Building customer loyalty

Research shows it is significantly cheaper to retain and engage loyal, repeat customers than it is to try to improve sales and revenue through acquiring new customers.¹ So, how can you bolster your loyal customer base and keep them coming back?

1. Create a positive customer service experience

Focusing on creating positive customer service experiences can greatly improve customer loyalty. With the rise of automation, what is going to truly stand out is empathetic, easy-to-navigate and personalized customer service.² Avoid one-size-fits-all approaches and work to be flexible to your customers—especially with frequent repeat customers. Work to hear, know and anticipate their needs.

2. Utilize email and social media marketing

Email and social media marketing can be an effective tactic for customer retention. Both platforms can be used to show appreciation and stay engaged with customers — and collect valuable customer insights for your business.

Email — Use email to keep your customers engaged with your brand. Content and frequency will vary depending on your industry and type of business. Beyond providing your customers with information on sales or new products and services, you may also consider sending emails to welcome new customers to your brand, celebrate birthdays, share exclusive content and more.

• You can also use emails to gather customer feedback. Ask them to take quick surveys or participate in focus groups to gather information on what you’re doing well and where you can improve.³
• Before sending emails to customers, make sure you’re familiar with current email marketing laws and regulations.

Social media — This is a great way to create awareness about your business, but it can also be a powerful tool for keeping current customers.

Social media and engaging with customers online is an effective way to improve loyalty.⁴ Make it a standard process to check social media and monitor customer feedback about your business. This also creates a great opportunity to engage with customers on digital platforms by thanking them for their feedback. And you can share customers’ posts or positive reviews about your product or service on your own social media channels.

Social listening is another useful process that involves observing what your customers and other related businesses are posting on social media in general (outside of how they are engaging with your business). This allows you to gather feedback by keeping up on the latest trends and influencers in your industry. What are your competitors doing well? In what ways can you do better than them? If you do not have the capacity to monitor social media daily, look into platforms like Hootsuite that can track certain words and tags relevant to your industry.⁴

3. Develop a loyalty program

A loyalty or rewards program incentivizes customers to buy more—and come back for repeat business. Here are some things to consider when kicking off your loyalty program:

1. Define the loyalty program’s goals and metrics. What results are you seeking? How will you measure success? Be specific and realistic about your goals.⁵
2. Consider the advantages and disadvantages of the different types of loyalty programs.⁵ Are you best set up for a simple punch card system, where customers earn a punch for each purchase? Or do you have the infrastructure and technology for something more complicated like a points-based system?
3. Prioritize clear and consistent communication. Make sure customers know how to join, what they will earn, all the rules and how to track their progress.⁵ Remember, customers often need to be reminded that the loyalty program exists and all the benefits they get when they participate.

4. 4. Develop channels for customer feedback

   Customer feedback is a powerful resource for your business. By learning about individuals’ opinions and experiences using your products or services, you’ll gain helpful insights into their satisfaction levels.⁶ After all, your main goal is to be there to help solve problems and fulfill needs.

   Even negative feedback can help bring positive outcomes. Starting conversations, even with dissatisfied customers, can also lead to increased customer loyalty. Individuals appreciate being heard—and your attention to their concerns will show that you are truly focused on their needs.

   Building your business for the future

   Taking steps to maintain customer loyalty can help protect you, your employees and your business for the future. We’re here for support and to help you future-proof your business. Get in touch with a Nationwide agent or get a business insurance quote today.

[1] “30+ Invaluable Customer Loyalty Statistics [2023]: What makes customers come back?” Jack Flynn, zippia.com/advice/customer-loyalty-statistics/ (Accessed February 2024)
[2] “14 Customer Retention Strategies That Work in 2024” Toni Matthews-El, Cassie Bottorf, forbes.com/advisor/business/customer-retention-strategies/ (Accessed February 2024)
[3] “22 Examples of Customer Retention Strategies That Actually Work” Sophia Bernazzi Barron, blog.hubspot.com/service/customer-retention-strategies (Accessed February 2024)
[4] “Social Media Listening: Improve Your Customer Experience and Loyalty” linkedin.com/pulse/social-media-listening-improve-your-customer-experience-loyalty/ (Accessed February 2024)
[5] “What are the key features of a successful customer loyalty program?” linkedin.com/advice/0/what-key-features-successful-customer-loyalty (Accessed February 2024)
[6] “The Benefits of Customer Feedback, According to Experts” Flori Needle, blog.hubspot.com/service/benefits-of-customer-feedback (Accessed February 2024)