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Customer loyalty is the crux of the business success. It is always challenge to have customer as the central pivot of business. We know that customer loyalty building is never easy still can be at the core of sales, marketing and customer service. The business sphere has always tried to understand the practices based on customer centricity. It is observed that loyalty is diminishing and relentless competition has become greater challenge. Yet customer loyalty is the outcome which can be building profit, increasing value and cultivating long-lasting relationship which avoids switching. Customer satisfaction cannot be measured explicitly. But customer loyalty instead can be measured through customers’ purchase behavioural trail.
Customer loyalty programs and other retention tactics are as much about customer service as they are about rewards.
- 70% of millennials say they wouldn’t exhibit customer loyal to a brand if it doesn’t have a good loyalty program.
- The top two reasons why consumers stop participating in a loyalty program are:
- the program did not provide offers that were of interest (57%), and
- it was too hard to earn points for rewards (53%).
In addition, Brand Keys, the company behind the Annual Customer Loyalty Engagement Index (CLEI) released the 19th survey in 2015, in which they say consumer expectations have increased by 28% across the 64 categories. (Forbes, Brand Keys) In 2015, new categories were App-based Ride-sharing and Breakfast Bars. If you’re a fan of some of these brands, you’re among others who pledge their loyalty this year.
Customer loyalty though at the epi centre of sales, marketing and customer service practices its scopes is beyond it and encompasses the whole business. Hence it should be a focus of varied stakeholder’s concern. At varied touch points, customer should get same information so as to have increased credibility and trust. Customer loyalty is touchstone of measure of what customers actually do unlike customer satisfaction which is measure of what people say. Customer loyalty underscores that customer should repurchase the same product or another variant across the product range.(278)
Refer a Friend Customer Rewards
- Lyft – Referral Rewards for Drivers – Drivers can get a $10 bonus for referring passengers.
- TheSkimm – Skimm’bassadors and theSkimm readers can refer their friends to sign up for the newsletters or download the mobile app to win referral points and prizes.
Switch Loyalty to Earn Rewards
- Switching your bank loyalty or opening a new account and meeting qualifications can still result in a cash reward. Check out NerdWallet’s bank account bonuses and promotions comparison from September 2016.
Customer satisfaction and customer loyalty have common blend of five different hues: price, product, delivery, service and recognition. Research scholars have found that price, product are cognitive components as those are based on rationality or logic. Service and recognition elements are affective components as they are based on emotion or feelings. Delivery is based on both logic as well as emotions. From past five decades marketing has evolved on logical aspect. Gradually its journey continued to move towards emotional aspect more. Loyal customers were willing to get associated in varied ways and rich source of feedback of different aspects.
1.Customer loyalty substitutes with superior value instead of price as customer priority.
2.The product should be of an excellent quality otherwise customers will not repurchase the same. They will not even purchase another product of same brand. Customer loyalty has to lead to Customer delight at every possible opportunity.
3.Customer rapport leads to deliver corporate promise through relationship marketing. This avoids the switching of customers through transaction customer.
4.In Customer-centric business, as a customer-focused strategy always gives priority to customer service so as to establish greater customer loyalty. Giant businesses should be resilient as SMEs while they provide service to customers.
5.Recognition of business as a loyal customer is a laudable attempt. They cherish such brand positioning. Customer and employees have better relationship leads to greater customer loyalty through knowing each other and strengthening the relational bond.
Summary
Customer Loyalty building is imperative for companies-big or small. It is observed that switching is avoided and the risk is shared by customers. Customer Loyalty leads to successful venture which makes business profitable. Customer who are willing to be exhibit through dog loyalty instead of cat loyalty they are the prominent asset of company. It is observed that loyalty points are offered to old customers. They strengthen the bond with customers through loyalty building program.
PC: Google Images
©2019, Dr. Amit Medhekar. All rights reserved.
