When you think about customer loyalty what comes to mind?
Visions of rewards cards and loyalty programs are probably dancing around in your head. While that’s part of the equation, customer loyalty encompasses more than that.
What is customer loyalty, and why is it important?
In the age of social media and online review websites, your best customers are your most important asset. According to Qualtrics, 93% of customers read online reviews before buying a product. Praise (or complaints) from your loyal customers is often the first thing customers see when appraising your business.
Not to mention, positive customer word-of-mouth is a big advantage when trying to attract new customers. When customers like your brand, they talk about it. An American Express Global report found that 90% of American customers share their brand experiences with others.
This is pretty exciting news when you consider over 81% of customers trust recommendations from family and friends over those from companies.
Clearly, loyal, satisfied customers are one of your most powerful marketing tools. But how can businesses inspire this kind of continued support?
What builds customer loyalty?
At the end of the day, consumers are looking for the best price points. While there is definitely nuance here, our recent Customer Loyalty Report found that when discussing top retailers in the US and UK, consumers were highly motivated to advocate for brands that offer affordable prices.
Approximately 40% of consumer brand advocacy discussion around top retailers mentioned staying loyal to a brand because they offer quality products and fair prices, making it the top reason consumers promote top retail brands online. Businesses that can compete on price AND quality are in a great position to inspire loyalty among their customers.
But while customer loyalty does tend to encompass savings and rewards, customers today are increasingly interested in what companies are doing behind the scenes.
Is your company actively contributing to social justice causes? Does your business consider sustainability in packaging? Are your employees treated well?
Delivery is also a key reason why someone might advocate for a brand. Social posts mentioning delivery made up approximately 20% of all advocacy discussion for top retailers in the US and UK, according to Brandwatch data.
Ironing out issues with delivery should be a key priority for retail brands in 2021 – it’ll lead to happier, more loyal consumers, more online advocacy, and less online detraction