How can I increase my customer loyalty?
The most effective way to grow your sales is by making customers loyal. Research shows that 5% more customer retention leads to an average 25% increase in profits. This is because loyal customers provide positive word-of-mouth advertising. Investing in customer loyalty is much more profitable than acquisition and is also much cheaper. Below we give you the three most important tips to increase your customer loyalty.
1. Go for the perfect customer experienceProvide the customer with a positive experience by exceeding expectations and going the extra mile. During each contact moment in the customer journey you want to give the customer a pleasant experience. A negative customer experience is five times more important than a positive experience. This will therefore stay with the customer much longer. So you want every contact to be a special experience and to offer that superlative piece of service, quality and friendliness. Customer loyalty starts with customer satisfaction.
“Provide the customer with a positive experience by going the extra mile”
2. Create multiple contact moments….It’s important to connect with your customer on a regular basis. These contact moments ensure that the customer becomes emotionally involved with your brand. At the same time, these moments make the customer feel more appreciated and recognized. These emotions stimulate repeat purchases.
…and make optimal use of contact momentsAdded value promotions are a great way to combine the perfect customer experience with extra contact moments. To get an idea of an added value promotion, take a look at the case of Pricewise, for example. This online price comparator gives the customer a physical gift when they purchase insurance through their platform. This personalized incentive can then be used by the customer for a year. Customer contact often stops fairly shortly after purchasing a product or service. Pricewise manages to extend this contact moment to as much as a year after concluding an insurance policy. This well-chosen incentive keeps the brand on top of mind with the customer.
3. Add valueCompetition is high and price wars have become almost daily business in many sectors. If you give discounts on products or services too often, this can detract from the value and experience that customers attribute to your brand. At Touch Incentive, we believe it is better to add value to a service or product than to compromise on price. This way, the quality of your brand is maintained and there is room to create an extra experience, for example by using an incentive.
Case study RenaultAnother example of an added value promotion, is that of Renault. It is very important for this brand to lead customers to its dealers. Here customers can experience the quality and friendly service of Renault. For Renault, this creates an important opportunity to connect with customers on a personal level, get to know them better and increase customer loyalty. For this reason, Renault wanted to create a loyalty campaign. For this purpose, Renault creates three major moments in the year; the Summer Check, the Winter Check and the Spring/Airco Check. For each moment, Touch develops an annual loyalty campaign that combines the quality car maintenance check with an added value benefit card as a reward. This added value benefit card, completely in the look and feel of Renault, creates a unique distinguishing feature compared to other dealers. Moreover, it adds extra value to the quality control, which convinces customers to go to a Renault dealer for the maintenance. On top of this, Touch arranges an additional valuable incentive for those customers who sign up for Renault’s loyalty program; My Renault. By combining these two loyalty campaigns, Renault can effectively strengthen the contact moments with its customers and thus increase customer loyalty. View here the campaign of the Renault Winter Check 2019, which has become a finalist of the Loyalty Magazine Awards 2019!
“It is better to add value to a service or product, than to compromise on price “
From customer satisfaction to customer loyaltySo increasing customer loyalty is done by giving the customer a perfect experience with your brand, but also by making and keeping contact. In addition, discounting is not always the solution to attract customers to your brand. Adding value to your products or services is. Would you like to further spar about the possibilities of increasing customer loyalty? We like to think along with you. Are you curious about all the reasons why customer loyalty is important? Then read this blog.
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