While I normally consider myself a fairly loyal person, I can be fickle when it comes to the companies I do business with. In some ways, I fit the stereotype of the “Millennial consumer” — I prefer self service, I like to purchase from companies that support ethical causes, and I love it when brands interact with me online.
However, I’m also a sucker for a good deal, and you’d better believe I’ve been sucked into more than my fair share of purchases by a great coupon.
Despite this desire to find the best bargain, there are a few brands out there that have me heart and soul, and I’d be hard pressed to ever let them go. If you’re wondering just what it was that won me over, I can tell you without a shadow of a doubt that it was: fantastic customer service, a great loyalty/rewards program, and interaction/appreciation on social media. These three things have one thing in common — they show that the brand cares about me as a customer.
Loyal customers are worth their weight in gold, and keeping them loyal should be your business’s top priority. Let’s look at a few reasons why.
Why Keep Them Loyal?
It’s in your company’s best interests to invest in customer loyalty. Not only does it cost less to keep current customers than to acquire new ones, it also impacts your bottom line in a by bringing in more revenue. For instance:
- 80% of your company’s future revenue will come from just 20% of your existing customers. (Gartner Group)
- The average repeat customer spent 67% more in months 31-36 of their shopping relationship than in months 0-6. (Bain & Company)
- High satisfaction rates result in 2-12 times higher recommendation ratings. (Market Force)
If you want your customers to continue forking over their hard earned money — and recommend their friends and family do so as well, you’ll need to invest in keeping them around.
Why They Stay.
What keeps your customers loyal? Unfortunately it’s not as easy as throwing a few coupons their way every now and again. Here are a few reasons why they may remain faithful:
- 86% of consumers say loyalty is primarily driven by likeability. (Rare)
- 83% of consumers say loyalty is driven by trust. (Rare)
- 77% of consumers like when brands demonstrate their appreciation (TD Bank)
- 81% of consumers are more likely to continue doing business with brands that offer loyalty programs (Bond)
- 62% of Millennials report that brand engagement is more likely to make them a loyal customer (USC Dornsife)
- 97% of consumers said they are somewhat likely to become more loyal to a company that implements their feedback (Apptentive)
Again, the pattern here is caring. Do you care enough to be friendly, trustworthy, show appreciation, listen to and interact with you customers? If so, they’re likely to stand by your business through thick and thin — if not, your competitors are waiting with open arms.
Why They Leave.
No business is ever 100% successful in keeping customers; there’s always bound to be loss. However, you have it in your power to do what you can to negate that loss, and much of it centers around customer service.
- 55% of consumers said they are not likely to continue being a customer of a company that ignores their feedback (Apptentive)
- 60% of consumers have not completed an intended purchase based on a poor customer service experience. (BI Intelligence)
- 52% of consumers have switched providers in the past year due to poor customer service (Accenture)
- 47% of customers will take their business to a competitor within a day of experiencing poor customer service (24/7)
- It takes 12 positive customer experiences to negate one unresolved, bad experience (BI Intelligence)
- Once a provider loses a customer, 68% of consumers will not go back (Accenture)
The way you treat your customers means everything to retention. The more positive experiences customers rack up, the deeper their connection to your brand and your product/service becomes. As long as you give them a good deal, pay attention to their feedback, and say thank you as often as you can, you’re destined to meet with success.
Liz Greene is a writer, marketing professional, and full blown pop culture geek from the beautiful City of Trees, Boise, ID. When she’s not stalking the aisles of her local Ulta, she can be found shoveling down sushi while discussing the merits of the latest Game of Thrones fan theories.