An average business organization can lose up to 20% of their total client base each year just because it didn’t manage to create solid customer relationships. In certain industries, this percentage can rise up to 80%. No matter which case we are talking about, these losses are heavy and they can do a lot of harm.
When talking about building enough customer loyalty, there are many things that you must consider. The first thing to go through is the infrastructure you use for understanding customer behavior, sentiment, and feedback. When you have designed such an infrastructure, only then can you start working on increasing customer support and loyalty.
Customer relationship management tools (CRM)
A CRM is an effective tool that can help you find ways to improve customer satisfaction by learning how they behave on a certain site and understanding their journey on it. When you use a CRM tool, you should always combine it with some other tools that I will mention today, in order to create a solid customer retention strategy. For example, with a CRM tool, you can track which customer earned which badge within your gamification strategy, or who earned a lot of points within your loyalty program.
A CRM tool has a lot of benefits that revolve around operations and it can also enhance customer retention. When you have all of your customer interactions and information stored at one place, it will be much easier for you to design an amazing customer experience, which is essential for customer loyalty.
Loyalty program tools
One of the best ways for boosting customer loyalty include loyalty programs. When a customer gets something for buying products from you, such as points or discount coupons, the chances of that customer coming back to buy something from your store again become much higher. These points that buyers earn create switching costs. If that customer goes to some other competing business, he or she will be losing the points (money) they have “earned”.
With a loyalty program tool, you can reward customers for more than just their loyalty. You can also give customers points to boost some profitable actions including referrals, social sharing, reviews, etc. In most cases, points are used to cover up the true value of the things that you are rewarding.
Gamification
Game mechanics are no longer being used just for videogames and mobile apps. You can also use the power of gamification to improve the purchasing process. With this concept, you will encourage customers to perform an action by making the whole thing more fun, i.e. by adding a dose of competitiveness.
Websites that support gamification usually have statuses, badges, leaderboards and similar things that can be shared by people, so that others can see how they’re doing. Gamification tools can allow you to incorporate these concepts into loyalty programs and promotions and make people want to come back to you over and over again.
Customer loyalty is becoming more and more important each day. As there are more businesses offering similar products, it can get harder to keep customers coming back and this is why you should really invest your time in a customer loyalty program.
Finoit is an technology company and has helped numerous enterprises and SMBs in devising their customer loyalty strategy. We have delivered over 200 mobile apps, and can be reached on info@finoit.com for any query/question.
