Have you ever heard of customer loyalty ? It is a practice widely used by companies around the world and can save you a lot of money.
Customer loyalty consists of using actions during the sale and after-sales that aim to make the customer fall in love with the brand .
That’s right, fall in love. So that he wants to buy more products from that brand and talks about them to his friends, exactly as if it were a first love.
He falls in love with that company and creates a relationship with it , and it becomes the company’s job to care for this relationship of trust and satisfaction that can generate good results.
According to the Survey , 56% of consumers say they do not miss the opportunity to earn rewards and miles in their loyalty programs, even when these rewards are small.
According to the same website, 68% of Millennials (Generation Y) say they would not be loyal to a brand if it did not have a strong loyalty program .
Loyalty programs basically consist of a rewards program, in which the customer gains advantages by purchasing from that brand.
The advantages vary, they can be discounts, promotions and even gifts like free branded products.
This is a way that brands have found to foster the relationship with the customer , making the brand present in the consumer’s daily life.
In today’s article, we separate 5 reasons why your company should consider starting to think about customer loyalty .
1 – It’s cheaper
Did you know that acquiring a new customer is 6 to 7 times more expensive than keeping an existing one? So it is. This is the main reason why companies around the world invest in customer loyalty.
Selling more while spending less is every entrepreneur’s dream and with a well-structured customer loyalty program this is possible.
Once the customer has been loyal, he will no longer need so much effort on the part of the brand. He already knows the company, likes it and considers buying from it before the competitor.
It is an extremely profitable business for the company because, if the consumer already knows and likes those products, why risk buying from another brand?
2 – Generate new customers
When you have loyal customers, you create an army of brand promoters . It’s free advertising being done every day.
As we have already said, the consumer falls in love with the brand and, therefore, decides to declare his love by telling friends and family.
It is the most effective type of marketing : word of mouth marketing .
From the moment that a friend of yours tells you a certain product, says that the product is very good and that he was delighted, it is highly likely that you will also be interested in that product.
The name said is social proof , it is a phenomenon studied by psychology that says that human beings tend to reflect the actions of others in order to demonstrate correct behavior.
Indicating friends and family is also an excellent mental trigger , because if someone you trust already says that the product is good, it is unlikely that the person will spend time looking for other brands.
So, you could see that having loyal customers can generate countless new customers without you spending “a dime” more on it.
3 – It gives you “good fame”
This advantage is closely linked to what we just talked about. Well, if people go around praising your brand, you get a good reputation .
And brands that have a good reputation practically sell themselves. Do you know someone who bought an extremely expensive product even though it was poorly attended?
I bet that product was from a famous brand! Not that bad service should be rewarded, but that’s the reality.
Many people buy certain products for the brand’s fame and status , without worrying about price and without even looking at competitors.
4 – Allows you to charge more for products
If the customer is loyal to your brand, this is a sign that he likes the product you sell.
Now I ask you: if you always use a product, you like it a lot and don’t think about changing it, would you look for another one if the price increased a little?
Of course not? Because for most people it’s worth paying a little more to not have unpleasant surprises; it’s worth paying a little more for certainty.
This is why brands that have a large number of loyal customers can charge more for their products.
5 – Automatically puts you ahead of the competition during a buying decision
Imagine that you sell hair products. One of your customers uses your entire line of shampoo, conditioner and styling cream for oily hair.
It’s been months (maybe years!) using the same products. The shampoo runs out. What is the likely destination for this customer?
You, of course .
In the same way, if that same customer decides to dye his hair and now he needs a hair line for dyed hair and you have a line with these characteristics. Which brand will he look for first?
Yours, of course !
See how everything is connected? Delight customers and create loyalty programs to create an army of loyal customers that will bring even more customers to your brand, increasing your fame and revenue.
And at the same time, you can take customers away from your competitor using good loyalty programs.