Customer Loyalty: The Ultimate Post-Sale Strategy

Image credit: Unsplash - @dominostudio

Congrats! You’ve effectively closed a sale that has been in the works for months, and your persistent efforts have finally paid off. Time to unwind, savor the moment, and begin the search for your next possible client, right? Well, not exactly. 

Today, more than ever, the amount of new businesses opening across the country has been unlike numbers seen in the past decades, with millions of new business applications being filed yearly (5 million in 2022 to be exact, slightly down from 5.4 million in 2021). But what does this mean for you? Although the competition for customers has always been on the forefront of business owners' minds, it has never been more crucial than it is now to ensure that every step of the customer’s journey is understood and cared for. Let’s look at one crucial (and often overlooked) step of the customer’s journey; a step that may just be the key to staying afloat in a consumer-driven, competitive environment: customer loyalty.

What Is Loyalty In The Customer’s Journey?

Customer loyalty is simply a measure of a customer’s commitment and attachment to a particular brand or service. Within the customer’s journey, customer loyalty (a combination of “repeat purchase” and “advocacy”) is a big part of continuing to generate revenue after the sale.

Think of customer loyalty as the glue that binds your customers to your brand: it’s the step where a one-time buyer transforms into a recurring, dedicated customer. It’s far more than just transactional; it’s a long-lasting relationship of trust and mutual agreement.

How Much Does Customer Loyalty Matter Anyway?

To answer that question, we need to get down to the data. According to a study done by Harvard Business Review, the cost of acquiring new customers compared to selling to existing ones can be 5-25 times higher. On top of that, a separate study revealed how existing customers spend 67% more than new customers. 

Of course, these are all relative numbers that vary greatly depending on your area of business and price tag of the expenditure, but the overall trend is clear: it saves to keep customers.

Although, customer loyalty’s impact branches much farther and deeper than the on-paper profit margins. In fact, here is a list of every area in which a customer’s actions change when they are more loyal:

• Unwilling to listen to pitches from competing companies

• Possibility of referring your brand to others in their community

• Feedback on improvements or changes they are looking for

• Unlikely to search for different suppliers 

• Increased understanding when issues arise, as well as increased trust in your ability to solve the problem

So, how do you do grow customer loyalty?

Turning satisfied customers into enthusiastic advocates and loyal buyers takes ongoing attention, persistence, and compelling, clear communication. 

“As long as there is a need for the service or product you provide, a genuinely loyal customer will continue to choose you.”

A Customer Loyalty Plan Of Action

Now that you have an understanding of just how important a customer’s loyalty to your business can be, it’s time to create a plan of action. Research has shown that 44% of companies put more of a focus on new customer acquisition, while a mere 18% aim for boosting retention. Does this mean that you should immediately drop all efforts to promote and attract new clients? Absolutely not. Like all things in business, it requires a strategic and planned out approach, while balancing priorities you believe your company needs to focus on the most. 

Here are just four core categories you should focus on when striving to increase customer loyalty:

1. Exceptional Customer Service

Sure, customer service is about solving whatever problem or inquiry that may arise in the transaction of business, but exceptional customer service is all about creating an overall experience that leaves the customer feeling satisfied and eager to return. One of the many ways to achieve this is through proactive engagement: Reach out to your customers before they reach out to you, send proactive updates on order status/progress and provide helpful information related to their purchase. Find small ways to surprise and delight them!

2. Consistency and Reliability

When talking about consistency, it is crucial to consider it in two ways: what you sell, and what your brand messaging is. Although the two go hand in hand, they are each distinctly different. Consistent brand messaging ensures clarity across various channels, from email marketing to web design, and reinforces the values your company stands for. Simultaneously, delivering product quality that aligns with your advertised standards showcases reliability. Customers can quickly discern the consistency and reliability of your brand, influencing the level of trust they place in your business.

3. Emotional Connection

Creating an emotional connection has been and will always be an effective strategy in the attempt to persuade people to a certain belief or action, but it can be especially useful when wanting to strengthen the bond between you and your customer. There are many ways to accomplish this, like sharing authentic stories and personal experiences, building a sense of community through social media/live events, or reaching out to them to say thank you when it’s most meaningful. The goal is to keep the emotions and anticipated responses of your customers in mind to help solidify a bond that will make them want to come back.

4. Transparency

Be transparent with as much of your business as you can. Share information and be clear about how your customer’s data is being shared, used, and protected. Allow and encourage customer feedback on all aspects of their experience, and actively demonstrate your desire to listen and respond to the feedback. Ensuring that your customer has a clear mental picture of how your business works with them only furthers their trust and commitment to you.

It’s important to talk to your team about the various methods and solutions that are available to build loyalty. There is no one-size-fits-all: It is very important to assess what strategies would be most effective for your industry and intended audience. In the end, it’s about building lasting relationships, fostering trust, and embracing the power of customer loyalty. You will find you will not only be able to weather the storms of competition but be able to thrive in them.

Bonus Round: Who Is Doing It Well?

Nike, Starbucks, Coca-Cola, Apple, Dunkin’, Chick-fil-A, DSW, REI…

Full disclosure: we’re Apple fans. Apple has long been known as one of the biggest brands on the planet. Why? Their customers are raving fans and obnoxiously loyal. If you remember this commercial from the mid-2000s, you can see how they delivered a message that honed in on a core belief of their customers about their identity (emotional connection) and backed it up with a top-notch product (reliability). PLUS, they demonstrate that funneling more money into advertising isn’t going to fix a customer experience problem.

Feel free to take a few work-related moments to feel the nostalgia. Enjoy!