Experiences for Repeat Buyers
Personalisation is such a tricky word. It seems like everyone has something to say about it, but most donât know what it means - to actually be personal. Some people think that spamming the customer with birthday emails is enough - and sure, maybe it is, for some. But the reality of having to make someone feel special all year round, isnât limited to just a handful of holidays.
This is where I think brands have the chance to play around. Experiment. Not everyone has the same definition of feeling âseenâ. Maybe go beyond the purchase history and try to build a relationship with your customer base.
Try out different campaigns with different occasions - celebrating monthly sign ups, or hitting milestones in the brandâs journey as a whole. Brands donât have to celebrate individual milestones - although thatâs always great. They can include their customers in celebrating their own personal wins too.
I know this sort of thing can be hard to get right from the get go. Someone might feel like an overly peppy birthday email campaign or weekly reminders of upcoming sales might be personal and engaging. But it takes time and practice before understanding customer behaviour and segments becomes intuitive. Thatâs when things become interesting, though.
When you get creative about how you engage with your audience and provide them with meaningful content that adds value to their experience with your brand.
Leveraging Customer Feedback for Continuous Improvement
Now, this might sound strange, but some small business owners treat feedback like itâs an HR review - a lot of focus on the problem and not enough on how to fix it. Itâs all about the âfeedback sandwichâ and not enough about the âactionable planâ. Thereâs a certain performative side to this as well - surveys that go nowhere and a customer journey that doesnât really benefit from honest insights because someone in the corner office said it wasnât âon brandâ.
You can tell when people are only pretending to listen to feedback. Itâs on their faces, in the products, in the catalogue, and most definitely on their socials. It makes you wonder why we even ask for feedback in the first place if we arenât going to use it to improve. Because thatâs the magic of customer feedback - it can help you fine-tune your strategy so customers feel heard, valued, and understood.
There is no denying that things get a bit more complicated when we get negative feedback that we donât agree with. But when you welcome both positive and negative feedback, you learn how your customer thinks and feels about your brand. When this happens, your relationship with them gets stronger, which can translate to more purchases, a higher average cart value, and more recommendations. The way I see it, be sure to take action on that data quickly so there is a shorter time between data collection and strategy modification.
This is where most people go wrong - what is considered âswiftâ action can seem rather slow to customers who expect something closer to real time. Give yourself some time to take meaningful action though so you donât seem like youâre jumping through hoops at the last minute.
Engaging Communication: Keeping Customers Informed and Interested
It seems like most people think communicating with customers is about sending them a steady stream of information. And perhaps, itâs the right mindset â you want your brand to stay at the centre of their attention as much as possible, but this approach can quickly turn into spamming. Itâs quite easy to over-communicate, especially when youâre trying to keep your buyers engaged. So how do you do it.
To be honest, this is something a lot of us are still trying to figure out. What we do know for sure is evidently that communication should always offer some sort of value to customers. Rather than bombarding their email inboxes with every new product or service launch, there has to be a clear reason why youâre connecting with them and what they gain from opening your message.
Some businesses go for informational newsletters, while others choose short and sweet reminders that simply keep the conversation going, but not overbearing. Whether itâs through emails, WhatsApp messages or retargeting ads on social media platforms â hereâs what appears to work time and time again: make your content engaging in a way that makes customers feel like theyâre part of an exclusive club. In this case, excitement and FOMO can help buyers take action and make repeat purchases with little effort.
At the end of the day though, communication is not a one size fits all solution. There are plenty of examples where brands have been successful in keeping buyers loyal just by being authentic and building real relationships. And there are equally as many examples where creating FOMO has led to more interest and sales. The way I see it, each business is different and so are its consumers â so itâs key to test out various styles before landing on one that works best for you.
Building a Community: Fostering Connections Among Loyal Customers
It seems like businesses everywhere want to inspire customers to connect with them. Thing is - building a loyal community isnât just about sending personalised emails or thanking them for their purchase. Itâs about creating a safe space for your customers to feel like they belong and helping them create meaningful relationships with others who share similar values. After all, donât we all want to be a part of a club that will have us as members.
The foundation of an engaged community isnât only the service you offer or the things you sell. In truth, itâs a lot more about how your audience feels when they interact with your business and each other. Think âThe Sisterhood of the Travelling Pantsâ - minus the pants (unless youâre in that line of work).
Fostering deeper connections among customers involves regularly showing up for them - replying to their comments, helping them solve problems, sharing exclusive content, supporting their ventures and bringing them together over shared interests. Itâs also about nurturing that connection over time so it doesnât fizzle out. Not every customer wants to engage with your brand on the same level.
Some might come back for a unique offering and some because they love your personality (it happens) - this means, itâs also necessary for businesses to respect those boundaries and nurture connections with their varying levels of loyalty. Think of all the communities you are part of and why you became their loyal customer - was it because you felt like they care. Or because itâs cool to have your name on the founderâs wall. Either way, when customers become loyal to brands and other people who love those brands, thereâs a collective sense of belonging that can keep you relevant and thriving forever - but sometimes, it takes some trial and error.