If your primary objective is to find new customers, you know that your work does not stop there.
Did you know that retaining a customer costs you less than acquiring a new one?
Indeed, for some retail players, it costs up to 7 times less to retain a customer than to acquire a new one. Retaining your customers is essential for the sustainability of your business, and will allow you to delay your acquisition expenses and optimize conversions.
Here are 5 decisions to make to build a strong loyalty strategy!
What is customer loyalty based on?
First and foremost, customer loyalty is defined as all the strategies that maintain a lasting relationship with customers to satisfy them so that they do not leave you for your competitors. The goal is to make the customer renew a new purchase experience with a brand he already knows, and prevent him from turning to another brand which could better meet his expectations.
The loyalty strategies set by a company are therefore more quickly profitable. Loyal customers then become a community of ambassadors committed to your brand, a community that is not afraid to put itself forward on social networks to talk about you! Building customer loyalty is a good way for your customers to recommend your company to their friends and family.
#Decision 1: Go live shopping
Live me up is a Saas platform that offers a live shopping solution integrated directly on your website, at the heart of your other loyalty tools.
How does live shopping help develop customer loyalty?
Live Shopping is part of the e-commerce trends for 2023. This trend imported from China has generated a lot of excitement beyond the borders. Broadcasting Live shopping has grown by 76% since the health crisis, a new way of introducing oneself and one's products that has become a new perspective for companies. Major brands such as IKKS have go for this adventure which is bearing fruit. Indeed, the brand increases its conversion rate on its website by 50% thanks to a live broadcast every Monday. But how does this strategy help to increase loyalty?
Live shopping humanizes the relationship between you and your customers. Thanks to Live me up, your customers can put a face on a member of your team or on one of your ambassadors. This experience allows them to take part in a fun and friendly events. Thanks to the live chat, you allow your customers to ask all their questions… and listening to your customers is necessary to build loyalty!
Tip: don't hesitate to communicate the date of your next live event, as this will strengthen the loyalty of your customers who will become accustomed to your appointments.
#Decision 2: Focus on customer reviews
Receiving feedback from your customers is valuable. Your customers are the future ambassadors of your brand, they are the best placed to talk about you. Some brands have set up an automatic email system to collect their customers' opinions on their last purchase. With the help of softwares like Klaviyo, Hubspot or Sendinblue, you can automate the sending of an email 15 days after the purchase of a product by your customer in order to know his opinion.
Thus, you can encourage them to answer a satisfaction questionnaire or to leave a customer review on platforms such as Google my business or Facebook for example. Different softwares can help to create and send a questionnaire like Survey Monkey, Typeform or Google Forms. Your brand knows how valuable reviews are!
You can use Net Promoter Score indicator, more often called NPS, to size the satisfaction of your customers. NPS helps to understand if a brand or a product is recommended by its customers and will also identify your brand ambassadors. Net Promoter Score is the percentage of promoters minus the percentage of detractors. The NPS is an absolute number between -100 and +100. If it is positive, it means that your customers are satisfied. Thanks to NPS, you can convince and ensure your customers’ loyalty.
#Decision 3: Implement a loyalty program to boost redemption
Your customers like to be pampered and a loyalty program is thus something to be implemented according to your financial resources. Different types:
- points program,
- subscription to be part of a community of privileged people,
- loyalty program based on sponsorship etc..
To go further, check out this in-depth blog post from our partner about the different types of programs.
The benefits are numerous for your customers: invitations to private sales, sending promotional codes or invitations to your Live Shopping events for example. With a loyalty program you will increase the number of positive reviews.
Your loyalty program will improve customer loyalty, increase your annual turnover and boost your redemption rate. Indeed, the repurchase rate is a performance indicator to follow in order to analyze your campaigns on the long term. This marketing tool will allow you to identify the percentage of visitors who do not complete their purchases on your website. The repurchase rate is calculated by taking the number of customers who made a second purchase divided by the total number of customers multiplied by 100.
#Decision 4: Suggest complementary products, the art of cross selling
By cross selling, we mean the complementary products offered to your customer that allow you to boost BtoB or BtoC sales. The point of this is to showcase a customized offer: each customer is unique, you must offer him a complementary product that meets his expectations and needs, you should even offer him a product that anticipates his expectations.
Cross sales can take place in a personalized email, by offering a product that will please your customer. The complementary product can answer the customer's needs and bring him a missing element. Cross-selling supports customer satisfaction, which then facilitates loyalty!
We've talked about the repurchase rate, but another KPI is important when thinking about retention: the calculation of the company's profits over the lifetime of a customer. This is called "Customer Lifetime Value". This indicator is mainly used in loyalty campaigns, and it is compared with the cost of acquiring new customers in order to understand the company's ability to acquire and retain customers. The stronger the company is on one of the two aspects (acquisition or retention), the more its marketing expenses will be oriented to support this or that strategy.
#Decision 5: Build an impeccable customer service
A customer feels good when they feel heard and understood. Your customer likes to receive answers to his/her questions in real time, and that's what we do at Live me up. You will never be left to your own devices, we support you from start to finish: presentation of the solution, marketing point, follow-up, advices and points of improvement.
We put everything in place to make this strategy work!
You now have all the cards in hand to build customer loyalty!
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