Building brand loyalty is all about retaining existing customers. Did you know attracting new customers costs five times more than nurturing existing customers? We bet you didn't know it.
As a business, you are very well aware that your customers are the reason your business is running. A relationship built over time pays off. Similarly, investing in a customer gives you more sales.
It is quite obvious from the numbers above that building customer loyalty gives you a more sustainable business. 67% of consumers said good customer experience encourages them to stay longer or spend more money.
Cultivating a lifelong and loyal relationship with your customers keeps bringing them back. Focusing on building a strong and meaningful relationship with your customers also helps improve customer experience.
Today we will detail some useful tips, and strategies businesses can employ to strengthen brand loyalty. Before we move forward, let’s discuss brand loyalty and its importance.
What is Brand Loyalty?
In simple words, brand loyalty happens when a customer gives you repeat business, and their preferred brand choice is your brand. If your quality of service is great and the customer experience is consistently meeting their expectations, you can see an increase in customer retention.
Quality of service is one of the decisive factors for the success of any business. 56% of global consumers say customer service is “very important” in brand choice and loyalty. Promoting customer loyalty gives you more business than marketing a product.
Some of the important indicators of a loyal customer are:
- Give you repeat business
- Recommend your products to others
- Prefer your over your competitors
- Talk about your brand on social media channels
- Provide feedback so you can improve
While we are all for customer retention, we also consider acquiring new customers. Though less effort is needed in customer retention for a business, customer acquisition also holds great significance.
Brand loyalty is customer retention. Customers may like the service quality, perks, value for money or discounts. Whatever it is, consistency goes a long way and encourages customers to remain loyal to your business.
Why is Brand Loyalty Important?
If a company gets repeat business, it generates income. It is considered a cost-efficient method of increasing revenue. The customers are brand ambassadors who bring in referrals. A company needs to put in a lot of effort to keep them coming.
Building meaningful and personal relationships with customers helps in improving business. As an e-commerce business, you can find multiple ways to attract customers. Since online purchases do not offer an in-person interaction, you can still make them come back with outstanding services and quality products.
Lying about product performance is the top reason customers switch brands. 31% of American consumers would switch brands if they caught their favorite company lying about product performance or efficiency.
Retaining a customer helps you gain more conversions. Brand loyalty can make customers your brand ambassador. Since online reviews are important for sales, existing customers can take up the role of an ambassador and refer your brand gladly.
So, as a business, you must put in the effort and build a lifelong relationship with your customers.
Benefits of Customer Loyalty
Now lets us see some of the benefits of customer loyalty to give you a clearer picture.
Spend More Money
Repeat customers already know the quality of your services and products. They trust you and are willing to spend more than new customers. The amount they spend on buying your services and products increases with time. 50% more likely to try a new product and spend 31% more than new customers.
Boosts Revenue
Customer retention can do wonders, and if you increase 5% of customer retention, it could increase business profits by 25% to 95%. This is why customer retention boosts profits.
Regular Shopping
You see more of your regular customers around holidays when they are doing gift shopping. They tend to spend more because they have already purchased from you before and trust you. You can expect regular visits from old customers compared to new customers.
Helps You Plan Ahead
You can plan your marketing campaigns if you know your loyal customers. It helps you include features and products that they like. You can expect regular visits from old customers compared to new customers and seek benefits.
7 Proven Ways To Create Brand Loyalty
Building customer loyalty offers a lot of perks. It is a cost-efficient method to increase revenue, and companies need to stay focused to reap benefits. As we enter 2023, new trends and strategies set the path for business success. We will put forth some useful strategies businesses can employ to create brand loyalty. Let us learn what we have in store.
1. Build a Customer-Centric Business
Customer is the backbone of any business; we cannot stress this enough. At Arka, we specialize in custom packaging and make sure that our customers are satisfied with our services.
Result?
AJ Agrawal, Founder of Verma Farms, who is also our client, talks about our services and says:
I chose Arka because after doing a ton of research, it was obvious they were the best option. They were able to take my artwork and turn it into a unique package that myself and customers love. Reordering and connecting to our WMS makes it easier, too, that was always a pain for us.
It is essential to know the key performing indicators of any business. Your customers feel valued each time they come to you, which defines a customer-centric business. When designing a strategy, ensure you put your customers at the centre. Think from their point of view and see what makes them stick to your brand or give you repeat business. Is it the value for money, price, quality of service, appeal etc.? Once you have a list of pointers, do not deviate. You should maintain the KPIs as they help set a path for success.
2. Be Grateful To Your Customers
As an e-commerce business, you can use packaging and custom inserts to make your customers feel valued. Showing gratitude towards them for ordering from you and using your service is a great way to value your customers. You can boost customer satisfaction by including a simple thank you note.
Consider this; you have a stunning packaging design and a great product line. What else can you do to build customer loyalty? Include a customized note to let your customers know you care about them. A custom thank-you card conveys gratitude and thoughtfulness. It helps you build a personal connection with your customers, which otherwise seems hard. As a result, they feel valued, which builds their loyalty to your business.
Following are some of the ways that can help you design a thank-you card and show gratitude to your customers:
- Address your customers by their first name
- Include specifics about the product they purchased
- Acknowledge if they are a returning customer (or even new)
- Show how they have contributed towards a positive change by doing business with you
- Include your company’s mission statement and your commitment towards it
- End it with a positive message
3. Give Benefits To Your Customers
Meeting your customer’s expectations is always a sign of customer satisfaction. However, if you go one step ahead and include perks with every purchase, it can go a long way. Adding discount coupons and samples of other products communicates value.
Your interaction with your customers should continue after the purchase. Efforts should be made to keep the connection strong, and you should keep in touch till the end. If your company introduces a new product, sending a sample with the package to your existing customers is a great way to build anticipation and a loyal following. Offer perks of shopping so they can come back again.
4. Sustainable Packaging
One way businesses can help save the environment is by using sustainable packaging. Sustainable packaging has become a core of any business that wants to sustain itself in the market. People have become more conscious about their brand choice, and preference heavily relies on the company’s efforts to save the environment. Sustainable packaging reduces ecological footprint and environmental impact.
The eco-friendly packaging supplies companies use reduce carbon emissions. Corrugated boxes, cardboard, mailers, etc, are some recyclable choices of materials. Since buyers prefer buying products with sustainable materials, it is a great way to build brand loyalty. Another interesting stat about green packaging is that the market value of sustainable packaging in 2019 was about 178.6 billion dollars. It is expected to increase and reach 246.3 billion dollars by 2025.
Using sustainable packaging will attract customers and increase brand loyalty as you meet their demand for green packaging. Studies have shown that consumers now focus on sustainability and prefer buying from brands that share the same view. 45% of buyers are willing to pay more for green packaging. So, by switching to green packaging, you can attract a significant chunk of demographics that give you customer loyalty.
5. Custom Packaging
The primary purpose of custom packaging is to offer you a design that safely delivers the product to your customers. If you have a great product line but fail to deliver the product in one piece, they will not return. Custom packaging offers you a way to deliver products without any damage. Customers also like packaging designs that are durable, lightweight and use sustainable packaging.
Giving your customers a memorable shopping experience from the comfort of their homes is a smart way to build customer loyalty and brand identity. With so many competitors out in the world, you need to set your identity, and custom packaging helps you establish it. Custom packaging helps you:
- keep your products safe
- build customer retention
- build customer loyalty
- build brand awareness
- grab customer’s attention
- create a memorable unboxing experience
Thousands of products get recognized by the brand's color, logo and packaging design. Custom packaging offers you a chance to stand out in the crowd. Arka offers top-quality custom shipping boxes and mailer boxes that help increase brand loyalty. They have custom packaging options for any niche: contact them even if you need custom cosmetic boxes or shoe boxes!
6. Engage Customers on Social Media
Bill Gates said, “If your business is not on the Internet, then your business will be out of business.”
Social media is a powerful tool for building a loyal following online. Building a powerful community online gives your customers a chance to communicate and share their experiences. Moreover, you can also get their feedback about your products and services. Building relationships online allows you to have a strong online presence for your customers where they can always reach you.
Today, your customers might perceive you as irrelevant if you do not have an active social media profile. Look at your competitors and see how they interact with their customers. Sharing behind-the-scenes (BTS) activities encourage consumers to come back to you. You can also use the BTS option to build curiosity before the launch of a new product.
As you create content for your online community, answer the following questions.
- Does your content align with your brand's values and story?
- Does the content resonate with your target audience?
- Does it catch the user's attention?
- Does it engage your audience (like, share, comment)?
7. Evolve Your Business
The success of any business depends on its ability to evolve. Your customers continuously look for new products and ideas, which change over time. As an e-commerce store, you must remain up to date about the growing trends in the market. Researching your customers' needs and designing a strategy that meets their expectations is the first step towards fulfillment.
If customers know they are getting the best, they will not need to go elsewhere. It builds loyalty and makes you an indispensable entity for your customers. Innovation is not restricted to technology; you can experiment with branding, marketing, culture and products. Your end goal is to satisfy your customers and provide them with excellent services, so they do not find a substitute.
Conclusion
Customer retention helps you grow your business and build brand loyalty. Global e-commerce sales are expected to total $6.3 trillion worldwide in 2023. Customers look for value for the money they spend on the products. Arka helps you custom-design your packages to provide an unforgettable experience to your customers. You can build brand loyalty today and increase revenue with these tips.
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