8 Tips for Building Customer Loyalty

Customer loyalty

Customer loyalty is something every business owner knows is important, but not always the reasons why. Customer loyalty is important for several reasons, including increasing your company’s profits.

Loyal customers make money for your business in numerous ways – they tend to buy more, more frequently, and they generate new customers for you with positive word of mouth and referrals.

Here are some tips on how you can deepen customer relationships, establish greater levels of trust and build stronger customer loyalty.

1. Understand the true purpose of marketing
Effective marketing is about building trust and developing relationships. Tom Asacker, marketing author, explains the purpose of marketing is to ‘create and maintain a strong feeling with customers so they are mentally predisposed to continually choose and recommend you’. Successful marketing also requires being relevant and unique, which brings us to Tip 2.

2. Identify and build your brand
This is not about your logo or slogan, but branding at the emotional and sensory level. Your brand is what your business is known for, how you engage with customers, and what people can depend on you to consistently deliver.
How could a customer describe your services to a friend? “They go out of their way to find solutions for me.” “The staff is warm and friendly, you can feel it as soon as you walk through the door.”

Identify your brand, and leverage it to see customer loyalty and referrals increase. Don't be shy about showcasing your uniqueness and strengths.

3. Tap into what customers want

To appeal to a customer's needs or desires, you must first understand their motivations, values, and priorities. Each customer has unique needs and wants.

Being tuned in to what customers want and being sensitive to their evolving needs will help you become more resourceful and innovative over time. That is an excellent way to set yourself apart from other businesses and help you build memorable, lasting customer relationships.

4. Outcomes matter
Practicing good interpersonal skills and maintaining solid customer relationships are important for developing customer loyalty. But what really matters to customers are results they can see, count on, and talk about.

Customers might come to you a few times because you have the right product or service for their needs, but they won't keep coming to you based on your business personality alone. Customers must trust you to help them; they must see results and learn something from you to make it worth their while to continue as your customer.

Remember, customers refer friends and family members with comments such as "I've never seen such great service before"—not "Customer service staff are great conversationalists."

5. Integrity leads to trust, which leads to a relationship
Integrity involves fundamental behaviors such as keeping your word, being honest, providing a consistent level of service, and being reliable. Businesses that demonstrate a high degree of integrity are seen as trustworthy.

Building trust requires the businesses to continually put the customer's interests ahead of their own and display a genuine "other" orientation. You demonstrate that by being interested rather than interesting, and by not treating every interaction as an opportunity to share your message.

All that adds up to doing business with integrity. Without integrity, there is no trust, and without trust, there is no enduring relationship.

6. What have you done for me lately?
One of the most common mistakes businesses make is focusing primarily on the early part of the sale. They wrongly assume that once a customer is happy, that customer will stay happy and continue to use the services.

Each customer's experience is the sum of every small experience that customer has while in your place of business. Ask yourself, If I were this customer right now, what would I really want in terms of product, care, and service?

Remember, your customer is always thinking, What's in it for me? What you do (or fail to do) at every point during a customer's course of care makes an impression.

7. Never take loyalty for granted
A successful external marketing campaign will encourage people to try you out, but only good outcomes and an authentic relationship with you will keep them coming back.

Never take loyalty for granted. Never underestimate the power and value of the one-to-one relationship customers have with you and your staff.

Customers return to where they feel connected, where they have a sense of belonging, where there is mutual esteem, where they are treated with respect, and where their care results in positive outcomes.

8. Word-of-mouth marketing isn't new

Third-party endorsement or customer referral has long been the foundation of marketing.

What is new is that the bar for what customers expect in the way of service is higher today. Being good isn't good enough to get customers talking about you. Outstanding is the new good.

Polls repeatedly show the quality of customer service is on the decline across industries. When you consistently exceed expectations, customers become "raving fans." Those are the customers who refer their friends, relatives, neighbors, and co-workers.

Learn to recognise those customers, cultivate them, and express your appreciation accordingly.

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About the author

Jodie is the Managing Director of PJT. She leads the team in making sure we are providing you with exceptional service and are always staying one step ahead. She now puts her experience in growing businesses into PJT.