Thursday, 12 August 2021

Consumer Loyalty

 What is customer loyalty?


Consumer loyalty generally explains the positive relationship between the producers and the consumers. It is a relationship established that encourages your consumers to repeat the purchase and makes your customers continuously choose your product over any other competitors with similar services.


The most common thing with which the consumers remain loyal is the brand. Brand name makes the consumers associate with a positive experience and good service, high product quality, etc. Consumer Loyalty isn't built through a single product or service; rather, it is built through several positive interactions that create a feeling of trust inside the consumers regarding your company or brand. But this doesn't mean that the interaction is always going to be positive and even consumer loyalty can withstand a few negatives although too many can break the loyalty.


The fact is that the consumers don't become disloyal just because of a single poor experience but they observe how the company deals with the problems to provide better results to the customers. Even this has been proven that a consumer who has a bad experience but soon the brand fixes it is more loyal as compared to the one who never had such problems.


Why is customer loyalty important?


Consumer Loyalty is very important for any of the companies. This is not only because the company needs less effort to sustain a customer rather than acquiring a new one. There are more reasons to promote consumer Loyalty.


The new customers are harder to convince to be connected with the business since they have little to do with it. So, here you'll require not only to make them aware of your brand but also you need to make a good marketing strategy to push the customers to buy your products.


On the other hand, the customers who have already bought some products from you do not require any awareness and are already aware of your products and businesses. Also, they are easy to convince for a repeat purchase. This simply implies that the more loyal customers mean you need to spend less on conversion tactics.


Apart from this, another advantage of consumer Loyalty is that you'll have a loyal consumer who will keep coming back to you to make purchases. More than a repeat business, the loyal consumer spends more on your products and helps to create more customers.


The loyal consumers will not only boost your brand economically but also work as the brand champions, brand promoters, etc. Your happy customers have the potential to bring more customers to your door. They do this by sharing their positive reviews with their friends and family and posting on social media. Consumer Loyalty also lowers the burden on your support and customer service team.


How to measure consumer Loyalty?


Since consumer Loyalty is a very crucial thing even to estimate the growth of the business, here are some of the major metrics to measure consumer Loyalty for your business.



1. Net Promoter Score

The first one is the net promoter score which is used widely by many businesses to calculate their customer satisfaction, marketing strategy, and monitor customer service. This is the best way since here you get to know about what your customers know about your products. This is widely used because many customers get ready to attain it since it asks just a simple question except for getting complicated. NPS just asks the customers how likely they are to recommend the brand to their friends and family. To track your consumer's loyalty, you need to track your NPS score.


2. Engagement with your brand

The next way to know whether your customers are Loyal to your brand or not is to check how frequently they are engaged with your brand. Have a look at the fact that how frequently the customers visit your site and leave a review on the products. The engagement will suggest how much the customers are engaged and trust your brand. Also, consumers will come to know how much their engagement is being valued. Although it's not an accurate indicator, it still gives you much more information.


3. Repurchasing levels

This is one of the most known ways to know about your loyal customers. The repurchasing level of customers lets you know how much a customer is trusting your brand. Also, it will not only let you know how the customer's interest is rising but also indicates how frequently their interest is declining.



4. Multiple product purchases

If any customer is buying a single product repeatedly for a long time then this can be a positive result for your customer loyalty level. Also, even the customer who is returning to your brand and opting for other products is better for your loyalty level. The repeat purchasers are your loyal consumers but the ones connected with multiple products are going to be more powerful for you and your brand.


5. Customer Loyalty Index (CLI)

Customer loyalty index is just another loyalty index just as NPS which is derived by the customer surveys. This survey also includes repeat purchases and multiple product purchases.


How can you encourage customer loyalty?


There are several to encourage customer loyalty and the first thing on the list is customer service. Great customer service is the key way to encourage consumer Loyalty because this is the way to make the consumers feel valued. This will help you to establish an emotional connection between you and your consumers. Also nowadays the customers are more likely to pay for the great customer services.


Yes, the retail experience should be memorable for the customers but what is more memorable is how the brand responds when they receive feedback from the customers. The consumers will be more Loyal to you and your brand when they feel listened to when they are in trouble. This creates a positive impact on the customers to select you again for another purchase.


Therefore, all these mentioned points will be a lot effective in influencing the consumer's Loyalty. And summarising all the things, you must keep track of your consumer's Loyalty report and try to maintain it to a never-ending period.


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